ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - NYSE:IX - US6863301015 - ADR
24.49 USD
+0.27 (+1.11%)
24.49 USD
0 (0%)
Overall IX gets a fundamental rating of 4 out of 10. We evaluated IX against 99 industry peers in the Financial Services industry. While IX is still in line with the averages on profitability rating, there are concerns on its financial health. IX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IX was profitable.
IX had a positive operating cash flow in the past year.
IX had positive earnings in each of the past 5 years.
IX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IX has a Return On Assets of 2.08%. This is comparable to the rest of the industry: IX outperforms 57.58% of its industry peers.
Looking at the Return On Equity, with a value of 8.60%, IX is in line with its industry, outperforming 48.48% of the companies in the same industry.
IX has a Return On Invested Capital of 2.59%. This is comparable to the rest of the industry: IX outperforms 52.53% of 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 7.80%.
| 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
IX's Profit Margin of 12.23% is in line compared to the rest of the industry. IX outperforms 58.59% of its industry peers.
IX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.00%, IX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
IX's Operating Margin has been stable in the last couple of years.
The Gross Margin of IX (42.41%) is better than 62.63% of its industry peers.
In the last couple of years the Gross Margin of IX has grown nicely.
| 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.
Compared to 1 year ago, IX has less shares outstanding
Compared to 5 years ago, IX has less shares outstanding
The debt/assets ratio for IX has been reduced compared to a year ago.
2.2 Solvency
IX has an Altman-Z score of 0.74. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.74, IX is in line with its industry, outperforming 52.53% of the companies in the same industry.
IX has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IX (1.54) is worse than 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.71
WACC3.67%
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's Current ratio of 0.94 is in line compared to the rest of the industry. IX outperforms 44.44% of its industry peers.
IX has a Quick 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's Quick ratio of 0.83 is in line compared to the rest of the industry. IX outperforms 43.43% of its industry peers.
| 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%.
IX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.43% yearly.
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
The Earnings Per Share is expected to grow by 14.44% on average over the next years. This is quite good.
Based on estimates for the next years, IX will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y16.74%
EPS Next 5Y14.44%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.15%
Revenue Next 5Y5.88%
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
Based on the Price/Earnings ratio of 11.34, the valuation of IX can be described as reasonable.
IX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.19. IX is valued rather cheaply when compared to this.
IX is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.50. IX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IX's earnings are expected to grow with 16.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y16.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, IX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.08, IX pays a bit more dividend than its industry peers.
IX's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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.
The dividend of IX decreased 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.
IX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.56%
EPS Next 2Y21.71%
EPS Next 3Y16.74%
24.49
+0.27 (+1.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners46.25%
Inst Owner Change-0.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.31B
Revenue(TTM)2935.32B
Net Income(TTM)351.60B
Analysts77.33
Price Target28.97 (18.29%)
Short Float %0.03%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.79
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)0%
PT rev (3m)8.96%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0.73%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.47 | ||
| P/FCF | N/A | ||
| P/OCF | 3.24 | ||
| P/B | 1.03 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)2.16
EY8.82%
EPS(NY)2.26
Fwd EY9.23%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)7.55
OCFY30.83%
SpS16.69
BVpS23.75
TBVpS17.09
PEG (NY)0.44
PEG (5Y)N/A
Graham Number33.97
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 | 0.74 |
F-Score6
WACC3.67%
ROIC/WACC0.71
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 3Y16.74%
EPS Next 5Y14.44%
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 3Y7.15%
Revenue Next 5Y5.88%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11267.6%
EBIT Next 3Y431.31%
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 5 / 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.