AIM:ORCH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Orchard Funding Group plc, through its subsidiaries, provides insurance premium finance and professional fee funding services in the United Kingdom. More Details


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

How has Orchard Funding Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ORCH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ORCH's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

ORCH

-2.4%

GB Diversified Financial

-0.2%

GB Market


1 Year Return

-37.1%

ORCH

-3.8%

GB Diversified Financial

-6.8%

GB Market

Return vs Industry: ORCH underperformed the UK Diversified Financial industry which returned -8.2% over the past year.

Return vs Market: ORCH underperformed the UK Market which returned -10.7% over the past year.


Shareholder returns

ORCHIndustryMarket
7 Day2.9%-2.4%-0.2%
30 Day10.5%22.2%14.7%
90 Day-16.0%16.2%7.6%
1 Year-34.6%-37.1%6.6%-3.8%-3.1%-6.8%
3 Year-43.6%-49.0%-3.1%-11.2%2.6%-9.9%
5 Year-46.2%-53.3%245.3%172.2%31.1%1.5%

Long-Term Price Volatility Vs. Market

How volatile is Orchard Funding Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orchard Funding Group undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORCH (£0.53) is trading below our estimate of fair value (£0.74)

Significantly Below Fair Value: ORCH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ORCH is good value based on its PE Ratio (8.8x) compared to the GB Diversified Financial industry average (13.5x).

PE vs Market: ORCH is good value based on its PE Ratio (8.8x) compared to the UK market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ORCH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ORCH is good value based on its PB Ratio (0.7x) compared to the GB Diversified Financial industry average (1.1x).


Next Steps

Future Growth

How is Orchard Funding Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ORCH's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if ORCH's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ORCH's revenue (8.3% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: ORCH's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ORCH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Orchard Funding Group performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORCH has high quality earnings.

Growing Profit Margin: ORCH's current net profit margins (26.5%) are lower than last year (40.8%).


Past Earnings Growth Analysis

Earnings Trend: ORCH's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: ORCH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORCH had negative earnings growth (-22.1%) over the past year, making it difficult to compare to the Diversified Financial industry average (-26.5%).


Return on Equity

High ROE: ORCH's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Orchard Funding Group's financial position?


Financial Position Analysis

Short Term Liabilities: ORCH's short term assets (£29.7M) exceed its short term liabilities (£14.2M).

Long Term Liabilities: ORCH's short term assets (£29.7M) exceed its long term liabilities (£72.0K).


Debt to Equity History and Analysis

Debt Level: ORCH's debt to equity ratio (70.4%) is considered high.

Reducing Debt: ORCH's debt to equity ratio has increased from 60.5% to 70.4% over the past 5 years.

Debt Coverage: ORCH's debt is well covered by operating cash flow (55.2%).

Interest Coverage: Insufficient data to determine if ORCH's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Orchard Funding Group current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ORCH's dividend (5.71%) is higher than the bottom 25% of dividend payers in the UK market (1.69%).

High Dividend: ORCH's dividend (5.71%) is in the top 25% of dividend payers in the UK market (4.96%)


Stability and Growth of Payments

Stable Dividend: ORCH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ORCH's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), ORCH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORCH's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Ravi Takhar (55 yo)

no data

Tenure

UK£251,000

Compensation

Mr. Rabinder Singh Takhar, also known as Ravi, served as Chief Risk Officer of Urban Exposure plc until June 30, 2020 and served as its Executive Director since April 30, 2018 until June 30, 2020. He serve...


CEO Compensation Analysis

Compensation vs Market: Ravi's total compensation ($USD334.83K) is about average for companies of similar size in the UK market ($USD345.54K).

Compensation vs Earnings: Ravi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rabinder Takhar
CEO & Executive Directorno dataUK£251.00k53.66%
£ 5.8m
William McShane
Part-Time CFO5.42yrsUK£39.00kno data
Iacovos Koumi
1.92yrsUK£10.00kno data
Harsukh Soni
Chief Financial Officer2.33yrsno datano data
Emmia Stratford
Head of Operationsno datano datano data
Rajiv Agarwal
Director of Legal & Compliance2.33yrsno datano data
Christopher Meyer
Head of Salesno datano datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: ORCH's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rabinder Takhar
CEO & Executive Directorno dataUK£251.00k53.66%
£ 5.8m
William McShane
Part-Time CFO5.42yrsUK£39.00kno data
Ketan Jayantilal Malde
Independent Non-Executive Director1.17yrsno datano data
Steven Hicks
Independent Chairman0.083yrno datano data

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ORCH's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Orchard Funding Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orchard Funding Group plc
  • Ticker: ORCH
  • Exchange: AIM
  • Founded: 2015
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: UK£10.891m
  • Shares outstanding: 21.35m
  • Website: https://www.orchardfundinggroupplc.com

Number of Employees


Location

  • Orchard Funding Group plc
  • 721 Capability Green
  • 1st Floor
  • Luton
  • Bedfordshire
  • LU1 3LU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORCHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2015

Biography

Orchard Funding Group plc, through its subsidiaries, provides insurance premium finance and professional fee funding services in the United Kingdom. The company offers credit to businesses and consumers to...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 19:52
End of Day Share Price2020/12/01 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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 here.