Investment Thesis
Orion Properties is in severe financial distress with collapsing profitability (−37.4% net margin), declining revenue (−10.4% YoY), and negative operating cash flow of −$7.7M. The company maintains only $10.3M in cash against $497.3M in long-term debt, creating an acute liquidity crisis with no visible path to operational profitability.
Strengths
- Moderate debt-to-equity ratio of 0.82x suggests leverage is not at extreme levels
- Substantial asset base of $1.2B indicates underlying real estate holdings with potential recoverable value
- Stockholders' equity of $608.5M provides a balance sheet cushion
Risks
- Negative operating cash flow (−$7.7M) and declining revenue (−10.4% YoY) indicate structural business deterioration
- Critically low cash position ($10.3M) against $497.3M long-term debt creates imminent refinancing and covenant compliance risk
- Persistent unprofitability with deteriorating EPS (−34.8% YoY) and operating margin of −37.2% shows no reversal trajectory
- For a REIT structure, negative operating income is fundamentally inconsistent with the real estate income generation model
Key Metrics to Watch
- Operating cash flow trend and quarterly path to positive OCF
- Cash balance adequacy relative to debt maturity schedule and covenant requirements
- Revenue stabilization or growth inflection point
- Debt refinancing ability and credit facility covenant status
Financial Metrics
Revenue
36.3M
Net Income
-13.6M
EPS (Diluted)
$-0.24
Free Cash Flow
-7.7M
Total Assets
1.2B
Cash
10.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-37.2%
Net Margin
-37.4%
ROE
-2.2%
ROA
-1.1%
FCF Margin
-21.3%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.82x
Debt/Assets
48.7%
Interest Coverage
N/A
Long-term Debt
497.3M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T12:16:36.278234 |
Data as of: 2026-03-31 |
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