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ORRF

NEUTRAL
$38.45 Live
Orrstown Financial Services, Inc. · NASDAQ
Target $42.0 (+9.2%)
$26.56 52W Range $40.72

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AI Analysis

AI-powered fundamental assessment

Confidence
80%
ORRF presents a stark contradiction between deep value and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the stock trades at a significant discount to its Graham Number ($53.4) and Intrinsic Value ($123.31), the low health score and bearish insider activity (CEO selling) suggest underlying risks. These concerns are offset by an exceptional earnings track record and explosive YoY earnings growth of 55.9%. Consequently, the stock is a high-reward value play tempered by significant fundamental red flags.

Key Strengths

Deep value valuation trading well below Graham Number ($53.4)
Exceptional earnings growth (55.9% YoY) and consistent EPS beats over 25 quarters
Low P/E ratio (9.20) relative to sector averages
Highly sustainable dividend payout ratio (25.36%)
Strong profitability margins (Operating Margin 47.07%)

Key Risks

Weak Piotroski F-Score (3/9) indicating deteriorating financial health trends
Bearish insider sentiment with recent sales by the CEO and other officers
Very weak technical trend (10/100) suggesting strong downward momentum
Concentration risk inherent to regional banking sector
Low analyst coverage (only 3 analysts) reducing the reliability of the 'Strong Buy' consensus
AI Fair Value Estimate
Based on comprehensive analysis
$55.0
+43.0% above current price

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