Investment Thesis
OP Bancorp demonstrates a solid balance sheet with $2.7B in assets, positive free cash flow generation, and acceptable ROE of 11.2%, but a catastrophic unexplained 97.9% YoY revenue decline and mathematically impossible profit margins raise severe data integrity concerns that prevent confident fundamental assessment. Until revenue trends are clarified and financial reporting quality improves, the company merits a cautious stance despite reasonable leverage metrics.
Strengths
- Strong balance sheet: $2.7B in assets with only $2.4B liabilities
- Zero long-term debt and conservative leverage (Debt/Equity 0.00x)
- Positive free cash flow generation of $23.4M with reasonable operating cash flow
Risks
- Unexplained 97.9% YoY revenue collapse from $106M to $3.2M signals either data error or material adverse event
- Unrealistic profit margin percentages (800%+ net margin, 1100%+ operating margin) indicate corrupted financial reporting
- Interest coverage of only 2.1x is tight and vulnerable to rate changes or asset quality deterioration
Key Metrics to Watch
- Revenue trend stabilization and explanation of YoY decline
- Net interest margin and loan portfolio quality metrics
- Deposit growth and funding stability
Financial Metrics
Revenue
3.2M
Net Income
25.6M
EPS (Diluted)
$1.72
Free Cash Flow
23.4M
Total Assets
2.7B
Cash
167.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,102.6%
Net Margin
800.1%
ROE
11.2%
ROA
1.0%
FCF Margin
729.1%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.4%
Interest Coverage
2.09x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-13T17:33:26.478318 |
Data as of: 2025-12-31 |
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