ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
29.95 USD
-0.43 (-1.42%)
29.95 USD
0 (0%)
Overall IX gets a fundamental rating of 5 out of 10. We evaluated IX against 97 industry peers in the Financial Services industry. There are concerns on the financial health of IX while its profitability can be described as average. IX has a correct valuation and a medium growth rate. IX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- IX had positive earnings in the past year.
- IX had a positive operating cash flow in the past year.
- IX had positive earnings in each of the past 5 years.
- In the past 5 years IX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.50%, IX is in the better half of the industry, outperforming 67.01% of the companies in the same industry.
- With a Return On Equity value of 9.90%, IX perfoms like the industry average, outperforming 56.70% of the companies in the same industry.
- IX has a Return On Invested Capital (3.15%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for IX is significantly below the industry average of 8.44%.
- The last Return On Invested Capital (3.15%) for IX is above the 3 year average (2.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 9.9% | ||
| ROIC | 3.15% |
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 has a Profit Margin of 14.49%. This is comparable to the rest of the industry: IX outperforms 57.73% of its industry peers.
- In the last couple of years the Profit Margin of IX has declined.
- IX's Operating Margin of 19.97% is fine compared to the rest of the industry. IX outperforms 68.04% of its industry peers.
- In the last couple of years the Operating Margin of IX has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 42.41%, IX is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
- IX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.97% | ||
| PM (TTM) | 14.49% | ||
| 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.
- Compared to 5 years ago, IX has less shares outstanding
- IX has a better debt/assets ratio than last year.
2.2 Solvency
- IX has an Altman-Z score of 0.66. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.66, IX perfoms like the industry average, outperforming 54.64% of the companies in the same industry.
- The Debt to FCF ratio of IX is 3051.64, which is on the high side as it means it would take IX, 3051.64 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 3051.64, IX is not doing good in the industry: 67.01% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that IX has dependencies on debt financing.
- IX has a worse Debt to Equity ratio (1.47) than 62.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.86
WACC3.68%
2.3 Liquidity
- IX has a Current Ratio of 0.48. 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 worse Current ratio (0.48) than 61.86% of its industry peers.
- IX has a Quick Ratio of 0.48. 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 0.43 is on the low side compared to the rest of the industry. IX is outperformed by 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.56% over the past year.
- Measured over the past 5 years, IX shows a small growth in Earnings Per Share. The EPS has been growing by 5.31% on average per year.
- The Revenue has been growing slightly by 6.21% in the past year.
- The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)11.56%
EPS 3Y5.84%
EPS 5Y5.31%
EPS Q2Q%73.73%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y4.48%
Revenue growth 5Y4.74%
Sales Q2Q%14.43%
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 11.20% on average per year.
- The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y17.52%
EPS Next 2Y9.9%
EPS Next 3Y11.2%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.08, 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 cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.32, the valuation of IX can be described as very reasonable.
- IX's Price/Forward Earnings ratio is in line with the industry average.
- IX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than the industry average as 70.10% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IX indicates a slightly more expensive valuation: IX is more expensive than 67.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2463.18 | ||
| EV/EBITDA | 9.73 |
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.
- IX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)2.28
EPS Next 2Y9.9%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
- IX has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.24, IX pays a bit more dividend than its industry peers.
- IX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
- 31.18% of the earnings are spent on dividend by IX. This is a low number and sustainable payout ratio.
- The dividend of IX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.18%
EPS Next 2Y9.9%
EPS Next 3Y11.2%
ORIX - SPONSORED ADR / IX FAQ
What is the ChartMill fundamental rating of ORIX - SPONSORED ADR (IX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to IX.
Can you provide the valuation status for ORIX - SPONSORED ADR?
ChartMill assigns a valuation rating of 5 / 10 to ORIX - SPONSORED ADR (IX). This can be considered as Fairly Valued.
Can you provide the profitability details for ORIX - SPONSORED ADR?
ORIX - SPONSORED ADR (IX) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for IX stock?
The Price/Earnings (PE) ratio for ORIX - SPONSORED ADR (IX) is 12.08 and the Price/Book (PB) ratio is 1.19.
How sustainable is the dividend of ORIX - SPONSORED ADR (IX) stock?
The dividend rating of ORIX - SPONSORED ADR (IX) is 7 / 10 and the dividend payout ratio is 31.18%.