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Orchid Island Capital, Inc.NYSE:ORC Stock Report

Market Cap US$1.4b
Share Price
US$6.76
US$8
15.5% undervalued intrinsic discount
1Y-2.3%
7D-0.6%
1D
Portfolio Value
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Orchid Island Capital, Inc.

NYSE:ORC Stock Report

Market Cap: US$1.4b

Orchid Island Capital (ORC) Stock Overview

A specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. More details

ORC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance5/6
Financial Health2/6
Dividends2/6

Rewards

Price-To-Earnings ratio (11.1x) is below the US market (18.6x)

Earnings are forecast to grow 85.25% per year

Earnings grew by 248.4% over the past year

Trading at good value compared to peers and industry

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 17.75% is not well covered by earnings or free cash flows

Shareholders have been substantially diluted in the past year


ORC Community Fair Values

Create Narrative

See what 8 others think this stock is worth. Follow their fair value or set your own to get alerts.

Analyst Price Targets

View all narratives

Orchid Island Capital, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Orchid Island Capital
Historical stock prices
Current Share PriceUS$6.76
52 Week HighUS$8.40
52 Week LowUS$6.62
Beta1.58
1 Month Change-4.11%
3 Month Change-10.94%
1 Year Change-2.31%
3 Year Change-32.94%
5 Year Change-75.28%
Change since IPO-90.86%

Recent News & Updates

Seeking Alpha • Apr 27

Orchid Island Capital: Dividend Cut Hurts But Doesn't Change Thesis

Summary Orchid Island Capital recently reduced its monthly dividend from $0.12 to $0.10, with the stock hitting a new 52-week low. Despite a 16.6% dividend cut and 7.8% price drop, the yield remains an elevated 17%, reflecting inherent risk but nice income. I see two approaches: risk-averse investors can withdraw dividends to recover basis, while risk-tolerant investors may reinvest dividends to accumulate larger positions for high-yield compounding. Options strategies like buy-writes or cash-secured puts can lower entry points and enhance returns, especially when reinvesting dividends. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Apr 27

Orchid Island Capital: Dividend Cut Hurts But Doesn't Change Thesis

Summary Orchid Island Capital recently reduced its monthly dividend from $0.12 to $0.10, with the stock hitting a new 52-week low. Despite a 16.6% dividend cut and 7.8% price drop, the yield remains an elevated 17%, reflecting inherent risk but nice income. I see two approaches: risk-averse investors can withdraw dividends to recover basis, while risk-tolerant investors may reinvest dividends to accumulate larger positions for high-yield compounding. Options strategies like buy-writes or cash-secured puts can lower entry points and enhance returns, especially when reinvesting dividends. Read the full article on Seeking Alpha
User avatar
New Narrative • Mar 02

Positive Yield Curve And Asset Strategy Will Strengthen Future Financial Stability

Positively sloped yield curve and fiscal measures could boost net income through improved interest rates and stabilized mortgage market conditions.
Seeking Alpha • Jan 17

Orchid Island Capital: Beware The High Yield Trap

Summary Orchid Island Capital, Inc. attracts investors with a high yield but traps them with capital losses due to a declining share price, making it difficult to sell. ORC is poorly managed compared to peers like Arbor Realty Trust, which has a better record in the same residential mortgage sector. Risks include rising unemployment and inflation, which could lead to missed mortgage payments and higher borrowing costs, respectively. I rate ORC stock a Sell due to declining dividend payouts, high short interest, and disappointing Q3 earnings showing a decrease in book value. Read the full article on Seeking Alpha
Seeking Alpha • Nov 14

Assessing Orchid Island's Preliminary Results For Q3 2024

Summary Orchid Island Capital reported a disappointing Q3 2024 with a 2.1% BV decrease, contrary to my projected 0.8% increase. ORC's strategy of purchasing higher coupon MBS negatively impacted BV, and the lack of new hedges exacerbated valuation losses. Despite the BV decline, ORC's core earnings/EAD equivalent metric showed slight improvement, driven by plateaued borrowing costs and investment portfolio growth. ORC's unchanged monthly dividend and significant common stock issuance suggest a hold rating; investors should wait for better valuations. Read the full article on Seeking Alpha
Seeking Alpha • Oct 14

Orchid Island Capital: High-Yield Just Fair Value At Best

Summary Orchid Island Capital's 18% dividend yield raises questions about its sustainability due to a history of dividend cuts and capital losses. The dividend has drastically declined from $10.80 in 2014 to $1.80 in 2023, indicating potential for further cuts. Monthly dividends have decreased from $0.16 to $0.12 per share in the past year, reflecting market concerns. Despite potential balance sheet benefits from rising rates, long-term risks like margin calls justify a Hold rating at best. Read the full article on Seeking Alpha
Seeking Alpha • Jul 29

Orchid Island Capital: Q2 Earnings Show No Signs Of Turning Around

Summary Orchid Island Capital reported a net loss of 9 cents per share, with book value dropping from $9.12 to $8.58 and a total return margin of -1.97%. The company's high leverage, share dilution, and overpaying in dividends have led to consistent losses and underperformance for investors. Despite claims of sustainable dividends based on "Adjusted Economic Income per Share," the long-term history of dividend cuts and poor performance make investing in ORC stock risky. Read the full article on Seeking Alpha
Seeking Alpha • Jul 22

Assessing Orchid Island's Performance For Q2 2024

Summary Orchid Island Capital, Inc.’s BV matched my/our expectations (well within range; only a $0.02 per share variance). ORC’s core earnings equivalent also matched expectations (less than a $0.005 per share variance). No surprises. No change in Orchid Island Capital’s percentage recommendation ranges or risk/performance rating. ORC is currently deemed modestly overvalued (SELL). A modest-notable pullback would first need to occur before considering a purchase. Orchid Island Capital's modest BV decrease will likely be slightly more severe than most sub-sector peers. I want to see continued improvement in the company’s core earnings equivalent metric before an upgrade. Read the full article on Seeking Alpha
Seeking Alpha • Apr 25

Orchid Island Capital: Decent Results But Long-Term Issues Remain

Summary Orchid Island Capital announced better-than-expected earnings for last quarter. The company's profits did not come from its main business of collecting interest, but from hedges and derivative contracts. Orchid Island Capital has a history of overleverage, overpayment of dividends, and massive dilution, which raises doubts about its ability to maintain dividends in the future. Read the full article on Seeking Alpha
Seeking Alpha • Jan 11

Orchid Island Capital: Another Heavy Leverage, High Yield REIT

Summary Orchid Island Capital is a high-yield mortgage REIT that leverages mortgage-backed securities to offer attractive dividends. The company faces risks from high interest rates and prepayment of mortgage-backed securities. Despite challenges, Orchid Island has maintained a strong payout and is poised for a rebound with a sub-1 price/book value and a yield of 16.6%. Read the full article on Seeking Alpha
Seeking Alpha • Dec 13

Orchid Island Capital: Still A Bad Investment Choice

Summary Orchid Island Capital continues to be a poor investment. The company reported a significant loss per share and a drastic drop in book value per share. ORC's leverage ratio increased, and its liquidity level dropped, indicating potential increased risk-taking. It's probably looking at another dividend cut since its dividend is not sustainable. Read the full article on Seeking Alpha

Shareholder Returns

ORCUS Mortgage REITsUS Market
7D-0.6%-0.2%1.1%
1Y-2.3%1.2%28.7%

Return vs Industry: ORC underperformed the US Mortgage REITs industry which returned 1.2% over the past year.

Return vs Market: ORC underperformed the US Market which returned 28.7% over the past year.

Price Volatility

Is ORC's price volatile compared to industry and market?
ORC volatility
ORC Average Weekly Movement3.9%
Mortgage REITs Industry Average Movement3.7%
Market Average Movement7.2%
10% most volatile stocks in US Market16.4%
10% least volatile stocks in US Market3.1%

Stable Share Price: ORC has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ORC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010n/aRobert Cauleywww.orchidislandcapital.com

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 to as Agency RMBS. Its portfolio comprises traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS, including interest only securities, inverse interest only securities, and principal only securities.

Orchid Island Capital, Inc. Fundamentals Summary

How do Orchid Island Capital's earnings and revenue compare to its market cap?
ORC fundamental statistics
Market capUS$1.36b
Earnings (TTM)US$121.95m
Revenue (TTM)US$145.60m
11.1x
P/E Ratio
9.3x
P/S Ratio

Is ORC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ORC income statement (TTM)
RevenueUS$145.60m
Cost of RevenueUS$4.41m
Gross ProfitUS$141.19m
Other ExpensesUS$19.24m
EarningsUS$121.95m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)0.61
Gross Margin96.97%
Net Profit Margin83.76%
Debt/Equity Ratio780.7%

How did ORC perform over the long term?

See historical performance and comparison

Dividends

17.8%
Current Dividend Yield
179%
Payout Ratio

Does ORC pay a reliable dividends?

See ORC dividend history and benchmarks
When do you need to buy ORC by to receive an upcoming dividend?
Orchid Island Capital dividend dates
Ex Dividend DateApr 30 2026
Dividend Pay DateMay 28 2026
Days until Ex dividend26 days
Days until Dividend pay date2 days

Does ORC pay a reliable dividends?

See ORC dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/25 13:33
End of Day Share Price 2026/05/22 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Orchid Island Capital, Inc. is covered by 6 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jason StewartBrean Capital Historical (Janney Montgomery)
Trevor CranstonCitizens JMP Securities, LLC
Jason StewartCompass Point Research & Trading, LLC