Orrstown Financial Services (ORRF) AI Stock Analysis

• Market Cap: $687.09M
• Dividend Yield: 2.78%
• Average Volume (3M): 158.15K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.95
• Revenue Growth: 89.36%
• EPS Growth: -29.07%
• Country: US
• Employees: 607
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 19,508,545
• 10 Day Avg. Volume: 214,222
• 30 Day Avg. Volume: 158,149
• PEG Ratio: 2.91
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.10
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 6.76
• 1Y Price Target: $38.50
• Price Target Upside: 9.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $40.00 ▲(13.57%Upside)

Orrstown Financial Services displays a robust financial performance with strong earnings and revenue growth, supported by positive sentiment from the latest earnings call. Technical analysis points to a bullish outlook, although valuation indicators suggest the stock is fairly priced. The company's strategic initiatives, such as dividend increases and share repurchases, further bolster its investment appeal.

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 multiple streams. The primary source of income is derived from interest income on loans and leases, including residential mortgages, commercial loans, and consumer loans. Additionally, the company earns non-interest income through service fees, such as charges for maintaining accounts, transaction fees, and fees for wealth management and investment services. Another significant revenue stream is derived from gains on the sale of loans and securities. The company also benefits from strategic partnerships and relationships with other financial service providers, which can contribute to its overall earnings by expanding its range of services and customer reach.

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: 35.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.22 is above the 20-day moving average (MA) of 33.45, above the 50-day MA of 31.66, and above the 200-day MA of 33.35, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 is Neutral, 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
HTBK	79 Outperform	$609.18M	14.89	6.12%	5.26%	5.14%	-24.91%
ORRF	76 Outperform	$687.09M	16.31	13.01%	2.78%	89.36%	-29.07%
SPFI	74 Outperform	$647.32M	12.89	12.52%	1.48%	6.07%	20.59%
THFF	73 Outperform	$656.64M	10.79	11.08%	3.57%	20.07%	21.46%
HIFS	69 Neutral	$539.18M	16.30	7.82%	1.02%	6.63%	62.84%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
WASH	53 Neutral	$534.75M	12.16	-4.88%	8.08%	-24.85%	-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.

Orrstown Financial Services Holds Annual Shareholder Meeting

On May 6, 2025, Orrstown Financial Services held its annual shareholder meeting, where key decisions were made, including the election of five directors to Class B with an average approval of 92.47%. Additionally, the shareholders approved the compensation of Named Executive Officers, the 2025 Stock Incentive Plan, and ratified Crowe LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.