Oconee Federal Financial (OFED) AI Stock Analysis

Oconee Federal Financial

(Other OTC:OFED)

Select Model

Rating:54Neutral

Price Target:$20.50▲(5.83% Upside)

Action:reiterated

Date:09/24/26

OFED scores in the middle of the range. Its greatest strength is a fortress-like balance sheet — roughly 13% equity-to-assets, steadily growing assets and sharply reduced borrowings — supported by dependable free cash flow conversion. That is offset by weak earnings power: compressed margins from higher funding costs, volatile net income with no clear growth trend, and returns on equity and assets below regional-bank norms. Valuation is a further drag, with a 22.6x P/E that looks rich for this level of profitability and a modest 1.93% yield. Technically, the stock has pulled back below its short- and medium-term moving averages with negative MACD, though oversold RSI and Stochastic readings and a price still above the 200-day average temper the downside. Overall: a defensive, low-risk balance sheet paired with soft profitability and a full valuation.

Positive Factors

DeleveragingMaterial deleveraging strengthens the company’s capitalization and reduces balance-sheet pressure relative to prior years. Lower leverage can improve resilience through changing credit conditions, preserve flexibility for lending, and support more stable long-term capital allocation.

Negative Factors

Revenue DeclineThe sharp 2026 revenue contraction represents a significant break from the company’s prior positive growth pattern and weakens confidence in near-term earnings durability. If sustained, lower revenue could constrain profitability, capital generation, and the resources available to support future lending growth.

Oconee Federal Financial (OFED) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $113.48M
Dividend Yield: 1.89%
Average Volume (3M): 1,018
Price to Earnings (P/E): 21.9
Beta (1Y): 0.34
Revenue Growth: 4.78%
EPS Growth: 8.89%
Country: US
Employees: 79
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Oconee Federal Financial Business Overview & Revenue Model

Company Description

Oconee Federal Financial Corp. acts as the parent company for Oconee Federal Savings and Loan Association, providing a comprehensive range of banking solutions and financial services. Its operational footprint spans the Oconee County area of northwes...

Oconee Federal Financial Financial Statement Overview

Summary

A conservative, well-capitalized community bank profile. The balance sheet is the clear strength (score 71): assets have grown to roughly $678M, equity has risen to $88.5M for an equity-to-assets cushion near 13%, and borrowings were cut from $56.0M to $19.8M, dropping debt-to-equity from 0.71 to 0.22. Offsetting this, the income statement (54) shows margin erosion — gross margin fell from ~90% to 53-59% and net margin from 24.5% to 14.3% — with choppy earnings between $3.3M and $6.3M and no clear upward trend, plus a reporting anomaly in the latest period that makes comparisons unreliable. Cash flow (57) is positive every year and converts 85-96% of net income to free cash flow, but is small in scale and volatile, swinging from $1.0M to $6.3M of operating cash. Net result: low balance-sheet risk paired with subdued returns on equity and assets.

Income Statement

54Neutral

Balance Sheet

71Positive

Cash Flow

57Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	19.02M	30.47M	29.59M	25.48M	20.58M	17.70M
Gross Profit	15.75M	18.75M	17.35M	13.49M	15.71M	16.61M
EBITDA	5.19M	6.71M	5.95M	7.43M	5.19M	6.72M
Net Income	3.35M	4.88M	4.24M	6.25M	3.35M	4.10M
Balance Sheet
Total Assets	595.40M	677.58M	668.19M	665.60M	595.40M	544.79M
Cash, Cash Equivalents and Short-Term Investments	140.41M	4.36M	122.83M	128.18M	140.41M	161.03M
Total Debt	46.00M	19.75M	35.75M	55.95M	46.00M	9.00M
Total Liabilities	523.62M	589.08M	583.91M	586.83M	523.62M	469.54M
Stockholders Equity	71.79M	88.51M	84.28M	78.77M	71.79M	75.26M
Cash Flow
Free Cash Flow	5.96M	5.35M	3.68M	926.00K	5.96M	5.49M
Operating Cash Flow	6.33M	6.32M	4.09M	1.02M	6.33M	5.71M
Investing Cash Flow	-58.09M	-15.93M	4.23M	-11.95M	-58.09M	-37.51M
Financing Cash Flow	49.32M	2.17M	-6.06M	21.71M	49.32M	10.88M

Oconee Federal Financial Technical Analysis

Technical Analysis SentimentNegative

Last Price19.37

Price Trends

50DMA20.23Negative

100DMA19.67Negative

200DMA17.88Positive

Market Momentum

MACD-0.01Negative

RSI48.65Neutral

STOCH48.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFED, the sentiment is Negative. The current price of 19.37 is above the 20-day moving average (MA) of 19.20, below the 50-day MA of 20.23, and above the 200-day MA of 17.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 48.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFED.

Oconee Federal Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

OFED against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUBN	77Outperform	$90.59M	10.44	9.42%	4.15%	-1.64%	21.56%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PBHC	58Neutral	$106.74M	-26.87	-1.08%	2.39%	-7.07%	-307.72%
OFED	54Neutral	$112.17M	21.91	20.32%	1.89%	4.78%	8.89%
SSBI	52Neutral	$77.40M	190.50	0.33%	―	-7.24%	―

* Financial Sector Average

Performance Comparison

OFED and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
OFED	Oconee Federal Financial	19.37	3.58	22.66%
AUBN	Auburn National Bancorporation	26.00	1.56	6.40%
PBHC	Pathfinder	17.00	2.32	15.77%
SSBI	Summit State Bank	11.43	0.59	5.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 24, 2026

Oconee Federal Financial AI Stock Analysis