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Orchard Funding
(LSE:ORCH)
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Rating:62Neutral
Price Target:
65.00 p
▲(8.33% Upside)
Action:Downgraded
Date:03/24/26
The score is driven primarily by improved recent financial performance, tempered by high leverage and historically inconsistent cash flow. Technicals are weak with the stock below key moving averages and negative momentum, while valuation support (very low P/E and a decent yield) lifts the overall score.
Positive Factors
Revenue and Margin Expansion
The company delivered materially higher revenue and a sharp margin improvement in 2025, indicating stronger unit economics and pricing power. Sustained higher margins support durable profitability, cash generation and reinvestment capacity, improving resilience over a multi-quarter horizon.
Negative Factors
High Leverage
Leverage at these levels raises sensitivity to higher funding costs and credit squeezes, constraining strategic flexibility. Elevated debt increases refinancing and covenant risk, and limits free cash flow available for investment or shareholder returns, a persistent structural constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
The company delivered materially higher revenue and a sharp margin improvement in 2025, indicating stronger unit economics and pricing power. Sustained higher margins support durable profitability, cash generation and reinvestment capacity, improving resilience over a multi-quarter horizon.
Read all positive factors
Orchard Funding (ORCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£13.24M
Dividend Yield3.33%
Average Volume (3M)31.44K
Price to Earnings (P/E)4.0
Beta (1Y)-0.61
Revenue Growth63.15%
EPS Growth212.72%
CountryUK
Employees23
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding21,354,168
10 Day Avg. Volume34,771
30 Day Avg. Volume31,443
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.61
Price to Sales (P/S)1.26
P/FCF Ratio1.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)£11.04M
Orchard Funding Business Overview & Revenue Model
Company Description
Orchard Funding Group plc is a UK-based financial services company, operating through its various subsidiaries, which specializes in providing flexible financing solutions. The company enables both businesses and individual customers to manage the...
Orchard Funding Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
47
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.49M | 10.50M | 9.64M | 7.86M | 6.19M | 4.60M |
| Gross Profit | 9.85M | 9.93M | 5.37M | 4.14M | 4.78M | 3.37M |
| EBITDA | 6.03M | 5.86M | 2.23M | 2.22M | 1.94M | 1.12M |
| Net Income | 3.29M | 3.07M | 1.58M | 1.71M | 1.52M | 839.00K |
Balance Sheet | ||||||
| Total Assets | 67.82M | 67.55M | 69.19M | 61.88M | 48.84M | 32.44M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07M | 639.00K | 1.48M | 2.55M | 4.80M | 2.17M |
| Total Debt | 33.64M | 32.86M | 40.22M | 34.72M | 25.52M | 12.32M |
| Total Liabilities | 44.61M | 46.04M | 50.25M | 44.13M | 32.16M | 16.64M |
| Stockholders Equity | 23.20M | 21.54M | 18.90M | 17.75M | 16.68M | 15.80M |
Cash Flow | ||||||
| Free Cash Flow | 7.76M | 6.99M | -6.14M | -10.72M | -9.94M | -652.00K |
| Operating Cash Flow | 7.77M | 7.01M | -5.47M | -10.66M | -9.92M | -649.00K |
| Investing Cash Flow | -13.00K | -14.00K | -628.00K | -97.00K | -16.00K | -78.00K |
| Financing Cash Flow | -7.60M | -7.84M | 5.03M | 8.51M | 12.56M | 597.00K |
Orchard Funding Technical Analysis
Positive
60.00
Price Trends
56.82
Positive
56.83
Positive
57.61
Positive
Market Momentum
1.37
Positive
64.46
Neutral
41.67
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 below the 20-day moving average (MA) of 60.48, above the 50-day MA of 56.82, and above the 200-day MA of 57.61, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £46.44M | 7.58 | 8.28% | ― | 5.19% | 14.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | £534.60M | 12.87 | 21.54% | ― | 37.60% | 2766.67% | |
62 Neutral | £13.24M | 3.99 | 14.61% | 3.33% | 63.15% | 212.72% | |
58 Neutral | £12.35M | 7.19 | ― | ― | 35.19% | ― |
* Financial Sector Average
GB:ORCH
Orchard Funding
61.50
2.00
3.36%
GB:TIME
Time Finance plc
50.20
-9.30
-15.63%
GB:BANK
Immedia
3.75
-5.25
-58.33%
GB:LEND
Sancus Lending Group
1.15
0.70
155.56%
GB:FCH
Funding Circle Holdings
191.60
54.60
39.85%
GB:ZAIM
Zaim Credit Systems Plc
4.50
0.00
0.00%
Orchard Funding Corporate Events
DividendsFinancial DisclosuresShareholder Meetings
Orchard Funding Sets AGM Date and Confirms Final Dividend Plan
Positive
Jul 7, 2026
Orchard Funding Group PLC has circulated its annual report and accounts for the 18‑month period to 31 January 2026 to shareholders and published them on its website, alongside the formal notice of its 2026 annual general meeting. The AGM is ...
Business Operations and StrategyDividendsFinancial Disclosures
Orchard Funding lifts profit and resumes dividends after strong 18‑month period
Positive
Jun 25, 2026
Orchard Funding Group reported a strong 18‑month performance to 31 January 2026, following a change in its year-end, with lending volumes rising to £182.77m and net total income reaching £12.68m. Profit before tax climbed to £...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.