Orchid Island Capital, Inc. (NYSE: ORC)

Sector: Real Estate Industry: REIT - Mortgage CIK: 0001518621
Market Cap 36.96 Mn
P/B 0.11
P/E 18.68
P/S 3.34
ROIC (Qtr) 0.73
Div Yield % 114.06
Rev 1y % (Qtr) 259.07
Total Debt (Qtr) 8.01 Bn
Debt/Equity (Qtr) 7.37

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 89.71M provides strong 253.41x coverage of stock compensation 354000, indicating sustainable incentive practices.
  • Strong operating cash flow of 89.71M provides 5.69x coverage of SG&A expenses 15.77M, showing efficient operational cost management.
  • Operating cash flow of 89.71M provides strong 27.61x coverage of operating expenses 3.25M, showing operational efficiency.
  • Strong free cash flow of 89.71M provides 5.69x coverage of SG&A expenses 15.77M, indicating efficient cost management.
  • Free cash flow of 89.71M provides solid 27.61x coverage of operating expenses 3.25M, showing operational efficiency.

Bear case

  • Operating cash flow of 89.71M barely covers its investment activities of (2.96B), with a coverage ratio of -0.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 89.71M provides thin coverage of dividend payments of (149.41M) with a -0.60 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of (287.15M) provide limited buffer against comprehensive income items of 419000, which is -685.32x, indicating elevated exposure to market risks.
  • Free cash flow of 89.71M represents just 0.03x of debt issuance 2.78B, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 89.71M is outpaced by equity issuance of 525.44M (0.17 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the REIT - Mortgage
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RITM Rithm Capital Corp. 5.56 Bn 7.15 1.12 34.97 Bn
2 STWD Starwood Property Trust, Inc. 5.05 Bn 11.75 4.20 21.43 Bn
3 AGNC AGNC Investment Corp. 4.13 Bn 1.40 1.31 95.01 Bn
4 NLY Annaly Capital Management Inc 3.69 Bn 2.21 1.94 107.02 Bn
5 LADR Ladder Capital Corp 1.29 Bn 20.14 6.00 3.51 Bn
6 MFA Mfa Financial, Inc. 0.89 Bn 3.03 2.45 9.84 Bn
7 CIM Chimera Investment Corp 0.84 Bn 8.08 1.54 12.22 Bn
8 BRSP BrightSpire Capital, Inc. 0.75 Bn -1.47 2.08 2.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.24 0.56
EV to Cash from Ops. EV/CFO 46.92 45.88
EV to Debt EV to Debt 0.28 0.87
EV to EBIT EV/EBIT 1,115.37 187.98
EV to EBITDA EV/EBITDA 1,115.37 120.37
EV to Free Cash Flow [EV/FCF] EV/FCF 46.92 56.42
EV to Market Cap EV to Market Cap 59.73 25.15
EV to Revenue EV/Rev 199.36 56.50
Price to Book Value [P/B] P/B 0.11 0.71
Price to Earnings [P/E] P/E 18.68 4.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.41 -0.57
Dividend Payout Ratio % Div Payout % (Qtr) 313.00 33.95
Dividend per Basic Share Div per Share (Qtr) 1.44 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 218.84 52.50
Interest Coverage Interest Coverage 0.00 -0.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 34.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 84.95 21.41
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 4.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.25 14.33
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.25 7.56
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.25 17.27
EBT Growth (1y) % EBT 1y % (Qtr) 3.25 7.46
EPS Growth (1y) % EPS 1y % (Qtr) -62.30 41.90
FCF Growth (1y) % FCF 1y % (Qtr) 936.58 60.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.93 16.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.04
Cash Payout Ratio Cash Payout (Qtr) 1.67 0.90
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 7.37 5.05
Interest Cover Ratio Interest Cover Ratio 0.00 -0.17
Times Interest Earned Times Interest Earned 0.00 -0.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 76.30 136.11
EBIT Margin % EBIT Margin % (Qtr) 76.28 141.14
EBT Margin % EBT Margin % (Qtr) 76.28 128.11
Gross Margin % Gross Margin % (Qtr) 100.00 114.71
Net Profit Margin % Net Margin % (Qtr) 76.30 124.85