Orchard Funding GroupLSE:ORCH +5.00%50 Gross Margin % is 62.57% as of Jul. 2025, which is 17% below its 10-year median of 75.15. GuruFocus rates LSE:ORCH with a GF Score™ of 50/100 and a GF Value™ of £0.72 (Modestly Undervalued). The stock has 11 warning signs investors should review. Among 387 Credit Services companies, Orchard Funding Group ranks better than 60.47% on this metric.
LSE:ORCH's Gross Margin % is ranked better than 60.47% of 387
companies
in the Credit Services industry
Industry Median: 51.88
vs LSE:ORCH: 60.82
Orchard Funding Group had a gross margin of 62.57% for the quarter that ended in Jul. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Orchard Funding Group was -7.60% per year.
Orchard Funding Group (LSE:ORCH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Orchard Funding Group had a gross margin of 62.57% for the quarter that ended in Jul. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Orchard Funding Group Gross Margin % Related Terms
Orchard Funding Group Gross Margin % Historical Data
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The historical data trend for Orchard Funding Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Orchard Funding Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Orchard Funding Group Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Orchard Funding Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Orchard Funding Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Orchard Funding Group (LSE:ORCH) has a Gross Margin % of 62.57% as of Jul. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Orchard Funding Group and its competitors. This is 17% below median its historical median of 75.15. Over the past decade, Orchard Funding Group's Gross Margin % has ranged from 47.20 to 91.07. According to the industry distribution chart, Orchard Funding Group ranks #153 out of 387 companies in the Credit Services industry, placing it in the top 39.5%.
Is Orchard Funding Group's Gross Margin % too high?
Orchard Funding Group's current Gross Margin % of 62.57% is 17% below median its 10-year median of 75.15. Over the past 10 years, this metric has ranged from a low of 47.20 to a high of 91.07. The Credit Services industry median Gross Margin % is 51.88. Orchard Funding Group's value of 62.57% is 20.6% above this industry median. Based on the distribution chart, Orchard Funding Group ranks #153 out of 387 companies in the Credit Services industry, which is above the industry midpoint. Overall, Orchard Funding Group has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Orchard Funding Group's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Orchard Funding Group ranks #153 out of 387 companies for Gross Margin %. This puts Orchard Funding Group in the upper half of its industry. The industry median Gross Margin % is 51.88. Orchard Funding Group's value of 62.57% is 20.6% above this benchmark. Historically, Orchard Funding Group's own Gross Margin % has ranged from 47.20 to 91.07 over the past decade. While the company's 10-year median is 75.15 vs. the industry median of 51.88, Orchard Funding Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Orchard Funding Group's current Gross Margin % of 62.57% is 20.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Orchard Funding Group and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orchard Funding Group's current Gross Margin % is 62.57%, which is 17% below median its own 10-year median of 75.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orchard Funding Group stock overvalued right now?
Based on GuruFocus' analysis, Orchard Funding Group (LSE:ORCH) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.72, compared to a current price of £0.63 — trading 12.5% below its estimated fair value. The current Gross Margin % is 62.57%, which is 17% below median its 10-year median of 75.15 and 20.6% above the Credit Services industry median of 51.88. Orchard Funding Group's overall GF Score™ is 50/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Orchard Funding Group (LSE:ORCH), the current Gross Margin % is 62.57% as of Jul. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Orchard Funding Group (LSE:ORCH) Overvalued in 2026?
Based on GuruFocus' analysis, Orchard Funding Group stock appears to be undervalued.
The current stock price of £0.63 is trading 12.5% below its estimated GF Value™ of £0.72.
GuruFocus considers Orchard Funding Group to be Modestly Undervalued.
Key valuation signals for LSE:ORCH:
Gross Margin %: 62.57% (17% below median its 10-year median of 75.15)
GF Value™: £0.72 vs. price of £0.63 (12.5% below fair value)
Industry Position: 20.6% above the Credit Services median (#153 of 387)
No single metric tells the full story. See the LSE:ORCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orchard Funding Group PLC is a finance company that specializes in insurance premium finance and the professional fee funding market. The company mainly provides funding and funding support systems to clients of insurance brokers and professional firms. It aims to further increase the capital base to enable it to support higher levels of borrowing. It operates in two segments: lending for Toyota products, and other lending. The company operates within the United Kingdom.
50GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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