ORC

Orchid Island Capital, Inc.

Fundamental data last updated:November 2, 2026

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company profile

SECTOR

Real Estate

industry

REIT - Mortgage

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company's RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company qualifies as a real estate investment trust for federal income tax purposes. Orchid Island Capital, Inc. was incorporated in 2010 and is based in Vero Beach, Florida.

 


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VALUATION

P/E

10.79

Market Cap ($M USD)

$1.06B

Forward P/E

5.05

PEG

0.04

PRICE TO SALES

3.11

PRICE TO BOOK

0.95

EV / EBITDA

41.45

5-Year Average P/E

Free Cash Flow Yield

13.58%

DCF Value

$-63.41

Graham Number

$10.33

Price to FCF

7.36

EV to FCF

80.39

Earnings Yield

9.27%

FCF Yield

13.58%

DIVIDEND

Yield

20.14%

Annual Payout

$1.40

Payout Ratio

174.95%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.64

Next Year EPS Growth Estimate

$1.38

Next Year Revenue Growth Estimate

$398.01M

Return on Equity (ROE)

10.24%

FREE CASH FLOW

Operating Margin

33.48%

Debt-to-Equity

7.47

Piotroski F-Score

6

Altman Z-Score

-0.84

Return on Invested Capital (ROIC)

7.84%

Current Ratio

0.09

Quick Ratio

0.09

Net Debt to EBITDA

37.65

Interest Coverage

0.33

Gross Profit margin

71.04%

FCF PER SHARE

$0.76

REVENUE PER SHARE

$1.79

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Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Orchid Island Capital, Inc. significantly. With a DCF value deeply negative and a Graham Number suggesting a higher intrinsic value, the stock appears undervalued. The Forward P/E of 5.13 and a robust Earnings Yield of 9.14% indicate potential growth, yet the Altman Z-score of -0.84 raises red flags about financial distress. Despite these concerns, the stock’s valuation metrics suggest a disconnect between market perception and underlying fundamentals. Investors should tread carefully, balancing the allure of value with the specter of risk.

AI Exposure / Tech Reliance

As a mortgage REIT, Orchid Island Capital is not directly exposed to AI or tech shifts. However, its reliance on data analytics for mortgage-backed securities could benefit from tech advancements. The company's adaptability hinges on integrating modern tech to optimize asset management and risk assessment.

The Bull Case

For value investors, Orchid Island Capital offers compelling reasons to buy. The ROIC of 7.84% and a solid FCF Yield of 13.39% highlight efficient capital use. A Piotroski F-Score of 6 suggests moderate financial health, while an Operating Margin of 33.48% underscores strong pricing power. These metrics paint a picture of a company capable of generating cash efficiently, appealing to those seeking undervalued opportunities.

The Bear Case

Despite some strengths, Orchid Island Capital faces significant structural risks. The Debt/Equity ratio of 7.47 is alarmingly high, indicating potential leverage issues. Its Altman Z-score suggests financial distress, and the Interest Coverage ratio of 0.33 raises concerns about its ability to meet debt obligations. Additionally, trading close to its 52-week high, the stock may be technically overextended, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$7.50

Institutional Ownership %

1-Year Beta

1.58

Insider Buying % (6 Mo)

Distance to 52-Week High

20.86%

Distance to 52-Week Low

4.75%

EARNINGS SURPRISE %

-3.70%

50-DAY SMA

$6.99

200-DAY SMA

$7.27

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.