Orrstown Financial Services (ORRF) AI Stock Analysis

• Market Cap: $532.69M
• Dividend Yield: 3.37%
• Average Volume (3M): 153.50K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.02
• Revenue Growth: 62.98%
• EPS Growth: -45.76%
• Country: US
• Employees: 607
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 1.84
• Shares Outstanding: 19,505,444
• 10 Day Avg. Volume: 155,208
• 30 Day Avg. Volume: 153,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.62
• Price to Cash Flow (P/CF): 19.70
• 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: $40.00
• Price Target Upside: 52.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Orrstown Financial Services demonstrates strong revenue growth and improved leverage management, supporting a stable financial foundation. However, challenges such as declining profit margins and negative technical momentum weigh on the stock. The P/E ratio suggests potential overvaluation, while the dividend yield provides moderate compensation. Overall, the stock requires close monitoring of profitability and cash flow stabilization.

Orrstown Financial Services Business Overview & Revenue Model

Company Description

Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as provides other fiduciary services under the Orrstown Financial Advisors name; and offers retail brokerage services through a third-party broker/dealer arrangement. Further, it offers investment advisory, insurance, and brokerage services. The company operates through offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York counties, Pennsylvania; and Anne Arundel, Baltimore, Howard, and Washington counties, Maryland, as well as Baltimore City, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is based in Shippensburg, Pennsylvania.

How the Company Makes Money

Orrstown Financial Services makes money primarily through interest income generated from its lending activities, which include commercial, residential, and consumer loans. The company also earns revenue from various non-interest income sources such as fees and service charges related to deposit accounts, loan servicing fees, and wealth management and advisory services. Additionally, Orrstown Bank benefits from strategic partnerships and collaborations with financial technology firms to enhance its service offerings and customer reach. The company's earnings are influenced by factors such as interest rate fluctuations, economic conditions in its operating regions, and the effectiveness of its risk management practices.

Orrstown Financial Services Financial Statement Overview

Summary

Orrstown Financial Services has shown strong revenue growth and improved leverage management, indicative of operational efficiency. However, declining net profit margins and inconsistent cash flow pose risks, requiring focus on profitability and cash flow stability.

Income Statement

Orrstown Financial Services shows strong revenue growth over the years, with an increase from $97.8 million in 2019 to $176.1 million in 2024. The gross profit margin remained consistently high, indicating efficient operations. However, the net profit margin has declined from 22% in 2019 to 12.5% in 2024, suggesting increased expenses or lower profit efficiency. EBIT and EBITDA margins indicate good operational earnings, but the decline in net income should be monitored.

Balance Sheet

The company's debt-to-equity ratio decreased significantly from 1.12 in 2019 to 0.36 in 2024, showing improved leverage management and financial stability. The equity ratio has improved from 9.36% in 2019 to 9.51% in 2024, reflecting a stable capital structure. Return on Equity decreased from 7.58% in 2019 to 4.27% in 2024, indicating reduced profitability relative to shareholder equity.

Cash Flow

Free cash flow has grown from $6.2 million in 2019 to $0 in 2024, reflecting challenges in maintaining positive cash flow. Operating cash flow has been volatile, with a notable decrease in 2024. The absence of reported operating cash flow in 2024 is concerning and should be addressed to ensure sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
176.14M	149.90M	1.29M	116.13M	111.92M
	Gross Profit
176.14M	143.79M	-4.67M	110.11M	105.26M
	EBIT
76.97M	141.64M	39.16M	40.90M	32.51M
	EBITDA
0.00	0.00	100.44M	85.50M	39.08M
	Net Income Common Stockholders
22.05M	35.66M	22.04M	32.88M	26.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
238.31M	546.11M	574.55M	681.15M	591.72M
	Total Assets
5.43B	3.06B	2.92B	2.83B	2.75B
	Total Debt
184.04M	169.59M	138.16M	33.86M	89.95M
	Net Debt
-54.26M	104.43M	77.34M	-174.85M	-35.31M
	Total Liabilities
4.91B	2.80B	2.69B	2.56B	2.50B
	Stockholders Equity
516.68M	265.06M	228.90M	271.66M	246.25M
Cash Flow		Free Cash Flow
0.00	41.41M	35.30M	39.56M	28.87M
	Operating Cash Flow
0.00	43.70M	36.19M	40.81M	30.17M
	Investing Cash Flow
0.00	-153.25M	-270.99M	-2.01M	-292.35M
	Financing Cash Flow
0.00	113.89M	86.91M	44.65M	331.47M

Orrstown Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 26.31 is below the 20-day moving average (MA) of 29.38, below the 50-day MA of 31.68, and below the 200-day MA of 34.08, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 28.88 is Positive, neither overbought nor oversold. The STOCH value of 5.07 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
THFF	70 Outperform	$535.90M	11.30	8.78%	4.11%	13.46%	-21.20%
HTBK	68 Neutral	$542.79M	13.37	5.95%	5.90%	3.35%	-37.36%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
WASH	63 Neutral	$528.55M	12.16	-5.77%	8.55%	-14.04%	-155.40%
SPFI	63 Neutral	$532.32M	11.06	11.75%	1.80%	13.74%	-18.39%
HIFS	62 Neutral	$519.44M	18.54	6.72%	1.06%	14.02%	5.59%
ORRF	60 Neutral	$532.69M	18.47	5.64%	3.37%	62.98%	-45.76%