OXPS Investment Analysis Report & Stock Research, OptionsXpress Hioldings, Inc.

OptionsXpress Hioldings, Incorporated (OXPS)

OXPS Stock Report

2-Year Price History

View Larger OXPS Chart
NASDAQ:OXPS
$14.56
(2/9 11:04AM)
+1.0%
Open$14.6 Mkt Cap$831.2 Million
High$14.72 52Wk High$19.38
Low$14.46 52Wk Low$8.38
Volume187,069 Avg Vol 10D417,200

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OXPS Revenue

As a value investing shop, we are interested in seeing how OXPS's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 6 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 8.29x and the low end of the range at 3.92x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for OXPS of 3.57x is well below its normal historic Price to Sales levels. At a price of $14.46, OXPS is 42% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

OXPS Cash Earnings

Looking at OXPS specifically in their Cash Earnings capabilities, Ockham views OXPS as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for OXPS, the current level of Cash Earnings compared to its historical levels helps identify where OXPS is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 23.64 and a historical low Cash Earnings per share ratio of 11.08, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for OXPS? From the Ockham perspective, we are looking specifically at OXPS to see if the market is recognizing the huge disparity between OXPS's past stock price to Cash Earnings ratio to today's levels. At a difference of 27% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at OXPS. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

OXPS Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

Peer Comparison

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OptionsXpress Hioldings, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including OXPS) 12.66 4.16 » 27.16 7.45 1.53 » 9.04 17.14% 1157.17%
*10 year range does not include current year values
San Juan Basin Royalty Trust SJT $950.8 Million $20.40 19.62 5.00 » 31.47 18.89 2.88 » 17.03 9.51% 606.98%
OptionsXpress Hioldings, Inc. OXPS $831.2 Million $14.41 12.80 6.77 » 33.63 3.57 2.07 » 12.61 38.82% 48.86%
The Student Loan Corp. STU $815.2 Million $40.76 8.48 5.03 » 37.10 0.84 0.32 » 3.81 9.14% 16.30%
EZcorp, Inc. Class A Non voting EZPW $812.3 Million $17.75 10.47 0.61 » 16.15 1.67 0.05 » 1.95 20.99% 16.28%
Investment Technology Group, Inc. ITG $737.0 Million $16.86 9.65 4.92 » 35.07 1.21 0.74 » 6.67 17.97% 14.44%
Permian Basin Royalty Trust PBT $715.9 Million $15.36 15.09 5.22 » 15.99 14.65 3.66 » 15.74 28.09% 5131.84%
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Mad Money

OptionsXpress Hioldings, Incorporated (OXPS) Discussed on CNBC's Mad Money

OptionsXpress Hioldings, Incorporated is in the news. Find out how this impacts OXPS trading on Ockham Research.

But i'm talking about call and put options. More and more people are trading ordinary investors. Just like you. Back on september 8th I interviewed the ceo of options express, OXPS. With the stock at $16.94. Now after reporting a genuine up side surprise today, the stock's at 17.84, up 5.3% from where I recommended it. I think OXPS is the best and purest way to play the trend of increased options trading without actually using options. Now, while I don't talk about can be difficult to understand and dangerous if you don't know what you're doing. I also believe that using options the right way is the single smartest, and yes, most conservative way to invest. Giving you more percentage up side than owning common stock with less risk and requiring you

“… today, the stock's at 17.84, up 5.3% from where I recommended it. I think OXPS is the best and purest way to play the trend of increased options trading without actually using options. Now, while I don't talk about can be difficult to understand and dangerous if you don't know what you're doing. I also believe that using options the right way is the single smartest, and yes, most conservative way to invest. Giving you more percentage up side than owning common stock with less risk and requiring you …”

Mad Money

OptionsXpress Hioldings, Incorporated (OXPS) Discussed on CNBC's Mad Money

OptionsXpress Hioldings, Incorporated is in the news. Find out how this impacts OXPS trading on Ockham Research.

Over strategies some good some I want to make sure you use them the right way otherwise you're playing wire w. Fire. Let's talk about the larger trend in options and the opportunities it presents. The best place to start is with options express, OXPS. The online broker that's been a pie ner in helping retail at options express it's up 56% since june, the highest percentage level since last september remember that was lehman brothers everything went this may be the best pure play on increased trading in options especially if ordinary retail environmentalists are jumping on the options bandwagon. We've got to find out how big and how sustainable this trend-s request it last, is this the way of the future and if so is it the big play? Beyond that are people trading

“… online broker that's been a pie ner in helping retail at options express it's up 56% since june, the highest percentage level since last september remember that was lehman brothers everything went this may be the best pure play on increased trading in options especially if ordinary retail environmentalists are jumping on the options bandwagon. We've got to find out how big and how sustainable this trend-s request it last, is this the way of the future and if so is it the big play? Beyond that are people trading …”

View All OptionsXpress Hioldings, Inc. Stock News

Key Fundamentals

OXPS - OptionsXpress Hioldings, Incorporated Fundamentals
Price (2/9 11:04AM) $14.56
Volume (2/9 11:04AM) 187,069
Last Close Price $14.41
10 Day Average Volume 417,200
13 Week Price Range $13.85 - $16.68
52 Week Price Range $8.38 - $19.38
LTM Revenue $233.7 Million
 
Shares Outstanding (12/2009) 57.7 Million
Market Capitalization $831.2 Million
Shares Held By Institutions 41.1 Million
Institutional Holders 212
% Shares Held By Institutions 71.30%
Earnings Per Share (EPS) $1.05
P/E Ratio 13.70
Book Value Per Share $5.17
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.55
Fiscal Year Ends December

About OptionsXpress Hioldings, Inc.

OptionsXpress Hioldings, Incorporated is considered to operate in the Financial sector. They specifically operate in the Investmnt Brokerage-National business segment contained within the Financial Services industry.

The Company offers a comprehensive suite of brokerage services for option, futures, stock, mutual fund and fixed-income investors.