Orchard Funding (ORCH) AI Stock Analysis

• Market Cap: £12.81M
• Dividend Yield: 3.33%
• Average Volume (3M): 31.44K
• Price to Earnings (P/E): 4.2
• Beta (1Y): -0.93
• Revenue Growth: 8.91%
• EPS Growth: 94.32%
• Country: UK
• Employees: 23
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.07
• Shares Outstanding: 21,354,168
• 10 Day Avg. Volume: 34,771
• 30 Day Avg. Volume: 31,443
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 67.00p ▲(11.67% Upside)

Orchard Funding's stock is supported by strong technical indicators and an attractive valuation, making it appealing for growth and income investors. However, financial performance is mixed due to increasing leverage and inconsistent cash flow, which presents potential risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Operational Efficiency

Strong operational efficiency through cost management enhances profitability, allowing the company to reinvest in growth and innovation.

Return on Equity

Improved return on equity reflects the company's ability to generate higher profits from shareholders' investments, indicating sound management practices.

Negative Factors

Increasing Leverage

Rising leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Inconsistent Cash Flow

Negative free cash flow growth suggests challenges in cash generation, which may limit the company's ability to fund operations and strategic initiatives.

Net Profit Margin Volatility

Volatile net profit margins indicate potential instability in profitability, which could affect the company's financial health and investment capacity.

Orchard Funding Business Overview & Revenue Model

Company Description

Orchard Funding Group plc, through its subsidiaries, provides insurance premium finance, professional fee funding, and finance services in the United Kingdom. It offers credit to businesses and consumers to spread the cost of their insurance premiums; and professional customized fee funding solutions to accounting firms, professionals, and small businesses to spread the costs of their professional fees. The company was founded in 2002 and is based in Luton, the United Kingdom.

How the Company Makes Money

Orchard Funding generates revenue through several key streams: primarily, it earns interest income from the loans and financing it provides to SMEs. The company charges fees associated with its financing products, including arrangement fees, service fees, and potentially late payment fees. Additionally, Orchard Funding may generate income from the sale of financial products and services, as well as through partnerships with financial institutions that enhance its service offerings. The company's revenue model is heavily reliant on the volume and quality of the financing it provides, and it may also benefit from referrals and collaborations with other financial entities that can lead to increased business opportunities.

Orchard Funding Financial Statement Overview

Summary

Orchard Funding shows strong revenue growth and operational efficiency, but increasing leverage and inconsistent cash flow generation present potential risks. The company needs to focus on managing its debt levels and improving free cash flow to ensure long-term financial stability.

Income Statement

Orchard Funding has demonstrated consistent revenue growth over the years, with a notable increase in revenue from 2024 to 2025. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has seen fluctuations, suggesting some volatility in profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity has shown improvement, suggesting effective use of equity to generate profits. The equity ratio indicates a stable financial structure, but the increasing debt levels warrant caution.

Cash Flow

Orchard Funding's cash flow situation is mixed. While the operating cash flow has improved significantly in 2025, the free cash flow growth rate has been negative, indicating potential challenges in generating free cash. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio has been inconsistent, highlighting potential cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.50M	10.50M	9.64M	7.86M	6.19M	4.60M
Gross Profit	5.27M	9.93M	5.37M	4.14M	4.78M	3.37M
EBITDA	5.79M	5.86M	2.23M	2.22M	1.94M	1.12M
Net Income	3.07M	3.07M	1.58M	1.71M	1.52M	839.00K
Balance Sheet
Total Assets	67.55M	67.55M	69.19M	61.88M	48.84M	32.44M
Cash, Cash Equivalents and Short-Term Investments	639.00K	639.00K	1.48M	2.55M	4.80M	2.17M
Total Debt	32.86M	32.86M	40.22M	34.72M	25.52M	12.32M
Total Liabilities	46.04M	46.04M	50.25M	44.13M	32.16M	16.64M
Stockholders Equity	21.54M	21.54M	18.90M	17.75M	16.68M	15.80M
Cash Flow
Free Cash Flow	6.99M	6.99M	-6.14M	-10.72M	-9.94M	-652.00K
Operating Cash Flow	7.01M	7.01M	-5.47M	-10.66M	-9.92M	-649.00K
Investing Cash Flow	-14.00K	-14.00K	-628.00K	-97.00K	-16.00K	-78.00K
Financing Cash Flow	-7.84M	-7.84M	5.03M	8.51M	12.56M	597.00K

Orchard Funding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ORCH, the sentiment is Positive. The current price of 60 is above the 20-day moving average (MA) of 59.11, above the 50-day MA of 58.52, and above the 200-day MA of 50.55, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 71.60 is Negative, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ORCH.

Orchard Funding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£48.11M	7.97	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.81M	4.18	15.17%	3.33%	8.91%	94.32%
DFCH	72 Outperform	£82.05M	6.13	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LEND	48 Neutral	£2.29M	3.08	―	―	30.78%	―

Orchard Funding Corporate Events

Orchard Funding Group PLC Alters Financial Year End and Appoints New Auditor

Orchard Funding Group PLC has announced a change in its financial year end from 31 July to 31 January, effective immediately, to streamline operations. Additionally, the company has appointed Macalvins Limited as its new auditor for the 18-month period ending 31 January 2026, following their completion of the audit for Orchard Bond Finance PLC for the year ended 31 July 2024.

Orchard Funding Expects FY2025 Earnings to Surpass Market Expectations

Orchard Funding Group PLC has reported positive trading results for the fiscal year ending July 2025, driven by growth in the insurance premium finance market and benefiting from reduced base interest rates. The company expects earnings to exceed market expectations by over 20%, highlighting its focus on controlled growth and strengthening its core and adjacent markets.