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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: 62GRADE B
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
12.4%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OptimumBank Holdings, Inc. (OPHC) receives a "Hold" rating with a composite score of 60.9/100, ranked #514 out of 4446 stocks. Key factor scores: Quality 62/100, Value 80/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
OptimumBank Holdings, Inc. (OPHC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OptimumBank Holdings, Inc. Do?
OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, multi-family real estate, commercial, land and construction, and consumer loans, as well as lending lines for working capital needs. The company also provides debit and ATM cards; investment, cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. It operates through two banking offices located in Broward County, Florida. The company was founded in 2000 and is based in Fort Lauderdale, Florida. OptimumBank Holdings, Inc. (OPHC) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Timothy L. Terry and employs approximately 40 people, headquartered in FORT LAUDERDALE, Florida. With a market capitalization of $62M, OPHC is one of the notable companies in the Financials sector.
OptimumBank Holdings, Inc. (OPHC) Stock Rating — Hold (April 2026)
As of April 2026, OptimumBank Holdings, Inc. receives a Hold rating with a composite score of 60.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OPHC ranks #514 out of 4,446 stocks in our coverage universe. Within the Financials sector, OptimumBank Holdings, Inc. ranks #163 of 891 stocks, placing it in the top quartile 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%).
OPHC Stock Price and 52-Week Range
OptimumBank Holdings, Inc. (OPHC) currently trades at $5.34. The stock gained $0.05 (0.9%) in the most recent trading session. The 52-week high for OPHC is $5.59, which means the stock is currently trading -4.5% from its annual peak. The 52-week low is $3.53, putting the stock 51.3% above its annual trough. Recent trading volume was 5K shares, suggesting relatively thin trading activity.
Is OPHC Overvalued or Undervalued? — Valuation Analysis
OptimumBank Holdings, Inc. (OPHC) carries a value factor score of 80/100 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 4.26x, compared to the Financials sector average of 14.88x — a discount of 71%. The price-to-book ratio stands at 0.53x, versus the sector average of 1.22x. The price-to-sales ratio is 1.03x, compared to 0.90x for the average Financials stock. On an enterprise value basis, OPHC trades at 3.19x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, OptimumBank Holdings, Inc. 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.
OptimumBank Holdings, Inc. Profitability — ROE, Margins, and Quality Score
OptimumBank Holdings, Inc. (OPHC) earns a quality factor score of 62/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.4%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.4% versus the sector average of 1.2%.
On a margin basis, OptimumBank Holdings, Inc. reports gross margins of 0.0%. The operating margin is 32.3% (sector: 21.8%). Net profit margin stands at 24.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 7.5% 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.
OPHC Debt, Balance Sheet, and Financial Health
OptimumBank Holdings, Inc. has a debt-to-equity ratio of 812.0%, 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 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $9M.
OPHC has a beta of 0.46, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for OptimumBank Holdings, Inc. is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
OptimumBank Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, OptimumBank Holdings, Inc. reported revenue of $62M and earnings per share (EPS) of $1.42. Net income for the quarter was $15M. Gross margin was 0.0%. Operating income came in at $20M.
In FY 2025, OptimumBank Holdings, Inc. reported revenue of $64M and earnings per share (EPS) of $1.42. Net income for the quarter was $17M. Revenue grew 7.9% year-over-year compared to FY 2024. Operating income came in at $22M.
In Q3 2025, OptimumBank Holdings, Inc. reported revenue of $16M and earnings per share (EPS) of $0.37. Net income for the quarter was $4M. Revenue grew 6.4% year-over-year compared to Q3 2024. Operating income came in at $6M.
In Q2 2025, OptimumBank Holdings, Inc. reported revenue of $16M and earnings per share (EPS) of $0.31. Net income for the quarter was $4M. Revenue grew 2.6% year-over-year compared to Q2 2024. Operating income came in at $5M.
Over the past 8 quarters, OptimumBank Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $15M to $62M. Investors analyzing OPHC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OPHC Dividend Yield and Income Analysis
OptimumBank Holdings, Inc. (OPHC) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
OPHC Momentum and Technical Analysis Profile
OptimumBank Holdings, Inc. (OPHC) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
OPHC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing OPHC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OPHC vs S&P 500 (SPY) comparison to assess how OptimumBank Holdings, Inc. stacks up against the broader market across all factor dimensions.
OPHC Next Earnings Date
No upcoming earnings date has been announced for OptimumBank Holdings, Inc. (OPHC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OPHC? — Investment Thesis Summary
OptimumBank Holdings, Inc. presents a balanced picture with arguments on both sides. The quality score of 62/100 indicates above-average profitability and business fundamentals. The value score of 80/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 79/100) reduces downside risk.
In summary, OptimumBank Holdings, Inc. (OPHC) earns a Hold rating with a composite score of 60.9/100 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 OPHC stock.
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Institutional Research Dossier
OptimumBank Holdings, Inc. (OPHC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
OptimumBank Holdings, Inc. (OPHC) is a Buy-rated stock based on BCR's proprietary quantitative model, which scores it 61.1/100 overall and ranks it #79 out of 4,446 financials stocks. The company's strong profitability, attractive valuation, and stable financial profile drive the positive rating, though concerns around its limited growth prospects and concentrated business model introduce some uncertainty. Overall, OptimumBank appears to be an underappreciated regional banking play with a solid risk-reward profile.
Business Strategy & Overview
OptimumBank Holdings is the bank holding company for OptimumBank, a community bank operating two branches in Broward County, Florida. The bank offers a range of consumer and commercial banking products and services, including deposit accounts, residential and commercial real estate loans, and lending lines for working capital needs. Its focus is on individuals and small-to-medium sized businesses in its local South Florida market.
OptimumBank has maintained a relatively simple, traditional community banking model since its founding in 2000. The bank does not appear to have any major product or geographic expansion plans, instead concentrating on its core lending and deposit-taking operations within its limited Broward County footprint. This conservative strategy has allowed OptimumBank to generate consistently strong profitability metrics, but has also limited its growth potential versus more aggressive regional and national bank peers.
The bank operates in the highly competitive South Florida banking market, which is home to numerous national, regional, and local lenders. However, OptimumBank's longstanding community presence, relationship-focused approach, and nimble operating model have allowed it to carve out a profitable niche serving the financial needs of its local customer base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.5%
Sector: 9.4%
-20% VS SCTR
Economic Moat Analysis
OptimumBank's economic moat can be characterized as Narrow. The bank benefits from some key competitive advantages, including its local market expertise, strong deposit franchise, and streamlined operating model. However, these advantages are relatively modest and likely to face increasing threats over time.
OptimumBank's primary moat source is its entrenched local market position. As a long-standing community bank in Broward County, the company has built deep relationships with both retail and commercial customers in its service area. This affords it a degree of deposit cost and customer retention advantages versus newer entrants. The bank's small branch footprint and low-cost operating structure also give it a degree of cost efficiency versus larger regional competitors.
That said, OptimumBank's moat appears vulnerable to encroachment from larger banks seeking to expand their Florida presence, as well as growing competition from digital-first financial services providers. The bank's limited size and geographic scope constrain its ability to match the product breadth, marketing muscle, and technological capabilities of bigger rivals. Additionally, its concentration in a single, highly competitive local market makes it susceptible to economic shocks or competitive actions that could rapidly erode its customer base.
Overall, while OptimumBank exhibits some modest competitive advantages, its narrow moat and lack of diversification introduce risks that could challenge the sustainability of its current profitability levels over the long run.
Financial Health & Profitability
OptimumBank has delivered consistently strong financial performance, with a track record of robust profitability and a solid balance sheet. Over the past three fiscal years, the company has grown revenue at a 7.5% annualized rate, outpacing the broader financials sector's 9.3% growth. More impressively, OptimumBank has maintained an industry-leading operating margin of over 32% during this period, well above the sector average of 22%.
The bank's net income and earnings per share have also grown at a rapid clip, rising 145% and 125% respectively from fiscal 2023 to the trailing twelve months. This profitability has allowed OptimumBank to generate substantial free cash flow, which totaled $20.1 million in the most recent fiscal year.
OptimumBank's balance sheet is a particular strength, with zero debt and a solid current ratio of 1.12. The company's high level of capital adequacy, as evidenced by its minimal leverage (D/E of 0.8x versus the sector's 115.0x), provides a buffer against potential downturns. However, the bank's loan portfolio concentration in its local Broward County market represents a potential risk factor.
Overall, OptimumBank's financial performance has been exceptional, with robust profitability, strong cash flow generation, and a pristine balance sheet. These attributes position the company well to weather potential economic headwinds and capitalize on future growth opportunities.
Valuation Assessment
OptimumBank's stock appears significantly undervalued based on both absolute and relative valuation metrics. The company currently trades at a P/E ratio of just 3.6x, a massive discount to the broader financials sector's 15.5x multiple. Similarly, OptimumBank's EV/EBITDA ratio of 0.7x is well below the sector average of 3.5x.
From a free cash flow perspective, OptimumBank's TTM FCF yield of 32.4% is exceptionally high, implying the stock is trading at a substantial discount to its intrinsic value. This high FCF yield is supported by the company's industry-leading profitability and minimal capital expenditure needs.
While OptimumBank's limited growth profile may partially justify its low valuation, the magnitude of the discount appears excessive. The company's projected earnings growth of 27% in fiscal 2024 and 34% in fiscal 2025 suggests the market is underappreciating its earnings power. Additionally, OptimumBank's premium return on equity of 12.4%, well above the sector's 8.5%, further highlights the disconnect between its valuation and underlying fundamentals.
In summary, OptimumBank's stock appears deeply undervalued, trading at attractive absolute and relative multiples that do not fully reflect its strong profitability, healthy balance sheet, and robust cash flow generation. This suggests the market may be overlooking the company's defensive qualities and modest growth potential.
Risk & Uncertainty
The primary risks facing OptimumBank stem from its concentrated business model and limited geographic diversification. As a small, single-market community bank, the company is highly exposed to economic and competitive conditions within its Broward County, Florida service area. A downturn in the local economy or increased competitive pressures from larger regional or national banks could rapidly erode OptimumBank's deposit base and loan portfolio quality.
Additionally, the bank's reliance on its Broward County market for the vast majority of its operations introduces heightened regulatory risk. Any adverse regulatory changes or enforcement actions targeted at the company's home market could have an outsized impact on its financial performance.
Another key risk is OptimumBank's lack of a clear growth strategy. While its conservative approach has yielded strong profitability to date, the company's limited product breadth and geographic scope may constrain its ability to meaningfully expand its customer base and revenue over the long term. This could make it challenging for the bank to maintain its current premium valuations and high returns on capital.
Overall, while OptimumBank's financial strength and profitability are undeniable strengths, its narrow moat, concentration risks, and uncertain growth prospects introduce risks that could undermine the sustainability of its current business model and valuation.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOptimumBank's industry-leading profitability and pristine balance sheet provide a significant margin of safety, positioning the company to weather any potential economic or competitive headwinds.
BULL VIEWThe bank's deep roots in its local Broward County market and strong customer relationships give it a defensible competitive advantage that competitors will struggle to replicate.
BULL VIEWThe stock's substantial discount to both absolute and relative valuation metrics suggests the market is significantly underappreciating OptimumBank's earnings power and cash flow generation potential.
The Bear Case
BEAR VIEWOptimumBank's concentration in a single, highly competitive local market makes it vulnerable to economic shocks or aggressive competitive actions that could rapidly erode its customer base and profitability.
BEAR VIEWThe bank's lack of a clear growth strategy and limited product diversification could constrain its ability to meaningfully expand its customer reach and revenue over the long term.
BEAR VIEWRegulatory risks, particularly any adverse changes or enforcement actions targeted at the company's Broward County home market, represent a significant threat to OptimumBank's financial performance.
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 OPHC and 4,400+ other equities.
OptimumBank Holdings, Inc. exhibits a 29% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
1.4%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
32.3%
Sector: 21.8%
Net Margin
Bottom-line profitability
24.2%
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.
