Orrstown Financial Services (ORRF) AI Stock Analysis

• Market Cap: $660.16M
• Dividend Yield: 3.06%
• Average Volume (3M): 166.57K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.96
• Revenue Growth: 89.40%
• EPS Growth: -29.07%
• Country: US
• Employees: 607
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 19,491,096
• 10 Day Avg. Volume: 137,813
• 30 Day Avg. Volume: 166,574
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 4.60
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 68.71
• 1Y Price Target: $38.50
• Price Target Upside: 15.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $37.00 ▲(11.08% Upside)

Orrstown Financial Services scores well due to strong financial performance and a positive earnings call, which highlight improved profitability and growth prospects. The stock's reasonable valuation and attractive dividend yield further support its appeal. Technical indicators suggest moderate momentum, balancing the overall score.

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 generates revenue through several key streams: interest income from loans and mortgages, fees from banking services such as account maintenance and transaction services, and investment management fees from its wealth management and advisory services. The company also earns income through insurance premiums collected from its insurance offerings. Strategic partnerships with financial institutions and investment firms enhance its service portfolio and client base, contributing to its overall profitability. Additionally, the bank may benefit from economic factors such as interest rate fluctuations, which can impact its net interest margin.

Orrstown Financial Services Financial Statement Overview

Summary

Orrstown Financial Services has shown strong revenue growth and improved leverage management. However, declining net profit margins and inconsistent cash flow generation pose risks, highlighting the need to enhance profitability and stabilize cash flows.

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	125.30M	93.69M	110.86M
Gross Profit	176.14M	143.79M	122.34M	87.67M	106.59M
EBITDA	0.00	0.00	29.82M	46.20M	0.00
Net Income	22.05M	35.66M	22.04M	32.88M	26.46M
Balance Sheet
Total Assets	5.44B	3.06B	2.92B	2.83B	2.75B
Cash, Cash Equivalents and Short-Term Investments	238.31M	546.11M	574.55M	681.15M	591.72M
Total Debt	184.04M	169.59M	138.16M	33.86M	89.95M
Total Liabilities	4.92B	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	33.38M	41.41M	35.30M	39.56M	28.87M
Operating Cash Flow	34.96M	43.70M	36.19M	40.81M	30.17M
Investing Cash Flow	60.99M	-153.25M	-270.99M	-2.01M	-292.56M
Financing Cash Flow	87.76M	113.89M	86.91M	44.65M	331.47M

Orrstown Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORRF, the sentiment is Positive. The current price of 33.31 is above the 20-day moving average (MA) of 33.20, above the 50-day MA of 32.21, and above the 200-day MA of 32.90, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 88.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORRF.

Orrstown Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THFF	73 Outperform	$666.36M	10.74	11.08%	3.52%	20.07%	21.46%
HTBK	72 Outperform	$608.94M	15.61	5.70%	5.37%	6.63%	-19.64%
SPFI	72 Outperform	$646.22M	12.42	12.52%	1.57%	6.07%	20.59%
ORRF	71 Outperform	$660.16M	15.16	10.47%	3.06%	89.40%	-29.07%
HIFS	69 Neutral	$564.77M	16.88	7.82%	0.99%	6.63%	62.84%
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%
WASH	56 Neutral	$555.50M	12.16	-4.88%	7.94%	-24.82%	-156.55%

Orrstown Financial Services Corporate Events

Orrstown Financial Services Announces Share Repurchase Program

On June 23, 2025, Orrstown Financial Services, Inc. announced the adoption of a share repurchase program by its Board of Directors. This program allows the company to buy back up to 500,000 shares of its common stock, which represents approximately 2.5% of its current issued and outstanding shares.

The most recent analyst rating on (ORRF) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Orrstown Financial Services stock, see the ORRF Stock Forecast page.