Is ORC a high-quality business?

AlphaMadera's AlphaQuality grade scores Orchid Island Capital, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ORC compares to a Buffett-style quality bar.

What is Orchid Island Capital, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ORC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ORC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ORC - Orchid Island Capital, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $7.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a real estate investment trust business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

A+ 100.0

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 88.6% 100/100

Capital Efficiency

Weight: 15%

F 3.4

5yr Avg ROE -2.4% 5/100
5yr Share-Count CAGR 51.7% 0/100

Growth Quality

Weight: 15%

A- 82.0

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 115.4% 100/100
Positive-FFO Years (5) 2/5 40/100

Cash Generation

Weight: 15%

D- 28.7

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI 1.27x 96/100

Balance Sheet

Weight: 25%

F 7.1

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 87.7% 0/100
Interest Coverage (EBIT/Int) 1.52x 20/100

Stability

Weight: 10%

D 35.0

EPS Volatility (σ/μ) 1.02 0/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3
Avg Δ position: +50.2%
New buys: 0
Full exits: 0

Wood increased +137%
Greenblatt increased +54%
Cooperman decreased -40%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.