Orchid Island Capital, Inc. Fundamental Analysis (NYSE: ORC)
Orchid Island Capital, Inc. (NYSE: ORC) shows weak financial fundamentals with a PE ratio of 96.70, profit margin of -1.01%, and ROE of -0.47%. The company generates $0.6B in annual revenue with weak year-over-year growth of 2.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ORC's fundamental strength across five key dimensions:
Efficiency Score
WeakORC struggles to generate sufficient returns from assets.
Valuation Score
ModerateORC shows balanced valuation metrics.
Growth Score
WeakORC faces weak or negative growth trends.
Financial Health Score
ModerateORC shows balanced financial health with some risks.
Profitability Score
WeakORC struggles to sustain strong margins.
Key Financial Metrics
Is ORC Expensive or Cheap?
P/E Ratio
ORC trades at 96.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ORC's PEG of -1.08 indicates potential undervaluation.
Price to Book
The market values Orchid Island Capital, Inc. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -22.56 times EBITDA. This is generally considered low.
How Well Does ORC Make Money?
Net Profit Margin
For every $100 in sales, Orchid Island Capital, Inc. keeps $-1.01 as profit after all expenses.
Operating Margin
Core operations generate 53.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.47 in profit for every $100 of shareholder equity.
ROA
Orchid Island Capital, Inc. generates $-0.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Orchid Island Capital, Inc. generates strong operating cash flow of $236.85M, reflecting robust business health.
Free Cash Flow
Orchid Island Capital, Inc. generates strong free cash flow of $236.85M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.23 in free cash annually.
FCF Yield
ORC converts 26.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
96.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How ORC Stacks Against Its Sector Peers
| Metric | ORC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 96.70 | 25.26 | Worse (Expensive) |
| ROE | -0.47% | 722.00% | Weak |
| Net Margin | -1.01% | 2077.00% | Weak |
| Debt/Equity | 8.84 | -37.25 (disorted) | Distorted |
| Current Ratio | 1.11 | 91.70 | Neutral |
| ROA | -0.05% | 270.00% | Weak |
ORC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Orchid Island Capital, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.41%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
682.96%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-77.21%
Industry Style: Income, Inflation Hedge, REIT
Declining