Orchid Island Capital, Inc. (ORC) AI Stock Analysis

Orchid Island Capital, Inc. is a Vero Beach, Florida-based specialty finance company that invests in residential mortgage-backed securities (RMBS) within the United States. Its portfolio primarily consists of single-family Agency RMBS secured by residential mortgages guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. The company holds traditional pass-through securities, including mortgage pass-through certificates and collateralized mortgage obligations (CMOs), alongside structured Agency RMBS such as interest-only, inverse interest-only, and principal-only securities. Operating as a real estate investment trust founded in 2010, the company is structured to distribute at least 90% of its taxable income to shareholders as dividends.

Orchid Island Capital saw revenue rebound to $179.5M in FY2025 with 229.9% annual growth and net income of $159.0M, following negative revenue of -$49.5M in FY2021, -$237.7M in FY2022, and -$20.7M in FY2023, alongside positive revenue of $54.4M in FY2024. Operating margin was 88.6% in FY2025, compared to 503.5% in FY2024 and -786.1% in FY2023. Over the trailing twelve months, revenue reached $270.1M with an operating margin of 93.0% and EPS of $1.64. For the latest quarter ending June 30, 2026, quarterly revenue grew 1003.1% year-over-year, while quarterly earnings expanded 793.8%.

As of June 30, 2026, Orchid Island Capital held $813.6M in cash and short-term investments against total assets of $13.10B. Total debt stood at $11.58B, leading to net debt of $10.77B and a debt-to-equity ratio of 8.04 relative to $1.44B in shareholders' equity. The company reported a current ratio of 0.07. Free cash flow was $120.4M in FY2025. During FY2025, the company deployed $7.4M to share buybacks and paid $178.9M in dividends, while its 5-year share count change expanded 497.5%.

At a last close of $4.97, Orchid Island Capital has a market capitalization of $981.1M and an enterprise value of $10.89B. It trades at a trailing P/E of 3.0x and a forward P/E of 5.9x, both below the median of its US-listed Real Estate peers at 21.6x and 23.5x, respectively. Its price-to-sales ratio is 3.6x versus the peer median of 3.7x, with a price-to-book multiple of 0.8x. Over the past year, the stock fell 17.8% while the S&P 500 gained 16.8%, and over five years it fell 50.3% compared to an 83.0% gain for the index.

Orchid Island Capital pays a monthly dividend with a forward annual payout of $1.20 per share, delivering a dividend yield of 24.14% and a payout ratio of 78.4%. The company has paid dividends for 14 consecutive years. Its 5-year annualized dividend growth rate declined 18.3%. The stock's last ex-dividend date was October 30, 2026.

Consensus coverage consists of 4 Hold ratings, with 0 Strong Buy, 0 Buy, 0 Sell, and 0 Strong Sell ratings. The mean price target is $7.50, which sits 50.9% above the last close of $4.97. For the fiscal year ending December 31, 2026, analysts expect EPS of $1.11 on revenue of $235.8M. Over the last four quarters, the company exceeded EPS estimates in 2 quarters. The next earnings date is October 22, 2026.

This page is an AI-written research summary of Orchid Island Capital, Inc. (ORC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ORC income statement, ORC balance sheet, ORC key metrics, ORC analyst forecast, ORC chart. See the ORC stock overview for the latest quote and news.