Investment Thesis
Oconee Financial exhibits critically weak returns on assets (0.1%) and equity (1.7%), indicating severe capital inefficiency despite a reasonable net margin of 17.5%. The massive 932.6% YoY revenue growth paired with only 4.6% net income growth signals low earnings quality. Combined with critically stale data from 2012, these fundamental weaknesses warrant caution.
Strengths
- No long-term debt with 0.00x debt-to-equity ratio
- Adequate liquidity with $45.2M cash representing 16.3% of total assets
- High free cash flow margin of 79.1%
Risks
- Critically weak ROA of 0.1% (banking industry standard: 0.8-1.0%)
- Critically weak ROE of 1.7% (banking industry standard: 10-15%)
- Revenue growth of 932.6% far exceeds net income growth of 4.6%, indicating low-quality earnings
- High liabilities-to-equity ratio of 11.25x suggests significant leverage
- Financial data is critically stale (March 31, 2012) making analysis unreliable for current assessment
Key Metrics to Watch
- Return on Assets - needs improvement toward 0.8-1.0% minimum
- Return on Equity - needs improvement toward 10-15% minimum
- Net income growth sustainability and earnings quality
- Capital adequacy ratio and leverage trend
Financial Metrics
Revenue
2.2M
Net Income
376.3K
EPS (Diluted)
$0.00
Free Cash Flow
1.7M
Total Assets
277.3M
Cash
45.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
17.5%
ROE
1.7%
ROA
0.1%
FCF Margin
79.1%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.8%
Interest Coverage
N/A
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: 2026-04-13T20:06:27.004953 |
Data as of: 2012-03-31 |
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