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ORCH

Orchard Funding GroupAIM:ORCH Stock Report

Last Price

UK£0.49

Market Cap

UK£10.6m

7D

1.0%

1Y

-13.9%

Updated

16 Jan, 2022

Data

Company Financials +
ORCH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health2/6
Dividends4/6

ORCH Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Orchard Funding Group
Historical stock prices
Current Share PriceUK£0.49
52 Week HighUK£0.62
52 Week LowUK£0.46
Beta0.27
1 Month Change-5.71%
3 Month Change-10.00%
1 Year Change-13.91%
3 Year Change-47.90%
5 Year Change-41.42%
Change since IPO-48.97%

Recent News & Updates

Nov 25
Orchard Funding Group (LON:ORCH) Has Affirmed Its Dividend Of UK£0.02

Orchard Funding Group (LON:ORCH) Has Affirmed Its Dividend Of UK£0.02

Orchard Funding Group plc ( LON:ORCH ) will pay a dividend of UK£0.02 on the 17th of December. This means the annual...

Oct 29
Orchard Funding Group (LON:ORCH) Will Pay A Dividend Of UK£0.02

Orchard Funding Group (LON:ORCH) Will Pay A Dividend Of UK£0.02

Orchard Funding Group plc ( LON:ORCH ) will pay a dividend of UK£0.02 on the 17th of December. The dividend yield is...

May 06
Is Orchard Funding Group plc's (LON:ORCH) 5.7% Dividend Sustainable?

Is Orchard Funding Group plc's (LON:ORCH) 5.7% Dividend Sustainable?

Dividend paying stocks like Orchard Funding Group plc ( LON:ORCH ) tend to be popular with investors, and for good...

Shareholder Returns

ORCHGB Diversified FinancialGB Market
7D1.0%0.8%-0.5%
1Y-13.9%9.4%8.7%

Return vs Industry: ORCH underperformed the UK Diversified Financial industry which returned 9.4% over the past year.

Return vs Market: ORCH underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is ORCH's price volatile compared to industry and market?
ORCH volatility
ORCH Average Weekly Movement1.9%
Diversified Financial Industry Average Movement4.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.5%
10% least volatile stocks in GB Market2.4%

Stable Share Price: ORCH is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ORCH's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200220Ravi Takharhttps://www.orchardfundinggroupplc.com

Orchard Funding Group plc, through its subsidiaries, provides insurance premium finance, professional fee funding, and finance services in the United Kingdom. It offers credit to businesses and consumers to spread the cost of their insurance premiums; and professional customized fee funding solutions to accounting firms, professionals, and small businesses to spread the costs of their professional fees. The company was founded in 2002 and is based in Luton, the United Kingdom.

Orchard Funding Group Fundamentals Summary

How do Orchard Funding Group's earnings and revenue compare to its market cap?
ORCH fundamental statistics
Market CapUK£10.57m
Earnings (TTM)UK£839.00k
Revenue (TTM)UK£4.45m

12.6x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORCH income statement (TTM)
RevenueUK£4.45m
Cost of RevenueUK£603.00k
Gross ProfitUK£3.84m
ExpensesUK£3.01m
EarningsUK£839.00k

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.039
Gross Margin86.44%
Net Profit Margin18.87%
Debt/Equity Ratio77.5%

How did ORCH perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

45.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORCH (£0.5) is trading below our estimate of fair value (£0.9)

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 (12.6x) compared to the UK Diversified Financial industry average (13.4x).

PE vs Market: ORCH is good value based on its PE Ratio (12.6x) compared to the UK market (19.5x).


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 (1.2x).


Future Growth

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

14.6%

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 (0.9%).

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 (14.6% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: ORCH's revenue (14.6% 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


Past Performance

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

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORCH has high quality earnings.

Growing Profit Margin: ORCH's current net profit margins (18.9%) are lower than last year (27.2%).


Past Earnings Growth Analysis

Earnings Trend: ORCH's earnings have declined by 2% 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 (-34.1%) over the past year, making it difficult to compare to the Diversified Financial industry average (-10.1%).


Return on Equity

High ROE: ORCH's Return on Equity (5.3%) is considered low.


Financial Health

How is Orchard Funding Group's financial position?


Financial Position Analysis

Short Term Liabilities: ORCH's short term assets (£32.3M) exceed its short term liabilities (£15.8M).

Long Term Liabilities: ORCH's short term assets (£32.3M) exceed its long term liabilities (£881.0K).


Debt to Equity History and Analysis

Debt Level: ORCH's net debt to equity ratio (63.8%) is considered high.

Reducing Debt: ORCH's debt to equity ratio has increased from 74.8% to 77.5% over the past 5 years.

Debt Coverage: ORCH's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

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

6.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORCH's dividend (6.06%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: ORCH's dividend (6.06%) is in the top 25% of dividend payers in the UK market (4.05%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.3%), ORCH's 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 (48.5% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Ravi Takhar (56 yo)

no data

Tenure

UK£301,000

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 ($USD411.59K) is about average for companies of similar size in the UK market ($USD329.69K).

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


Leadership Team

Experienced Management: ORCH's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: ORCH's board of directors are considered experienced (4.5 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 employee growth, exchange listings and data sources


Key Information

  • Name: Orchard Funding Group plc
  • Ticker: ORCH
  • Exchange: AIM
  • Founded: 2002
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: UK£10.570m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 18:57
End of Day Share Price2022/01/14 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.