Orchid Island EBITDA vs. Return On Equity
| ORC Stock | USD 7.79 0.13 1.64% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 162.7 M | Current Value 170.8 M | Quarterly Volatility 84.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.88 | 1.07 |
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For Orchid Island profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Orchid Island to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Orchid Island Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Orchid Island's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Orchid Island Capital over time as well as its relative position and ranking within its peers.
Orchid |
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Orchid Island. If investors know Orchid will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Orchid Island listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.179 | Dividend Share 1.44 | Earnings Share 1.22 | Revenue Per Share 1.292 | Quarterly Revenue Growth 1.755 |
The market value of Orchid Island Capital is measured differently than its book value, which is the value of Orchid that is recorded on the company's balance sheet. Investors also form their own opinion of Orchid Island's value that differs from its market value or its book value, called intrinsic value, which is Orchid Island's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Orchid Island's market value can be influenced by many factors that don't directly affect Orchid Island's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Orchid Island's value and its price as these two are different measures arrived at by different means. Investors typically determine if Orchid Island is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Orchid Island's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Orchid Island Capital Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Orchid Island's current stock value. Our valuation model uses many indicators to compare Orchid Island value to that of its competitors to determine the firm's financial worth. Orchid Island Capital is rated below average in ebitda category among its peers. It is regarded fourth in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Orchid Island Capital is about 1,542,104,265 . At present, Orchid Island's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Orchid Island's earnings, one of the primary drivers of an investment's value.Orchid Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Orchid Island |
| = | 162.69 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Orchid Island |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Orchid Return On Equity Comparison
Orchid Island is currently under evaluation in return on equity category among its peers.
Orchid Island Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Orchid Island, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Orchid Island will eventually generate negative long term returns. The profitability progress is the general direction of Orchid Island's change in net profit over the period of time. It can combine multiple indicators of Orchid Island, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 17 K | 16.1 K | |
| Operating Income | 162.7 M | 170.8 M | |
| Net Loss | -39.2 M | -41.2 M | |
| Income Tax Expense | -39.2 M | -41.2 M | |
| Net Loss | -31.4 M | -33 M | |
| Income Before Tax | -39.2 M | -41.2 M | |
| Non Operating Income Net Other | -168.3 M | -159.9 M | |
| Total Other Income Expense Net | -39.2 M | -41.2 M | |
| Net Loss | -232.6 M | -221 M | |
| Net Interest Income | -19.2 M | -18.2 M | |
| Interest Income | 159.9 M | 149.2 M | |
| Change To Netincome | 611.4 M | 642 M | |
| Net Loss | (0.88) | (0.92) | |
| Income Quality | (0.20) | (0.19) |
Orchid Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Orchid Island. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Orchid Island position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Orchid Island's important profitability drivers and their relationship over time.
Use Orchid Island in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Orchid Island position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Orchid Island will appreciate offsetting losses from the drop in the long position's value.Orchid Island Pair Trading
Orchid Island Capital Pair Trading Analysis
The ability to find closely correlated positions to Orchid Island could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Orchid Island when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Orchid Island - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Orchid Island Capital to buy it.
The correlation of Orchid Island is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Orchid Island moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Orchid Island Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Orchid Island can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Orchid Island position
In addition to having Orchid Island in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Orchid Island's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Orchid Island Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Orchid Island's income statement, its balance sheet, and the statement of cash flows.