ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
28.84 USD
-0.08 (-0.28%)
28.84 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to IX. IX was compared to 99 industry peers in the Financial Services industry. IX has a medium profitability rating, but doesn't score so well on its financial health evaluation. IX is valued correctly, but it does not seem to be growing. IX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IX had positive earnings in the past year.
In the past year IX had a positive cash flow from operations.
Each year in the past 5 years IX has been profitable.
IX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IX's Return On Assets of 2.08% is fine compared to the rest of the industry. IX outperforms 62.63% of its industry peers.
With a Return On Equity value of 8.60%, IX perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
IX has a Return On Invested Capital (2.59%) which is in line with its industry peers.
IX had an Average Return On Invested Capital over the past 3 years of 2.63%. This is significantly below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROIC | 2.59% |
ROA(3y)2.03%
ROA(5y)1.94%
ROE(3y)8.52%
ROE(5y)8.3%
ROIC(3y)2.63%
ROIC(5y)2.49%
1.3 Margins
The Profit Margin of IX (12.23%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IX has declined.
IX has a better Operating Margin (19.00%) than 66.67% of its industry peers.
IX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 42.41%, IX is doing good in the industry, outperforming 63.64% of the companies in the same industry.
IX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19% | ||
| PM (TTM) | 12.23% | ||
| GM | 42.41% |
OM growth 3Y3.26%
OM growth 5Y1.35%
PM growth 3Y-0.42%
PM growth 5Y-1.63%
GM growth 3Y3.87%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IX is destroying value.
The number of shares outstanding for IX has been reduced compared to 1 year ago.
IX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that IX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IX (0.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that IX has dependencies on debt financing.
The Debt to Equity ratio of IX (1.54) is worse than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.7
WACC3.68%
2.3 Liquidity
IX has a Current Ratio of 0.94. This is a bad value and indicates that IX is not financially healthy enough and could expect problems in meeting its short term obligations.
IX has a Current ratio of 0.94. This is comparable to the rest of the industry: IX outperforms 46.46% of its industry peers.
A Quick Ratio of 0.83 indicates that IX may have some problems paying its short term obligations.
The Quick ratio of IX (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for IX have decreased strongly by -10.80% in the last year.
IX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.09% yearly.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
The Revenue has been decreasing by -1.43% on average over the past years.
EPS 1Y (TTM)-10.8%
EPS 3Y-0.85%
EPS 5Y-1.09%
EPS Q2Q%25.45%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.73%
3.2 Future
Based on estimates for the next years, IX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.58% on average per year.
IX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y19.91%
EPS Next 5Y14.58%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.17%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.54, IX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of IX is on the same level as its industry peers.
IX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.97, the valuation of IX can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as IX.
IX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
IX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IX's earnings are expected to grow with 19.91% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y19.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, IX has a reasonable but not impressive dividend return.
IX's Dividend Yield is a higher than the industry average which is at 2.43.
IX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
On average, the dividend of IX grows each year by 7.63%, which is quite nice.
IX has been paying a dividend for at least 10 years, so it has a reliable track record.
IX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IX pays out 38.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of IX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.56%
EPS Next 2Y21.71%
EPS Next 3Y19.91%
28.84
-0.08 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners49.84%
Inst Owner Change1.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.12B
Revenue(TTM)2.94T
Net Income(TTM)351.60B
Analysts77.33
Price Target29.8 (3.33%)
Short Float %0.04%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.77
Dividend Growth(5Y)7.63%
DP38.56%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.62%
Min EPS beat(2)-26.43%
Max EPS beat(2)-6.82%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.83%
Min Revenue beat(2)-9.12%
Max Revenue beat(2)-8.55%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.03%
PT rev (3m)2.86%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)4.78%
EPS NY rev (3m)9.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.97 | ||
| P/S | 1.76 | ||
| P/FCF | N/A | ||
| P/OCF | 3.88 | ||
| P/B | 1.23 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)2.13
EY7.39%
EPS(NY)2.22
Fwd EY7.71%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)7.43
OCFY25.75%
SpS16.42
BVpS23.36
TBVpS16.81
PEG (NY)0.53
PEG (5Y)N/A
Graham Number33.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROCE | 3.7% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.72% | ||
| OM | 19% | ||
| PM (TTM) | 12.23% | ||
| GM | 42.41% | ||
| FCFM | N/A |
ROA(3y)2.03%
ROA(5y)1.94%
ROE(3y)8.52%
ROE(5y)8.3%
ROIC(3y)2.63%
ROIC(5y)2.49%
ROICexc(3y)2.88%
ROICexc(5y)2.73%
ROICexgc(3y)3.79%
ROICexgc(5y)3.66%
ROCE(3y)3.76%
ROCE(5y)3.56%
ROICexgc growth 3Y0.25%
ROICexgc growth 5Y0.16%
ROICexc growth 3Y1.76%
ROICexc growth 5Y0.31%
OM growth 3Y3.26%
OM growth 5Y1.35%
PM growth 3Y-0.42%
PM growth 5Y-1.63%
GM growth 3Y3.87%
GM growth 5Y1.83%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.65 | ||
| Cap/Depr | 339.82% | ||
| Cap/Sales | 47.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.78 |
F-Score6
WACC3.68%
ROIC/WACC0.7
Cap/Depr(3y)325.04%
Cap/Depr(5y)298.28%
Cap/Sales(3y)43.48%
Cap/Sales(5y)39.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.8%
EPS 3Y-0.85%
EPS 5Y-1.09%
EPS Q2Q%25.45%
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y19.91%
EPS Next 5Y14.58%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.73%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.17%
Revenue Next 5Y6%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11502.8%
EBIT Next 3Y434.33%
EBIT Next 5YN/A
FCF growth 1Y-235.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.57%
OCF growth 3Y5.62%
OCF growth 5Y4.52%
ORIX - SPONSORED ADR / IX FAQ
Can you provide the ChartMill fundamental rating for ORIX - SPONSORED ADR?
ChartMill assigns a fundamental rating of 4 / 10 to IX.
What is the valuation status of ORIX - SPONSORED ADR (IX) stock?
ChartMill assigns a valuation rating of 4 / 10 to ORIX - SPONSORED ADR (IX). This can be considered as Fairly Valued.
What is the profitability of IX stock?
ORIX - SPONSORED ADR (IX) has a profitability rating of 5 / 10.
What is the financial health of ORIX - SPONSORED ADR (IX) stock?
The financial health rating of ORIX - SPONSORED ADR (IX) is 2 / 10.
Can you provide the expected EPS growth for IX stock?
The Earnings per Share (EPS) of ORIX - SPONSORED ADR (IX) is expected to grow by 25.58% in the next year.