ORRF

Orrstown Financial ServicesNasdaqCM:ORRF Stock Report

Market Cap

US$253.3m

7D

-0.9%

1Y

71.7%

Updated

18 Sep, 2021

Data

Company Financials +
ORRF fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Orrstown Financial Services
Historical stock prices
Current Share PriceUS$22.51
52 Week HighUS$12.40
52 Week LowUS$25.91
Beta1
1 Month Change-4.05%
3 Month Change-8.76%
1 Year Change71.70%
3 Year Change-7.37%
5 Year Change5.09%
Change since IPO161.45%

Recent News & Updates

Jul 05

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.

Jun 29
Broker Revenue Forecasts For Orrstown Financial Services, Inc. (NASDAQ:ORRF) Are Surging Higher

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

ORRFUS BanksUS Market
7D-0.9%0.9%-0.6%
1Y71.7%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

Is ORRF's price volatile compared to industry and market?
ORRF volatility
ORRF Beta1
Industry Beta1.37
Market Beta1

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

FoundedEmployeesCEOWebsite
1919409Tom Quinnhttps://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

How do Orrstown Financial Services's earnings and revenue compare to its market cap?
ORRF fundamental statistics
Market CapUS$253.33m
Earnings (TTM)US$34.02m
Revenue (TTM)US$114.20m

7.4x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORRF income statement (TTM)
RevenueUS$114.20m
Cost of RevenueUS$0
Gross ProfitUS$114.20m
ExpensesUS$80.18m
EarningsUS$34.02m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.10
Gross Margin100.00%
Net Profit Margin29.79%
Debt/Equity Ratio42.6%

How did ORRF perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

23%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:06
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.