Oportun Financial Intrinsic Value Calculation – OPORTUN FINANCIAL Reports Third Quarter Earnings for FY2023
November 21, 2023
🌥️Earnings Overview
For the third quarter of FY2023, OPORTUN FINANCIAL ($NASDAQ:OPRT) reported total revenue of USD 85.2 million, a decrease of 42.0% year-over-year. Additionally, net income for the quarter was reported to be USD -21.1 million, an 84.7 million dollar reduction from the same quarter in the prior year.
Market Price
The financial services and technology company saw their stock open at $6.2 and close at $5.8, a decrease of 4.9% from its prior closing price of $6.1. The results reveal that OPORTUN FINANCIAL saw a small drop in profits compared to the previous year, due to a decrease in interest income and higher operating expenses. The company is well-positioned to continue its mission of providing access to credit and other financial products to underserved markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Oportun Financial. More…
| Total Revenues | Net Income | Net Margin |
| 352.01 | -146.55 | -41.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Oportun Financial. More…
| Operations | Investing | Financing |
| 374.99 | -445.04 | -2.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Oportun Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.43k | 2.99k | 12.89 |
Key Ratios Snapshot
Some of the financial key ratios for Oportun Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.1% | – | – |
| FCF Margin | ROE | ROA |
| 95.9% | -28.4% | -3.7% |
Analysis – Oportun Financial Intrinsic Value Calculation
GoodWhale recently analyzed the financials of OPORTUN FINANCIAL and found that the intrinsic value of OPORTUN FINANCIAL share is around $8.3. This value was calculated by our proprietary Valuation Line, which takes into account key earnings metrics such as revenue, profitability, debt, and cash flow. At the time of writing, OPORTUN FINANCIAL stock is trading at $5.8, which is significantly lower than its intrinsic value. This implies that the stock is undervalued by 30.0%. This presents a great opportunity for investors to buy the stock and earn good returns. More…
Peers
Founded in 2005, Oportun has provided over 6 million loans totaling more than $4 billion since inception. Oportun operates in 19 states across the United States and Mexico, with a focus on serving Hispanic and immigrant communities. The company offers small loans, typically between $300 and $2,500, to help cover unexpected expenses or access to credit. In recent years, Oportun has faced increasing competition from other financial services companies that are targeting underserved consumers, including Yangzhou Guangling District Taihe Rural Micro-finance Co Ltd, Focus Business Solution Ltd, and Dunxin Financial Holdings Ltd. Despite the competition, Oportun has remained a leader in the space by offering a unique combination of products, services, and technology that meets the needs of its customers. The company has also continued to invest in its team and infrastructure, which has positioned it well to compete in the future.
– Yangzhou Guangling District Taihe Rural Micro-finance Co Ltd ($SEHK:01915)
The company’s market cap is 1.4B as of 2022 and its ROE is -1.12%. The company is engaged in the business of micro-finance in rural areas of China.
– Focus Business Solution Ltd ($BSE:543312)
Focus Business Solution Ltd has a market cap of 59.22M as of 2022, a Return on Equity of 5.01%. The company provides software solutions to businesses of all sizes, across a wide range of industries. Its products are used by over 1,000 customers in over 50 countries.
– Dunxin Financial Holdings Ltd ($NYSEAM:DXF)
Dunxin Financial Holdings Ltd is a Hong Kong-based company principally engaged in the provision of personal financial services. The Company operates its business through four segments. The Property segment is engaged in the provision of property-related services, including mortgage loan, loan against property and property valuation services. The Banking segment is engaged in the provision of banking products and services, including current accounts, savings accounts, time deposits, foreign currency deposits, loans, credit cards, remittances and others. The Credit Cards segment is engaged in the provision of credit card services. The Others segment is engaged in the provision of other services.
Summary
OPORTUN FINANCIAL, a financial services provider, reported their earnings results for the third quarter of FY2023. Revenue decreased by 42.0% from the prior year, and net income was reported to be USD -21.1 million, a reduction of -84.7 million from the same quarter in the prior year. In response to this news, the stock price dropped significantly, indicating investor concern about the company’s performance.
A closer analysis of the company’s financials and statements is needed to determine if the drop is a buying opportunity or if more losses are expected in the future. Investors should also evaluate OPORTUN FINANCIAL’s competitive advantages and any potential growth opportunities before making a decision.
Related Posts
Recent Posts
