Oconee Federal Financial Corp. (OFED) | Investment Case

1. Company Snapshot

1.a. Company Description

Oconee Federal Financial Corp.operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia.It offers deposit products, including demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts.

The company's loan portfolio comprises one-to-four family and multi-family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans.It operates through its executive office and eight branch offices located in Oconee and Pickens Counties, South Carolina; and Stephens and Rabun Counties, Georgia.The company was founded in 1924 and is based in Seneca, South Carolina.

Oconee Federal Financial Corp.operates as a subsidiary of Oconee Federal, MHC.

Show Full description

1.b. Last Insights on OFED

Oconee Federal Financial Corp.'s recent performance has been positively influenced by its steady dividend payout, with the Board of Directors declaring a quarterly cash dividend of $0.10 per share. This move reflects the company's commitment to delivering shareholder value. Additionally, the company's stable financial position and prudent management have likely contributed to its ability to maintain a consistent dividend policy. The upcoming dividend payment, scheduled for August 21, 2025, will be a welcome development for investors.

1.c. Company Highlights

Last Price	15
Change Percentage	-1.64%
Open	15.01
Previous Close	15.25
Market Cap ( Millions)	87
Volume	652
Year High	16.21
Year Low	11.75
M A 50	15.32
M A 200	13.43

FCF Yield	0.00%
Dividend Yield	2.67%
ROE	5.52%
Debt / Equity	48.11%
Net Debt / EBIDTA	727.22%
Price To Book	1.06
Price Earnings Ratio	19.56
Price To FCF	0
Price To sales	2.93
EV / EBITDA	23.26

2. Transcript Summary

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3. NewsRoom

Oconee Federal Financial Corp. Announces Quarterly Dividend

Jul -23

Source: businesswire.com

Oconee Federal Announces Appointment of New Directors

Jun -12

Source: businesswire.com

Oconee Federal Financial Corp. Announces Stock Repurchase Plan

Apr -24

Source: businesswire.com

Oconee Federal Financial Corp. Announces Quarterly Financial Results

Apr -26

Source: businesswire.com

Oconee Federal Financial Corp. Announces Quarterly Dividend

Apr -25

Source: businesswire.com

Oconee Federal Completes Acquisition of Mutual Savings Bank

Feb -01

Source: businesswire.com

Oconee Federal to Merge With Mutual Savings Bank

Jul -20

Source: businesswire.com

Oconee Federal Financial Corp. Announces Voluntary NASDAQ Delisting and SEC Deregistration

Jul -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Consumer and Commercial Banking Services

Expected Growth: 4.5%

Growing demand for digital banking, increasing adoption of cashless transactions, and a strong small business sector in Oconee County drive growth in consumer and commercial banking services.

7. Detailed Products

Checking Accounts

Oconee Federal Financial Corp. offers various checking accounts designed to meet the unique needs of individuals, families, and businesses.

Savings Accounts

The company provides savings accounts with competitive interest rates, allowing customers to grow their savings over time.

Certificates of Deposit (CDs)

Oconee Federal Financial Corp. offers CDs with fixed interest rates and maturity dates, providing a low-risk investment option.

Mortgage Loans

The company provides mortgage loans for purchasing or refinancing a home, with competitive rates and flexible repayment terms.

Personal Loans

Oconee Federal Financial Corp. offers personal loans for various purposes, such as debt consolidation, weddings, or unexpected expenses.

Business Loans

The company provides business loans for small businesses and commercial enterprises, supporting growth and expansion.

Online Banking

Oconee Federal Financial Corp. offers online banking services, allowing customers to manage their accounts, pay bills, and transfer funds remotely.

Mobile Banking

The company provides mobile banking apps, enabling customers to access their accounts, deposit checks, and transfer funds on-the-go.

8. Oconee Federal Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oconee Federal Financial Corp. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for Oconee Federal Financial Corp. is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Oconee Federal Financial Corp. is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Oconee Federal Financial Corp. is low due to the high barriers to entry in the banking industry and the presence of regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Oconee Federal Financial Corp. is high due to the presence of multiple competitors in the banking industry and the need to differentiate itself to attract customers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.68%
Debt Cost	5.38%
Equity Weight	89.32%
Equity Cost	5.38%
WACC	5.38%
Leverage	11.96%

11. Quality Control: Oconee Federal Financial Corp. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CapFed

A-Score: 5.7/10

Value: 5.2

Growth: 0.8

Quality: 5.0

Yield: 9.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Oconee Federal

A-Score: 5.0/10

Value: 5.1

Growth: 4.2

Quality: 5.6

Yield: 5.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Rhinebeck Bancorp

A-Score: 4.7/10

Value: 7.5

Growth: 1.7

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

Broadway Financial

A-Score: 4.5/10

Value: 5.2

Growth: 5.3

Quality: 4.7

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

Hingham Savings

A-Score: 4.2/10

Value: 4.0

Growth: 4.2

Quality: 4.6

Yield: 2.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

Bogota Financial

A-Score: 4.2/10

Value: 4.4

Growth: 2.1

Quality: 2.6

Yield: 0.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.13%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.38%

Oconee Federal Financial Corp. - US6756071055

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OFED

1.c. Company Highlights

Weak Momentum

Expensive

Average Growth

Lower Growth

Stable Momentum

Fairly Valued

Average Quality

Medium Volatility

Lower Quality

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Consumer and Commercial Banking Services

Expected Growth: 4.5%

7. Detailed Products

Checking Accounts

Savings Accounts

Certificates of Deposit (CDs)

Mortgage Loans

Personal Loans

Business Loans

Online Banking

Mobile Banking

8. Oconee Federal Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Oconee Federal Financial Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.0$

Current Price

15$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA