Orrstown Financial Services (ORRF) AI Stock Analysis

• Market Cap: $587.98M
• Dividend Yield: 3.03%
• Average Volume (3M): 142.51K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.87
• Revenue Growth: 62.96%
• EPS Growth: -45.76%
• Country: US
• Employees: 425
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.84
• Shares Outstanding: 19,386,042
• 10 Day Avg. Volume: 148,154
• 30 Day Avg. Volume: 142,514
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.97
• Price to Cash Flow (P/CF): 19.60
• P/FCF Ratio: 3.90
• 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: $42.50
• Price Target Upside: 38.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Orrstown Financial Services shows strengths in revenue growth and operational efficiency, though challenges in profitability and cash flow generation somewhat temper its financial performance. Technical indicators point to a cautious outlook with potential bearish trends. Valuation metrics suggest the stock is moderately priced, with a reasonable dividend yield providing some investor appeal. Focus on improving profitability and cash flow could enhance future performance.

Orrstown Financial Services Business Overview & Revenue Model

Company Description

Orrstown Financial Services, Inc. operates as holding company, which engages in the provision of consumer and business financial services. It also offers commercial banking and trust business services which involves accepting demand, time and savings deposits, and granting loans. The company was founded on November 17, 1987 and is headquartered in Shippensburg, PA.

How the Company Makes Money

Orrstown Financial Services generates revenue primarily through its banking operations. The company makes money by collecting interest on loans provided to individuals and businesses, which is a significant source of income. Additionally, it earns interest income from investment securities. Orrstown also generates non-interest income through service charges on deposit accounts, wealth management fees, and other financial service fees. The company may engage in strategic partnerships with other financial institutions to enhance its service offerings, although specific partnerships are not detailed. Overall, its earnings are influenced by the volume of its lending, deposit activities, and the performance of its investment portfolio.

Orrstown Financial Services Financial Statement Overview

Summary

Orrstown Financial Services demonstrates solid revenue growth and robust operational margins, although there are pressures on profitability margins and cash flow generation. The balance sheet is stable with low leverage, albeit with opportunities to enhance shareholder returns. Overall, the company is well-positioned with a sound financial structure and growth potential, though it should focus on improving profitability and cash flow efficiency.

Income Statement

Orrstown Financial Services shows a strong gross profit margin of 97.95% TTM, indicating effective cost management. The net profit margin of 8.14% TTM is stable, though it reflects a decrease from previous periods, showing some pressure on profitability. The revenue growth rate of 31.16% from 2023 to TTM is impressive, signaling strong top-line growth. EBIT and EBITDA margins are healthy at 21.60% and 17.06% TTM, respectively, showing efficient operational performance.

Balance Sheet

The company's debt-to-equity ratio of 0.36 TTM indicates a conservative leverage position, which is favorable for financial stability. Return on equity stands at 3.10% TTM, lower than previous periods, suggesting room for improvement in generating returns for shareholders. The equity ratio of 9.44% TTM suggests moderate reliance on equity financing, reflecting a balanced capital structure.

Cash Flow

Free cash flow decreased by 19.84% TTM, showing some challenges in generating cash. The operating cash flow to net income ratio of 2.13 indicates strong cash conversion from profits. The free cash flow to net income ratio of 2.07 reflects efficient cash management relative to net earnings.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
196.63M	149.90M	1.29M	116.13M	111.92M	97.84M
	Gross Profit
192.59M	143.79M	-4.67M	110.11M	105.26M	92.15M
	EBIT
42.47M	141.64M	39.16M	40.90M	32.51M	19.63M
	EBITDA
33.55M	0.00	100.44M	85.50M	39.08M	0.00
	Net Income Common Stockholders
16.01M	35.66M	22.04M	32.88M	26.46M	16.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
537.66M	546.11M	574.55M	681.15M	591.72M	546.85M
	Total Assets
1.93B	3.06B	2.92B	2.83B	2.75B	2.38B
	Total Debt
179.38M	169.59M	138.16M	33.86M	89.95M	249.78M
	Net Debt
90.56M	104.43M	77.34M	-174.85M	-35.31M	193.32M
	Total Liabilities
1.76B	2.80B	2.69B	2.56B	2.50B	2.16B
	Stockholders Equity
173.43M	265.06M	228.90M	271.66M	246.25M	223.25M
Cash Flow		Free Cash Flow
33.17M	41.41M	35.30M	39.56M	28.87M	6.18M
	Operating Cash Flow
34.16M	43.70M	36.19M	40.81M	30.17M	9.09M
	Investing Cash Flow
9.04M	-153.25M	-270.99M	-2.01M	-292.35M	18.96M
	Financing Cash Flow
98.66M	113.89M	86.91M	44.65M	331.47M	-60.41M

Orrstown Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORRF, the sentiment is Negative. The current price of 30.63 is below the 20-day moving average (MA) of 32.70, below the 50-day MA of 34.25, and below the 200-day MA of 33.63, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 24.66 is Positive, neither overbought nor oversold. The STOCH value of 6.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORRF.

Orrstown Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRST	74 Outperform	$567.65M	11.71	7.39%	4.79%	6.97%	-16.70%
UVSP	70 Outperform	$798.13M	10.74	8.80%	3.05%	11.77%	7.54%
CCNE	67 Neutral	$469.12M	9.37	9.17%	3.20%	11.48%	-6.49%
ORRF	66 Neutral	$587.98M	20.49	5.64%	3.03%	62.96%	-45.76%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FULT	62 Neutral	$3.14B	11.10	9.69%	4.00%	21.10%	-4.20%
BMRC	57 Neutral	$360.58M	―	-1.92%	4.46%	-16.98%	-141.53%