(ORC) Orchid Island Capital - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 1.357m USD | Total Return: 20.3% in 12m
Avg Turnover: 29.6M
Qual. Beats: 0
Qual. Beats: 3
Warnings
Share dilution 98.9% YoY
Below Avwap Earnings
Tailwinds
Confidence
Orchid Island Capital, Inc. (NYSE: ORC) is a specialty finance company operating as a Real Estate Investment Trust (REIT) that invests exclusively in Agency residential mortgage-backed securities (RMBS). The portfolio includes pass-through certificates and structured RMBS, such as interest-only and principal-only securities, which are backed by single-family residential mortgage loans and guaranteed by U.S. government-sponsored enterprises.
The company’s business model relies on the spread between the yield on its RMBS assets and the borrowing costs associated with financing those assets, typically through repurchase agreements. Because Agency RMBS carry minimal credit risk due to government guarantees, the primary risks to this model are interest rate volatility and prepayment speeds. As a REIT, Orchid Island must distribute at least 90% of its taxable income to shareholders annually to maintain its tax-exempt status at the corporate level.
Investors can evaluate the sustainability of these distributions by reviewing detailed performance metrics on ValueRay. Founded in 2010 and based in Vero Beach, Florida, the firm focuses on managing a leveraged portfolio to generate net interest income for its investor base.
- Interest rate volatility impacts net interest margin and book value stability
- Federal Reserve monetary policy shifts drive Agency RMBS spread fluctuations
- Prepayment speeds on underlying mortgage loans affect portfolio yield performance
- Use of short-term repurchase agreements creates significant interest rate hedging risk
- REIT distribution requirements mandate high dividend payouts from taxable income levels
| Net Income: 122.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.48 > 1.0 |
| NWC/Revenue: -3.03k% < 20% (prev -11.3k%; Δ 8.26k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 143.3m > Net Income 122.0m |
| Net Debt (10.3b) to EBITDA (302.6m): 34.06 < 3 |
| Current Ratio: 0.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (189.3m) vs 12m ago 98.85% < -2% |
| Gross Margin: 69.03% > 18% (prev 0.79%; Δ 6.82k% > 0.5%) |
| Asset Turnover: 3.39% > 50% (prev 0.72%; Δ 2.68% > 0%) |
| Interest Coverage Ratio: 0.88 > 6 (EBITDA TTM 302.6m / Interest Expense TTM 345.1m) |
| A: -0.81 (Total Current Assets 969.1m - Total Current Liabilities 11.2b) / Total Assets 12.7b |
| B: -0.02 (Retained Earnings -203.7m / Total Assets 12.7b) |
| C: 0.03 (EBIT TTM 302.6m / Avg Total Assets 9.99b) |
| D: -0.02 (Book Value of Equity -201.6m / Total Liabilities 11.3b) |
| Altman-Z'' = -5.18 = D |
As of May 28, 2026, the stock is trading at USD 6.91 with a total of 4,943,221 shares traded.
Over the past week, the price has changed by +2.67%,
over one month by -1.96%,
over three months by -4.12% and
over the past year by +20.31%.
Orchid Island Capital has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold ORC.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 7.5 | 8.5% |
P/E Trailing = 7.1158
P/E Forward = 6.9013
P/S = 9.318
P/B = 0.9849
Revenue TTM = 339.0m USD
EBIT TTM = 302.6m USD
EBITDA TTM = 302.6m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 11.2b USD (from shortTermDebt, last quarter)
Debt = 11.2b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 10.3b USD (calculated: Debt 11.2b - CCE 915.2m)
Enterprise Value = 11.7b USD (1.36b + Debt 11.2b - CCE 915.2m)
Interest Coverage Ratio = 0.88 (Ebit TTM 302.6m / Interest Expense TTM 345.1m)
EV/FCF = 81.41x (Enterprise Value 11.7b / FCF TTM 143.3m)
FCF Yield = 1.23% (FCF TTM 143.3m / Enterprise Value 11.7b)
FCF Margin = 42.27% (FCF TTM 143.3m / Revenue TTM 339.0m)
Net Margin = 35.97% (Net Income TTM 122.0m / Revenue TTM 339.0m)
Gross Margin = 69.03% ((Revenue TTM 339.0m - Cost of Revenue TTM 105.0m) / Revenue TTM)
Gross Margin QoQ = none% (prev 29.11%)
Tobins Q-Ratio = 0.92 (Enterprise Value 11.7b / Total Assets 12.7b)
Interest Expense / Debt = 3.07% (Interest Expense 345.1m / Debt 11.2b)
Taxrate = 0.0% (0.0 / 159.0m)
NOPAT = 302.6m (EBIT 302.6m * (1 - 0.00%))
Current Ratio = 0.09 (Total Current Assets 969.1m / Total Current Liabilities 11.2b)
Debt / Equity = 8.06 (Debt 11.2b / totalStockholderEquity, last quarter 1.39b)
Debt / EBITDA = 34.06 (Net Debt 10.3b / EBITDA 302.6m)
Debt / FCF = 71.95 (Net Debt 10.3b / FCF TTM 143.3m)
Total Stockholder Equity = 1.19b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.22% (Net Income 122.0m / Total Assets 12.7b)
RoE = 8.75% (Net Income TTM 122.0m / Total Stockholder Equity 1.39b)
RoCE = 21.71% (EBIT 302.6m / Capital Employed (Equity 1.39b + L.T.Debt 0.0))
RoIC = 2.57% (NOPAT 302.6m / Invested Capital 11.8b)
WACC = 3.62% (E(1.36b)/V(12.6b) * Re(8.10%) + D(11.2b)/V(12.6b) * Rd(3.07%) * (1-Tc(0.0)))
Discount Rate = 8.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 76.97%
[DCF] Terminal Value 77.97% ; FCFF base≈105.1m ; Y1≈120.5m ; Y5≈177.3m
[DCF] Fair Price = N/A (negative equity: EV 2.67b - Net Debt 10.3b = -7.64b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.12 | # QB: 0
Revenue Correlation: N/A | Revenue CAGR: N/A | SUE: 2.81 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.35 | Chg30d=+9.37% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.35 | Chg30d=+12.90% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=1.43 | Chg30d=+26.55% | Revisions=N/A | GrowthEPS=+109.0% | GrowthRev=+118.0%
EPS next Year (2027-12-31): EPS=1.38 | Chg30d=+4.56% | Revisions=N/A | GrowthEPS=-3.9% | GrowthRev=+68.6%