ORCHID ISLAND CAPITAL INC (ORC) Stock Fundamental Analysis
NYSE:ORC - New York Stock Exchange, Inc. - US68571X3017 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to ORC. ORC was compared to 65 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ORC had positive earnings in the past year.
In the past year ORC had a positive cash flow from operations.
In multiple years ORC reported negative net income over the last 5 years.
Each year in the past 5 years ORC had a positive operating cash flow.
1.2 Ratios
ORC's Return On Assets of 0.66% is in line compared to the rest of the industry. ORC outperforms 53.85% of its industry peers.
ORC has a Return On Equity (5.63%) which is comparable to the rest of the industry.
ORC has a Return On Invested Capital of 0.52%. This is comparable to the rest of the industry: ORC outperforms 49.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 5.63% | ||
| ROIC | 0.52% |
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
ORC has a Profit Margin of 12.96%. This is in the better half of the industry: ORC outperforms 64.62% of its industry peers.
ORC's Profit Margin has declined in the last couple of years.
The Operating Margin of ORC (12.96%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ORC has declined.
ORC has a worse Gross Margin (15.50%) than 76.92% of its industry peers.
ORC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 12.96% | ||
| GM | 15.5% |
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%
2. Health
2.1 Basic Checks
The number of shares outstanding for ORC has been increased compared to 1 year ago.
Compared to 5 years ago, ORC has more shares outstanding
ORC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.91, we must say that ORC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.91, ORC is doing worse than 84.62% of the companies in the same industry.
ORC has a debt to FCF ratio of 75.02. This is a negative value and a sign of low solvency as ORC would need 75.02 years to pay back of all of its debts.
With a Debt to FCF ratio value of 75.02, ORC perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
A Debt/Equity ratio of 7.52 is on the high side and indicates that ORC has dependencies on debt financing.
ORC has a Debt to Equity ratio of 7.52. This is in the lower half of the industry: ORC underperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.52 | ||
| Debt/FCF | 75.02 | ||
| Altman-Z | -0.91 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ORC has a Current Ratio of 0.07. 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 0.07, ORC is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
ORC has a Quick Ratio of 0.07. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
ORC has a worse Quick ratio (0.07) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The earnings per share for ORC have decreased strongly by -80.95% in the last year.
ORC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.17% yearly.
Looking at the last year, ORC shows a very strong growth in Revenue. The Revenue has grown by 45.38%.
The Revenue has been growing by 19.70% on average over the past years. This is quite good.
EPS 1Y (TTM)-80.95%
EPS 3YN/A
EPS 5Y-23.17%
EPS Q2Q%233.33%
Revenue 1Y (TTM)45.38%
Revenue growth 3YN/A
Revenue growth 5Y19.7%
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 124.28% 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 5413.41% on average per year.
EPS Next Y300.32%
EPS Next 2Y124.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year200952%
Revenue Next 2Y5413.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 87.00 indicates a quite expensive valuation of ORC.
Based on the Price/Earnings ratio, ORC is valued a bit more expensive than 66.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.29. ORC is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 11.49, the valuation of ORC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORC is on the same level as its industry peers.
ORC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ORC is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| 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 124.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y124.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 20.34%, ORC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.93, ORC pays a better dividend. On top of this ORC pays more dividend than 98.46% of the companies listed in the same industry.
ORC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.34% |
5.2 History
The dividend of ORC decreases each year by -21.95%.
ORC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-21.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
245.61% of the earnings are spent on dividend by ORC. This is not a sustainable payout ratio.
DP245.61%
EPS Next 2Y124.28%
EPS Next 3YN/A
6.96
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners30.54%
Inst Owner Change-1.59%
Ins Owners0.22%
Ins Owner Change0.73%
Market Cap742.42M
Analysts75
Price Target8.16 (17.24%)
Short Float %5.61%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.34% |
Yearly Dividend1.38
Dividend Growth(5Y)-21.95%
DP245.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)807.96%
Min EPS beat(2)29.28%
Max EPS beat(2)1586.64%
EPS beat(4)2
Avg EPS beat(4)393.66%
Min EPS beat(4)-32.01%
Max EPS beat(4)1586.64%
EPS beat(8)3
Avg EPS beat(8)-61.06%
EPS beat(12)4
Avg EPS beat(12)-57.54%
EPS beat(16)5
Avg EPS beat(16)-68.22%
Revenue beat(2)2
Avg Revenue beat(2)155.51%
Min Revenue beat(2)123.99%
Max Revenue beat(2)187.03%
Revenue beat(4)4
Avg Revenue beat(4)102.8%
Min Revenue beat(4)23.6%
Max Revenue beat(4)187.03%
Revenue beat(8)5
Avg Revenue beat(8)12.1%
Revenue beat(12)6
Avg Revenue beat(12)-46.08%
Revenue beat(16)7
Avg Revenue beat(16)-68.24%
PT rev (1m)-15.79%
PT rev (3m)-15.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)90.49%
EPS NY rev (1m)0%
EPS NY rev (3m)17.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)92.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)44.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87 | ||
| Fwd PE | 11.49 | ||
| P/S | 2.55 | ||
| P/FCF | 11.08 | ||
| P/OCF | 11.08 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.08
EY1.15%
EPS(NY)0.61
Fwd EY8.71%
FCF(TTM)0.63
FCFY9.02%
OCF(TTM)0.63
OCFY9.02%
SpS2.73
BVpS6.27
TBVpS6.27
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 5.63% | ||
| ROCE | 5.59% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 0.56% | ||
| OM | 12.96% | ||
| PM (TTM) | 12.96% | ||
| GM | 15.5% | ||
| FCFM | 23.05% |
ROA(3y)-2.32%
ROA(5y)-1.56%
ROE(3y)-20.54%
ROE(5y)-13.91%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.12%
ROICexc growth 3YN/A
ROICexc growth 5Y1.19%
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%
F-Score8
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.52 | ||
| Debt/FCF | 75.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.16 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 177.87% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | -0.91 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-80.95%
EPS 3YN/A
EPS 5Y-23.17%
EPS Q2Q%233.33%
EPS Next Y300.32%
EPS Next 2Y124.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)45.38%
Revenue growth 3YN/A
Revenue growth 5Y19.7%
Sales Q2Q%100%
Revenue Next Year200952%
Revenue Next 2Y5413.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y196.02%
EBIT growth 3YN/A
EBIT growth 5Y9.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y737.06%
FCF growth 3Y-11.42%
FCF growth 5Y6.81%
OCF growth 1Y737.06%
OCF growth 3Y-11.42%
OCF growth 5Y6.81%