| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
ORRF Overview
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States.
Orrstown Financial Services Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$22.51 |
| 52 Week High | US$12.40 |
| 52 Week Low | US$25.91 |
| Beta | 1 |
| 1 Month Change | -4.05% |
| 3 Month Change | -8.76% |
| 1 Year Change | 71.70% |
| 3 Year Change | -7.37% |
| 5 Year Change | 5.09% |
| Change since IPO | 161.45% |
Recent News & Updates
Orrstown Financial Services Deserves Your Attention
According to my screener, Orrstown Financial Services is one of the most attractive regional banks out of 349 in the US. I guess that due to the bank's "obscurity", the good 1Q FY2021 report went almost unnoticed. The stock is in a local downtrend ahead of the new 10-Q release, which means it may have room to grow if the results are good (as I expect). My DCF model based on free cash flows to equity ("FCFE") revealed a significant intrinsic undervaluation of almost 75%. I find the ORRF stock quite an attractive idea in the medium and long term for value investors.
Broker Revenue Forecasts For Orrstown Financial Services, Inc. (NASDAQ:ORRF) Are Surging Higher
Orrstown Financial Services, Inc. ( NASDAQ:ORRF ) shareholders will have a reason to smile today, with the analysts...
Shareholder Returns
| ORRF | US Banks | US Market | |
|---|---|---|---|
| 7D | -0.9% | 0.9% | -0.6% |
| 1Y | 71.7% | 63.3% | 33.8% |
Return vs Industry: ORRF exceeded the US Banks industry which returned 63.3% over the past year.
Return vs Market: ORRF exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| ORRF volatility | |
|---|---|
| ORRF Beta | 1 |
| Industry Beta | 1.37 |
| Market Beta | 1 |
Stable Share Price: ORRF is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ORRF's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1919 | 409 | Tom Quinn | https://www.orrstown.com |
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, working capital, construction, and other commercial purpose loans, as well as industrial loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agribusiness loans; acquisition and development loans; municipal loans; and installment and other loans.
Orrstown Financial Services Fundamentals Summary
| ORRF fundamental statistics | |
|---|---|
| Market Cap | US$253.33m |
| Earnings (TTM) | US$34.02m |
| Revenue (TTM) | US$114.20m |
7.4x
P/E Ratio1.0x
P/B RatioIs ORRF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ORRF income statement (TTM) | |
|---|---|
| Revenue | US$114.20m |
| Cost of Revenue | US$0 |
| Gross Profit | US$114.20m |
| Expenses | US$80.18m |
| Earnings | US$34.02m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.10 |
| Gross Margin | 100.00% |
| Net Profit Margin | 29.79% |
| Debt/Equity Ratio | 42.6% |
How did ORRF perform over the long term?
See historical performance and comparisonDividends
3.4%
Current Dividend Yield23%
Payout RatioValuation
Is Orrstown Financial Services undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ORRF ($22.51) is trading below our estimate of fair value ($48.66)
Significantly Below Fair Value: ORRF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ORRF is good value based on its PE Ratio (7.4x) compared to the US Banks industry average (10.8x).
PE vs Market: ORRF is good value based on its PE Ratio (7.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ORRF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ORRF is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.1x).
Future Growth
How is Orrstown Financial Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ORRF's earnings are forecast to decline over the next 3 years (-12.8% per year).
Earnings vs Market: ORRF's earnings are forecast to decline over the next 3 years (-12.8% per year).
High Growth Earnings: ORRF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ORRF's revenue is expected to decline over the next 3 years (-10.3% per year).
High Growth Revenue: ORRF's revenue is forecast to decline over the next 3 years (-10.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ORRF's Return on Equity is forecast to be low in 3 years time (9.2%).
Past Performance
How has Orrstown Financial Services performed over the past 5 years?
33.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ORRF has high quality earnings.
Growing Profit Margin: ORRF's current net profit margins (29.8%) are higher than last year (21.8%).
Past Earnings Growth Analysis
Earnings Trend: ORRF's earnings have grown significantly by 33.4% per year over the past 5 years.
Accelerating Growth: ORRF's earnings growth over the past year (50.8%) exceeds its 5-year average (33.4% per year).
Earnings vs Industry: ORRF earnings growth over the past year (50.8%) exceeded the Banks industry 36%.
Return on Equity
High ROE: ORRF's Return on Equity (12.8%) is considered low.
Financial Health
How is Orrstown Financial Services's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: ORRF's Assets to Equity ratio (11x) is moderate.
Allowance for Bad Loans: ORRF has a sufficient allowance for bad loans (195%).
Low Risk Liabilities: 94% of ORRF's liabilities are made up of primarily low risk sources of funding.
Loan Level: ORRF has an appropriate level of Loans to Assets ratio (66%).
Low Risk Deposits: ORRF's Loans to Deposits ratio (77%) is appropriate.
Level of Bad Loans: ORRF has an appropriate level of bad loans (0.5%).
Dividend
What is Orrstown Financial Services's current dividend yield, its reliability and sustainability?
3.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ORRF's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: ORRF's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: ORRF's dividend payments have been volatile in the past 10 years.
Growing Dividend: ORRF's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.9%), ORRF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ORRF's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Tom Quinn (62 yo)
12.33yrs
Tenure
US$1,739,180
Compensation
Mr. Thomas Rodney Quinn, Jr., also known as Tom, has been the Chief Executive Officer and President at Orrstown Financial Services Inc. since May 5, 2009. Mr. Quinn has been the President and Chief Executi...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD1.74M) is above average for companies of similar size in the US market ($USD1.10M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ORRF's management team is considered experienced (2.4 years average tenure).
Board Members
Experienced Board: ORRF's board of directors are seasoned and experienced ( 10.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ORRF insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Orrstown Financial Services, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Orrstown Financial Services, Inc.
- Ticker: ORRF
- Exchange: NasdaqCM
- Founded: 1919
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$253.326m
- Shares outstanding: 11.25m
- Website: https://www.orrstown.com
Number of Employees
Location
- Orrstown Financial Services, Inc.
- 77 East King Street
- PO Box 250
- Shippensburg
- Pennsylvania
- 17257
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:06 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.