OFG Bancorp trades at $41.45 and has moved in lockstep with the market. Its shares have returned 18.1% over the last six months while the S&P 500 has gained 21.1%.
Is now the time to buy OFG? Find out in our full research report, it’s free for active Edge members.
Why Are We Positive On OFG Bancorp?
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
1. Elite Net Interest Margin Powers Best-In-Class Loan Book
The net interest margin (NIM) is a key profitability indicator that measures the difference between what a bank earns on its loans and what it pays on its deposits. This metric measures how efficiently one can generate income from its core lending activities.
Over the past two years, we can see that OFG Bancorp’s net interest margin averaged an elite 5.6%, indicating the company has a high-yielding loan book and a low cost of funds.
3. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
OFG Bancorp’s EPS grew at an astounding 40.6% compounded annual growth rate over the last five years, higher than its 6.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
These are just a few reasons why we think OFG Bancorp is a great business, but at $41.45 per share (or 1.3× forward P/B), is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
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