Oppenheimer Holdings is a New York City-based middle-market investment bank and broker-dealer with 2,911 employees, offering services in brokerage, investment banking, and asset management across multiple locations. The firm operates through segments including Private Client, Asset Management, and Capital Markets, with approximately 90 retail branches in the U.S.
Based on our analysis, Oppenheimer Holdings is rated as undervalued with a score of 4 out of 5 stars. Several key financial ratios highlight its potential for growth and recovery in the market.
The Price-to-Earnings (PE) ratio stands at 9.06, significantly lower than the sector average of 13.21. A lower PE ratio may indicate that the stock is undervalued relative to its earnings, suggesting that investors are paying less for each dollar of earnings compared to peers.
The Price-to-Book (PB) ratio of 0.54 versus the sector average of 1.06 further supports this undervaluation. A PB ratio below 1.0 indicates that the company's market value is less than its book value, implying that the stock may be trading at a discount.
Oppenheimer’s net profit margin of 2.42 is also considerably lower than the sector average of 18.09. While this suggests that the company is less efficient in converting revenue into profit compared to its peers, it also indicates potential for operational improvements.
The Return on Equity (ROE) ratio of 3.82, compared to the sector's 8.05, shows that shareholder returns could improve, highlighting an area for future growth. Additionally, the Return on Assets (ROA) ratio at 1.05 is above the sector average of 0.84, indicating effective asset utilization.
Lastly, the dividend yield of 1.00 is lower than the sector's average of 2.79, which may attract income-focused investors once the company improves profitability.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Financials
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