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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 56.7GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.48%
Trailing Yield
$3.48
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
30%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OP Bancorp (OPBK) receives a "Hold" rating with a composite score of 51.5/100, ranked #1302 out of 4446 stocks. Key factor scores: Quality 57/100, Value 79/100, Momentum 43/100. This is quantitative analysis only — not investment advice.
OP Bancorp (OPBK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OP Bancorp Do?
OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificates of deposit. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, consumer, and home mortgage loans; trade financing products; and letters of credit, and SWIFT and export advice. In addition, it offers debit and credit card, online transfer and bill payment, electronic delivery of customer statements, and mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill pay; direct deposits, cashier's checks, person to person payments, wire transfers, and automated clearing house (ACH) services; and cash management services, including balance reporting, transfers between accounts, wire transfer initiation, ACH origination, and stop payment services, as well as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. As of January 27, 2022, the company operated nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara in California; and Carrollton, Texas. It also had four loan production offices in Atlanta, Georgia; Aurora, Colorado; and Lynnwood and Seattle in Washington. The company was founded in 2005 and is headquartered in Los Angeles, California. OP Bancorp (OPBK) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Min J. Kim and employs approximately 190 people. With a market capitalization of $202M, OPBK is one of the notable companies in the Financials sector.
OP Bancorp (OPBK) Stock Rating — Hold (April 2026)
As of April 2026, OP Bancorp receives a Hold rating with a composite score of 51.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OPBK ranks #1,302 out of 4,446 stocks in our coverage universe. Within the Financials sector, OP Bancorp ranks #397 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OPBK Stock Price and 52-Week Range
OP Bancorp (OPBK) currently trades at $14.25. The stock gained $0.09 (0.6%) in the most recent trading session. The 52-week high for OPBK is $15.27, which means the stock is currently trading -6.7% from its annual peak. The 52-week low is $10.43, putting the stock 36.6% above its annual trough. Recent trading volume was 78K shares, suggesting relatively thin trading activity.
Is OPBK Overvalued or Undervalued? — Valuation Analysis
OP Bancorp (OPBK) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.48x, compared to the Financials sector average of 14.88x — a discount of 43%. The price-to-book ratio stands at 0.89x, versus the sector average of 1.22x. The price-to-sales ratio is 56.14x, compared to 0.90x for the average Financials stock. On an enterprise value basis, OPBK trades at 5.18x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, OP Bancorp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
OP Bancorp Profitability — ROE, Margins, and Quality Score
OP Bancorp (OPBK) earns a quality factor score of 57/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.5%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 0.9% versus the sector average of 1.2%.
On a margin basis, OP Bancorp reports gross margins of 0.0%. The operating margin is 946.3% (sector: 21.8%). Net profit margin stands at 678.7%, versus 17.7% for the average Financials stock. Revenue growth is running at -8.6% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
OPBK Debt, Balance Sheet, and Financial Health
OP Bancorp has a debt-to-equity ratio of 1063.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.09x, suggesting adequate working capital coverage. Total debt on the balance sheet is $75M. Cash and equivalents stand at $11M.
OPBK has a beta of 0.82, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for OP Bancorp is 75/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
OP Bancorp Revenue and Earnings History — Quarterly Trend
In TTM 2026, OP Bancorp reported revenue of $4M and earnings per share (EPS) of $1.72. Net income for the quarter was $24M. Gross margin was 0.0%. Operating income came in at $33M.
In FY 2025, OP Bancorp reported revenue of $3M and earnings per share (EPS) of $1.72. Net income for the quarter was $26M. Revenue grew -1.7% year-over-year compared to FY 2024. Operating income came in at $35M.
In Q3 2025, OP Bancorp reported revenue of $725,000 and earnings per share (EPS) of $0.45. Net income for the quarter was $7M. Revenue grew -18.4% year-over-year compared to Q3 2024. Operating income came in at $10M.
In Q2 2025, OP Bancorp reported revenue of $1M and earnings per share (EPS) of $0.42. Net income for the quarter was $6M. Revenue grew 28.2% year-over-year compared to Q2 2024. Operating income came in at $8M.
Over the past 8 quarters, OP Bancorp has demonstrated a growth trajectory, with revenue expanding from $793,000 to $4M. Investors analyzing OPBK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OPBK Dividend Yield and Income Analysis
OP Bancorp (OPBK) currently pays a dividend yield of 3.5%. At this yield, a $10,000 investment in OPBK stock would generate approximately $$348.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning OPBK offers above-average income for its sector. With a net margin of 678.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
OPBK Momentum and Technical Analysis Profile
OP Bancorp (OPBK) has a momentum factor score of 43/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 11/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
OPBK vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing OPBK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OPBK vs S&P 500 (SPY) comparison to assess how OP Bancorp stacks up against the broader market across all factor dimensions.
OPBK Next Earnings Date
No upcoming earnings date has been announced for OP Bancorp (OPBK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OPBK? — Investment Thesis Summary
OP Bancorp presents a balanced picture with arguments on both sides. The value score of 79/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 75/100) reduces downside risk.
In summary, OP Bancorp (OPBK) earns a Hold rating with a composite score of 51.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OPBK stock.
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Institutional Research Dossier
OP Bancorp (OPBK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
OP Bancorp (OPBK) receives a Hold rating, reflecting a balanced view of its attractive valuation metrics offset by concerns regarding revenue contraction and reliance on potentially unsustainable operating margins. While the bank's profitability and valuation appear compelling on the surface, a deeper examination reveals underlying weaknesses that warrant caution. The primary takeaway is that investors should closely monitor revenue trends and the sustainability of OP Bancorp's exceptionally high operating margins before considering a more bullish stance.
The bank's strong profitability metrics, particularly its ROE and net margin, are noteworthy, and its valuation multiples (P/E and EV/EBITDA) suggest undervaluation relative to the sector. However, the significant revenue decline and the dependence on unusually high operating margins raise questions about the long-term viability of its current performance. The Hold rating acknowledges the potential upside from the bank's attractive valuation but also recognizes the substantial risks associated with its revenue trajectory and margin sustainability.
Business Strategy & Overview
OP Bancorp, through its subsidiary Open Bank, operates as a community bank primarily serving the Korean-American community in California, Texas, Georgia, Colorado, and Washington. The bank's core business revolves around providing traditional banking products and services, including deposit accounts (checking, savings, money market, CDs), and a variety of loan products (commercial real estate, SBA, C&I, residential mortgages, and consumer loans). A key aspect of its strategy involves catering to the specific needs of small and medium-sized businesses within its target demographic, offering services like trade financing, letters of credit, and cash management solutions.
The bank's geographic footprint is concentrated in areas with significant Korean-American populations, allowing it to leverage cultural understanding and language proficiency to build strong customer relationships. This targeted approach enables OP Bancorp to differentiate itself from larger, more generalized banks. The expansion into new markets, such as Atlanta, Aurora, and Seattle, through loan production offices, indicates a strategy of extending its reach while maintaining a focus on its core customer base. The bank also invests in digital banking solutions, including mobile banking apps and online services, to enhance customer convenience and compete effectively in the evolving financial landscape.
OP Bancorp's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and other assets and the interest paid on deposits and other liabilities. Fee income from services like cash management, trade finance, and electronic banking also contributes to the top line. The bank's strategic positioning involves balancing loan growth with prudent risk management, maintaining a diversified loan portfolio, and controlling operating expenses to maximize profitability. The focus on serving a specific niche market allows OP Bancorp to build a loyal customer base and potentially command premium pricing for its services.
However, the bank's recent revenue decline raises concerns about the effectiveness of its current strategy. The competitive landscape in the banking industry is intense, with both large national banks and smaller community banks vying for market share. OP Bancorp faces the challenge of maintaining its competitive edge while navigating regulatory changes, economic fluctuations, and evolving customer preferences. The success of its expansion strategy and its ability to adapt to the changing banking environment will be crucial for its long-term growth and profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-8.6%
Sector: 9.4%
-191% VS SCTR
Economic Moat Analysis
OP Bancorp's economic moat is likely Narrow. While the bank benefits from serving a specific niche market (the Korean-American community), its competitive advantages are not strong enough to warrant a Wide moat rating. The bank's focus on a particular demographic allows it to build stronger customer relationships and potentially command slightly higher pricing, but these advantages are not insurmountable.
One potential source of a narrow moat is customer relationships. By catering to the specific needs of the Korean-American community, OP Bancorp can foster customer loyalty and reduce customer churn. Language proficiency and cultural understanding can create a sense of trust and familiarity that larger, more generalized banks may struggle to replicate. However, these relationships are not necessarily exclusive, and customers can easily switch to other banks if they offer better rates or services.
Another potential source of a narrow moat is switching costs. While switching banks can be inconvenient, the switching costs are relatively low, especially with the increasing availability of online banking and mobile banking solutions. Customers can easily transfer their accounts and set up new direct deposits and automatic payments. Therefore, switching costs are unlikely to provide a significant competitive advantage for OP Bancorp.
OP Bancorp does not appear to possess significant cost advantages or efficient scale. The bank's operating expenses are likely comparable to those of other community banks, and it does not have the scale to achieve significant economies of scale. While the bank's targeted approach may allow it to operate more efficiently in its niche market, this advantage is not substantial enough to create a significant cost advantage.
The bank's intangible assets, such as its brand reputation and regulatory licenses, may provide a slight competitive advantage, but these assets are not unique or difficult to replicate. Other community banks can also build strong brand reputations and obtain the necessary regulatory licenses. Therefore, intangible assets are unlikely to be a major source of competitive advantage for OP Bancorp.
In conclusion, OP Bancorp's narrow moat is primarily derived from its focus on a specific niche market and its ability to build strong customer relationships within that market. However, the bank's competitive advantages are not strong enough to prevent customers from switching to other banks or to prevent new competitors from entering the market. Therefore, a Narrow moat rating is appropriate.
Financial Health & Profitability
OP Bancorp's financial health presents a mixed picture. While the bank exhibits strong profitability metrics, its revenue growth and balance sheet leverage raise concerns. The company's revenue has been declining, with a TTM revenue of $3.20 million representing an 8.6% decrease compared to the previous year. This revenue contraction is a significant red flag, as it indicates potential challenges in attracting new customers or retaining existing ones.
Despite the revenue decline, OP Bancorp's profitability metrics are exceptionally high. The company's TTM net income is $25.64 million, resulting in a net margin of 678.7%. This is significantly higher than the sector average of 17.8%. Similarly, the company's operating margin of 946.3% far exceeds the sector average of 22.0%. These unusually high margins suggest that the company may be benefiting from one-time gains or accounting adjustments that are not sustainable in the long term. The quarterly financial history shows consistently high operating margins, but the sustainability of these margins is questionable.
OP Bancorp's return on equity (ROE) of 10.5% is also higher than the sector average of 8.5%, indicating that the company is effectively utilizing its equity to generate profits. However, the high ROE may be inflated by the company's high leverage. The company's debt-to-equity ratio is a staggering 1,063.00, which is significantly higher than the sector average of 115.00. This high level of leverage increases the company's financial risk and makes it more vulnerable to economic downturns.
The company's current ratio of 1.09 indicates that it has sufficient liquid assets to cover its short-term liabilities. However, the company's free cash flow is negative, with a TTM free cash flow of -$11.19 million. This suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. The lack of free cash flow is another concern, as it limits the company's ability to invest in growth opportunities or return capital to shareholders.
In summary, OP Bancorp's financial health is characterized by strong profitability metrics but weak revenue growth and high leverage. The company's unusually high operating margins raise questions about the sustainability of its current performance. Investors should closely monitor the company's revenue trends, operating margins, and debt levels before considering an investment in OP Bancorp.
Valuation Assessment
OP Bancorp's valuation presents a seemingly attractive picture based on several key metrics. The company's P/E ratio of 7.3x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 1.1x is substantially lower than the sector average of 3.5x, further indicating undervaluation based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, it is crucial to consider the context of these valuation metrics. The company's revenue has been declining, and its exceptionally high operating margins may not be sustainable. If revenue continues to decline or operating margins revert to more normal levels, the company's earnings could decrease, and its valuation multiples could increase. Therefore, the current low valuation multiples may not accurately reflect the company's long-term prospects.
The company's free cash flow is negative, which makes it difficult to assess its valuation based on free cash flow yield. A negative free cash flow indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This is a concern, as it limits the company's ability to invest in growth opportunities or return capital to shareholders.
While the company's ROE of 10.5% is higher than the sector average, it is important to consider the company's high leverage. The company's debt-to-equity ratio of 1,063.00 is significantly higher than the sector average, which increases its financial risk. A high level of leverage can inflate ROE, as it allows the company to generate higher profits with a smaller equity base. However, it also makes the company more vulnerable to economic downturns.
Given the company's declining revenue, unsustainable operating margins, negative free cash flow, and high leverage, the current low valuation multiples may not be justified. While the stock may appear cheap on the surface, a deeper examination reveals underlying weaknesses that warrant caution. Investors should carefully consider these factors before making an investment decision.
In conclusion, OP Bancorp's valuation is seemingly attractive based on its low P/E and EV/EBITDA ratios. However, the company's declining revenue, unsustainable operating margins, negative free cash flow, and high leverage raise concerns about the validity of these valuation metrics. A fair valuation would need to account for these risks and uncertainties, potentially suggesting that the stock is not as cheap as it appears.
Risk & Uncertainty
OP Bancorp faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One of the most significant risks is revenue concentration. The bank's revenue is heavily reliant on net interest income and fee income from a relatively small number of customers, primarily within the Korean-American community. A decline in economic activity within this community or increased competition from other banks could significantly reduce the bank's revenue.
Another significant risk is margin compression. The bank's operating margins are exceptionally high, which may not be sustainable in the long term. Increased competition, rising interest rates, or changes in accounting regulations could compress the bank's margins and reduce its profitability. The sustainability of these high margins is a key uncertainty for the bank's future performance.
Credit risk is also a major concern for OP Bancorp. The bank's loan portfolio includes commercial real estate loans, SBA loans, and C&I loans, which are all subject to credit risk. An economic downturn or a decline in the value of real estate could lead to increased loan defaults and losses for the bank. The bank's high debt-to-equity ratio exacerbates this risk, as it reduces the bank's ability to absorb losses.
Regulatory risk is another factor to consider. The banking industry is heavily regulated, and changes in regulations could negatively impact OP Bancorp's business. Increased capital requirements, stricter lending standards, or changes in accounting regulations could increase the bank's costs and reduce its profitability. The bank's ability to comply with these regulations is crucial for its long-term success.
Finally, interest rate risk poses a threat. Fluctuations in interest rates can impact the bank's net interest income and the value of its assets and liabilities. Rising interest rates could increase the bank's funding costs and reduce the demand for loans. The bank's ability to manage interest rate risk is essential for maintaining its profitability and financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOP Bancorp's extremely low P/E and EV/EBITDA ratios indicate significant undervaluation, offering substantial upside potential as the market recognizes its true worth.
BULL VIEWThe bank's high ROE demonstrates efficient capital allocation and strong profitability, suggesting a well-managed institution poised for continued success.
BULL VIEWOP Bancorp's focus on the Korean-American community provides a stable and loyal customer base, insulating it from broader economic downturns and fostering consistent growth.
The Bear Case
BEAR VIEWOP Bancorp's declining revenue and unsustainable operating margins signal underlying weaknesses that could lead to a significant correction in its stock price.
BEAR VIEWThe bank's excessively high debt-to-equity ratio exposes it to substantial financial risk, making it vulnerable to economic shocks and potential insolvency.
BEAR VIEWOP Bancorp's reliance on a niche market limits its growth potential and makes it susceptible to competition from larger, more diversified banks.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OPBK and 4,400+ other equities.
OP Bancorp exhibits a 1532% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
946.3%
Sector: 21.8%
Net Margin
Bottom-line profitability
678.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+40%
Income Projection audit
A $10,000 investment would generate approximately $348 annually in dividends at the current trailing rate.
