Orion Group Holdings carries a debt of 66.56 million, with a debt to equity (D/E) ratio of 0.59. This is acceptable within its current industry classification. The company has a current ratio of 1.16, indicating that it may struggle to meet its financial obligations when they are due. While debt can be beneficial for Orion Group as long as it can manage repayment, either through new capital or free cash flow, there is a risk. If Orion Group fails to meet its legal debt repayment obligations, shareholders could potentially lose their entire investment.
However, a more common scenario is when companies like Orion Group Holdings issue additional shares at low prices, thereby diluting the value of existing shares. In such instances, debt can be a more effective tool for Orion Group to invest in high-return growth opportunities. When evaluating Orion Group's use of debt, it is important to consider it in conjunction with cash and equity.
We provide trading recommendations to supplement the recent expert consensus on Orion Group Holdings. Our advanced recommendation engine uses a multidimensional algorithm to analyze the company's growth potential, utilizing all available technical and fundamental data.
Advanced assessment of Orion
Orion Group Holdings (ORN) presents a potential buying opportunity as shares have dipped by over 2%. The company's valuation looks attractive with a Price to Earnings (P/E) ratio of 4.01X, which is relatively low compared to industry peers. Despite reporting a loss of $12.6 million in net income, the company's current valuation stands at $184.86 million, indicating potential for growth. It's also worth noting that the company has a solid asset base with a net asset value of
$367.15 million. Furthermore, the company's cash flow from operations is positive at $9.56 million, providing some financial stability. However, investors should also consider the company's high probability of bankruptcy at 28.13% before making an investment decision.
We determine the current worth of Orion Group Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Orion Group Holdings based exclusively on its
fundamental and basic
technical indicators. By analyzing Orion Group's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Orion Group's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Orion Group. We calculate exposure to Orion Group's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Orion Group's related companies.
Orion Group Holdings Investment Alerts
Orion investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Orion Group Holdings performance across your portfolios.Please check all
investment alerts for Orion
Orion Group Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Orion value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Orion Group competition to find
correlations between indicators driving the intrinsic value of Orion.
A Deeper Perspective
The recent roll up in Orion Group short term price appreciation may encourage insiders to take a closer look at the company as it is trading at a share price of
3.09 on very low momentum in trading volume. The company management teams have successfully maneuvered the company at convenient times to take advantage of all market conditions in
June. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.05. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Orion Group partners.
| 2020 | 2021 | 2022 | 2023 (projected) |
Interest Expense | 4.92 M | 5.08 M | 4.46 M | 4.78 M | Gross Profit | 84.7 M | 40.97 M | 50.74 M | 53.97 M |
Margins Breakdown
Orion profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Orion Group itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Orion Group profit margins.
| Operating Margin | (1.87) |
| EBITDA Margin | 0.0303 |
| Gross Margin | 0.0683 |
| Profit Margin | (0.0183) |
Orion Group Net Income Per Employee is decreasing over the last 8 years. The previous year's value of Orion Group Net Income Per Employee was -6,140. Also, Orion Group Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The recent value of Orion Group Earnings Before Interest Taxes and Depreciation Amortization USD is 22,937,421.
Orion Group Holdings, a key player in the Engineering & Construction industry, recently experienced a 2% dip in its share price, presenting a potential buying opportunity for investors. Despite the company's struggles, including a net loss of $12.2M and a negative return on equity of 0.15, Orion's shares are trading at a compelling price-to-book ratio of 0.5659, significantly lower than the industry average. Orion's balance sheet remains robust with property, plant, and equipment net valued at $131.8M and intangible assets worth $7.3M. The company also has a manageable short and long-term debt total of $66.6M, with a debt to equity ratio of 0.58%, suggesting a relatively low risk profile. Furthermore, Orion has managed to generate positive cash flow from operations amounting to $9.56M, despite a decrease in working capital of $5.2M. Its end period cash flow stands at $3.8M, down from the beginning period cash flow of $12.3M. Notably, Orion's shares are trading well below Wall Street's target price of $4.67, indicating potential upside. The company's market capitalization stands at
$99.42M, with a total of
32.17M shares outstanding. With over 10% of shares owned by insiders, the company's management has a vested interest in its success. Despite the recent dip, Orion Group Holdings could be a valuable addition to an investor's portfolio. .
How will Orion insiders react to the next decline?
Orion Group Holdings stock has seen a significant decrease in its value at risk, currently standing at -3.53. This marked shift may prompt insiders at Orion to reevaluate their stakes, as the reduced value at risk suggests a diminished potential for substantial losses. Given the
current market conditions, it's conceivable that insiders may view this as an opportune moment to purchase more shares, banking on a potential recovery. Conversely, they might interpret this as a signal to decrease their holdings if they foresee further drops. The insiders' response to this change will indeed be a revealing indicator of the company's future direction. At present, Orion Group Holdings exhibits a below-average downside deviation. It has an Information Ratio of 0.09 and a Jensen Alpha of 0.27. However, we recommend investors to further scrutinize Orion Group Holdings' expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding various
market volatility trends often assists investors in timing the market.
Correctly utilizing volatility indicators allows traders to gauge Orion Group's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect
Orion Group's stock price, adding stress to investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of the recent -2% decline in Orion Group Holdings' stock, it's crucial to consider the company's valuation and analyst consensus. Despite the dip, the stock holds a
Valuation Real Value of 3.8 and a
Valuation Market Value of 3.09, suggesting potential undervaluation. Furthermore, with an Analyst Overall Consensus rating of 'Buy' and an Analyst Target Price Estimated Value of 4.666, there's a clear indication of potential upside. The Analyst Number of Estimates stands at 3, with the highest estimated target price at 6, further reinforcing the stock's potential. While there is one hold and one strong buy among these estimates, the consensus leans towards a positive outlook. Therefore, despite the recent decline, Orion Group Holdings may present a valuable investment opportunity. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Orion Group Holdings. Please refer to our
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