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Orchid Island Capital (ORC)
NYSE:ORC
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Orchid Island Capital
(NYSE:ORC)
61Neutral
Orchid Island Capital (ORC) vs. S&P 500 (SPY)
Market Cap
$602.68M
Dividend Yield23.8%
Average Volume (3M)4.13M
Price to Earnings (P/E)11.2
Beta (1Y)1.33
Revenue Growth52.96%
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength70
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.61
Shares Outstanding93,293,625
10 Day Avg. Volume6,025,106
30 Day Avg. Volume4,131,106
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.08
Price to Cash Flow (P/CF)10.90
P/FCF Ratio10.90
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
Orchid Island Capital Business Overview & Revenue Model
Company DescriptionOrchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company's RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company qualifies as a real estate investment trust for federal income tax purposes. Orchid Island Capital, Inc. was incorporated in 2010 and is based in Vero Beach, Florida.
How the Company Makes MoneyOrchid Island Capital makes money primarily through the spread between the interest income generated from its portfolio of mortgage-backed securities and the cost of borrowing funds to finance these investments. The company invests in Agency RMBS, which are considered relatively low-risk due to the government guarantee on the underlying mortgage loans. Orchid Island Capital typically employs leverage to amplify returns, borrowing funds at a lower interest rate and investing in higher-yielding mortgage securities. The company's earnings are influenced by factors such as changes in interest rates, prepayment speeds of the underlying mortgages, and the overall market conditions for mortgage securities. Revenue is also affected by the management of interest rate risk and the strategic allocation of its investment portfolio.
Orchid Island Capital Financial Statement Overview
Summary
Orchid Island Capital exhibits a mixed financial performance. The income statement shows volatility with zero revenue recently, while the balance sheet is strong with no debt. However, cash flow inconsistencies pose challenges. Overall, the financials reflect instability in revenue and profitability, impacting growth potential in a REIT-focused industry.Income Statement
Orchid Island Capital has experienced significant volatility in its revenue over the years, with substantial losses in several periods. The most recent annual data shows zero revenue, making it difficult to assess profitability metrics like gross profit margin or net profit margin. The revenue growth rate has been highly unstable, indicating financial challenges in maintaining consistent income streams.30
Negative
Balance Sheet
The company's balance sheet shows a stable equity position with stockholders' equity growing over time. The equity ratio indicates moderate reliance on own capital versus liabilities. The debt-to-equity ratio is favorable, reflecting no debt as of the latest period, which reduces financial risk. However, the fluctuating total assets and liabilities suggest potential volatility in financial structure.65
Positive
Cash Flow
Orchid Island Capital's cash flow statement reveals a mixed picture. The operating cash flow has shown improvement, but the free cash flow remains inconsistent. The operating cash flow to net income ratio is positive, indicating some efficiency in converting net income to cash. However, the free cash flow growth has been erratic, reflecting challenges in sustaining positive cash flows.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 54.41M | 154.93M | -237.74M | -49.51M | 12.67M | Gross Profit |
| 54.41M | 143.72M | -475.49M | -99.02M | 6.33M | EBIT |
| 53.06M | 0.00 | -196.75M | -64.76M | 2.13M | EBITDA |
| 0.00 | 0.00 | 0.00 | -64.76M | 2.13M | Net Income Common Stockholders |
| 37.66M | -39.23M | -258.45M | -64.76M | 2.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 409.88M | 178.31M | 205.65M | 385.14M | 220.14M | Total Assets |
| 5.72B | 4.26B | 3.87B | 7.07B | 4.06B | Total Debt |
| 0.00 | 3.71B | 3.38B | 6.24B | 3.60B | Net Debt |
| -309.33M | 3.51B | 3.17B | 5.86B | 3.38B | Total Liabilities |
| 5.05B | 3.80B | 3.43B | 788.00K | 1.16M | Stockholders Equity |
| 668.50M | 469.94M | 438.76M | 768.10M | 415.29M |
| Cash Flow | Free Cash Flow | |||
| 66.99M | 8.00M | 289.37M | 96.44M | 118.57M | Operating Cash Flow |
| 66.99M | 8.00M | 289.37M | 96.44M | 55.37M | Investing Cash Flow |
| -1.42B | -441.06M | 2.44B | -3.02B | -199.34M | Financing Cash Flow |
| 1.48B | 396.13M | -2.94B | 3.07B | 164.82M |
Orchid Island Capital Technical Analysis
Negative
6.13
Price Trends
7.91
Negative
7.68
Negative
7.48
Negative
Market Momentum
-0.15
Positive
25.85
Positive
5.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORC, the sentiment is Negative. The current price of 6.13 is below the 20-day moving average (MA) of 7.36, below the 50-day MA of 7.91, and below the 200-day MA of 7.48, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 25.85 is Positive, neither overbought nor oversold. The STOCH value of 5.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORC.
Orchid Island Capital Risk Analysis
Orchid Island Capital disclosed 72 risk factors in its most recent earnings report. Orchid Island Capital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orchid Island Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $602.36M | 46.39 | 2.50% | 11.44% | -10.24% | ― | |
61 Neutral | $602.68M | 11.23 | 6.62% | 23.80% | 52.96% | ― | |
61 Neutral | $481.37M | ― | -4.17% | 15.05% | 33.72% | -15.41% | |
61 Neutral | $4.21B | 15.62 | -3.65% | 12.27% | 6.29% | -21.37% | |
58 Neutral | $554.65M | 9.24 | 6.45% | 13.91% | -10.05% | ― | |
52 Neutral | $678.21M | 15.82 | 4.13% | 13.53% | 27.92% | ― | |
51 Neutral | $443.20M | 10.50 | 7.97% | 25.28% | 137.36% | ― |
* Real Estate Sector Average
Performance Comparison
ORC
Orchid Island Capital
6.13
-0.66
-9.72%
IVR
Invesco Mortgage
6.35
-0.49
-7.16%
RWT
Redwood
5.10
0.06
1.19%
NYMT
New York Mortgage
5.32
-0.70
-11.63%
KREF
Kkr Real Estate Finance
8.60
-0.12
-1.38%
TRTX
Tpg Re Finance
6.80
0.38
5.92%
Orchid Island Capital Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -20.18% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there are positive aspects such as a positive net interest income and a stable book value, challenges like decreased net income per share and a decline in book value over the year suggest some financial hurdles.Highlights
Positive Net Interest Income
The company reported positive net interest income, indicating a positive net interest spread, which is beneficial for income generation.
Significant Dividend Payout
For the year, 96% of the $1.44 dividend was paid out of taxable income, suggesting strong earnings coverage of dividends.
Constructive Market Outlook
The company expressed a positive outlook for the market, highlighting attractive investment environments, positive dollar rolls, and low volatility.
Stable Book Value
The book value remained unchanged at $8.09 as of the most recent update, indicating stability in asset valuation.
Lowlights
Decrease in Net Income per Share
Net income per share decreased from $0.24 in Q3 to $0.07 in Q4, indicating a significant drop in quarterly profitability.
Decline in Book Value
Book value decreased from $9.10 at the end of 2023 to $8.09 at the end of 2024, reflecting a decline in asset value over the year.
Higher Prepayment Speeds
Prepayment speeds increased to 10.5 CPR from 8.8 CPR in Q3, which could impact interest income negatively if the trend continues.
Company Guidance
In the fourth quarter of fiscal year 2024, Orchid Island Capital reported a net income of $0.07 per share, a decrease from the $0.24 per share seen in the previous quarter. The company's book value fell from $8.40 at the end of Q3 to $8.09 as of December 31, 2024. The total return for the quarter was 0.6% unannualized, inclusive of a $0.36 dividend declared during the period. The company held $5.3 billion in MBS assets, with a leverage ratio of 7.3x equity. Prepayment speeds rose to 10.5 CPR from 8.8 CPR in Q3, and liquidity was approximately 53% of equity by year-end. For the full year, Orchid Island Capital reported income of $0.57 per share compared to a loss of $0.89 per share in 2023, with a total return of 4.73% and a dividend of $1.44, 96% of which was paid from taxable income.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.