ORC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ORC has a bad profitability rating. Also its financial health evaluation is rather negative. ORC may be a bit undervalued, certainly considering the very reasonable score on growth

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ORC was profitable.
ORC had a positive operating cash flow in the past year.
ORC had negative earnings in 4 of the past 5 years.
Of the past 5 years ORC 4 years had a positive operating cash flow.

1.2 Ratios

ORC's Return On Assets of 0.67% is fine compared to the rest of the industry. ORC outperforms 75.00% of its industry peers.
ORC has a better Return On Equity (5.63%) than 73.53% of its industry peers.
ORC has a Return On Invested Capital (0.53%) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
ROA	0.67%
ROE	5.63%
ROIC	0.53%

ROA(3y)-2.32%

ROA(5y)-1.56%

ROE(3y)-20.54%

ROE(5y)-13.91%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 17.18%, ORC is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
ORC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.18%, ORC is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
ORC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.29%, ORC is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ORC has declined.

		Industry Rank	Sector Rank
OM	17.18%
PM (TTM)	17.18%
GM	19.29%

OM growth 3Y-56.07%

OM growth 5Y-8.8%

PM growth 3Y-56.07%

PM growth 5Y-8.8%

GM growth 3Y-51.53%

GM growth 5Y-8.82%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

There is no outstanding debt for ORC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

Based on the Altman-Z score of -0.85, we must say that ORC is in the distress zone and has some risk of bankruptcy.
ORC has a worse Altman-Z score (-0.85) than 77.94% of its industry peers.
ORC has a debt to FCF ratio of 89.26. This is a negative value and a sign of low solvency as ORC would need 89.26 years to pay back of all of its debts.
The Debt to FCF ratio of ORC (89.26) is better than 67.65% of its industry peers.
ORC has a Debt/Equity ratio of 7.37. This is a high value indicating a heavy dependency on external financing.
ORC has a worse Debt to Equity ratio (7.37) than 61.76% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	7.37
Debt/FCF	89.26
Altman-Z	-0.85

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

ORC has a Current Ratio of 0.08. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.08, ORC is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.08 indicates that ORC may have some problems paying its short term obligations.
ORC has a worse Quick ratio (0.08) than 66.18% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.08
Quick Ratio	0.08

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 435.00% over the past year.
Measured over the past years, ORC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.66% on average per year.

EPS 1Y (TTM)435%

EPS 3Y-27.66%

EPS 5YN/A

EPS Q2Q%280%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-100%

3.2 Future

Based on estimates for the next years, ORC will show a very strong growth in Earnings Per Share. The EPS will grow by 35.61% on average per year.
Based on estimates for the next years, ORC will show a very strong growth in Revenue. The Revenue will grow by 48.96% on average per year.

EPS Next Y66.32%

EPS Next 2Y35.61%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year78.88%

Revenue Next 2Y48.96%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.64, the valuation of ORC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ORC indicates a somewhat cheap valuation: ORC is cheaper than 63.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ORC to the average of the S&P500 Index (28.30), we can say ORC is valued rather cheaply.
ORC is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
77.94% of the companies in the same industry are more expensive than ORC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ORC to the average of the S&P500 Index (25.57), we can say ORC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.64
Fwd PE	7

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, ORC is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	14.59
EV/EBITDA	N/A

4.3 Compensation for Growth

ORC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ORC's earnings are expected to grow with 35.61% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.18

PEG (5Y)N/A

EPS Next 2Y35.61%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

ORC has a Yearly Dividend Yield of 17.41%, which is a nice return.
ORC's Dividend Yield is rather good when compared to the industry average which is at 11.11. ORC pays more dividend than 91.18% of the companies in the same industry.
ORC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	17.41%

5.2 History

The dividend of ORC decreases each year by -21.95%.
ORC has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)-21.95%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

ORC pays out 244.27% of its income as dividend. This is not a sustainable payout ratio.

DP244.27%

EPS Next 2Y35.61%

EPS Next 3YN/A

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ORCHID ISLAND CAPITAL INC / ORC FAQ

Can you provide the ChartMill fundamental rating for ORCHID ISLAND CAPITAL INC?

ChartMill assigns a fundamental rating of 4 / 10 to ORC.

What is the valuation status of ORCHID ISLAND CAPITAL INC (ORC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ORCHID ISLAND CAPITAL INC (ORC). This can be considered as Undervalued.

How profitable is ORCHID ISLAND CAPITAL INC (ORC) stock?

ORCHID ISLAND CAPITAL INC (ORC) has a profitability rating of 3 / 10.

What is the valuation of ORCHID ISLAND CAPITAL INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ORCHID ISLAND CAPITAL INC (ORC) is 11.64 and the Price/Book (PB) ratio is 1.2.

Can you provide the expected EPS growth for ORC stock?

The Earnings per Share (EPS) of ORCHID ISLAND CAPITAL INC (ORC) is expected to grow by 66.32% in the next year.