ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
NYSE:IX - New York Stock Exchange, Inc. - US6863301015 - ADR
IX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IX was profitable.
IX had a positive operating cash flow in the past year.
In the past 5 years IX has always been profitable.
IX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IX has a Return On Assets (2.45%) which is comparable to the rest of the industry.
IX has a Return On Equity (10.28%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, IX is in line with its industry, outperforming 53.47% of the companies in the same industry.
IX had an Average Return On Invested Capital over the past 3 years of 2.63%. This is significantly below the industry average of 7.84%.
The 3 year average ROIC (2.63%) for IX is below the current ROIC(3.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROIC | 3.34% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
1.3 Margins
IX has a Profit Margin of 14.03%. This is comparable to the rest of the industry: IX outperforms 59.41% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
IX's Operating Margin of 20.88% is fine compared to the rest of the industry. IX outperforms 66.34% of its industry peers.
In the last couple of years the Operating Margin of IX has grown nicely.
IX's Gross Margin of 43.39% is fine compared to the rest of the industry. IX outperforms 65.35% of its industry peers.
IX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% |
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
2. Health
2.1 Basic Checks
IX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
IX has a worse debt/assets ratio than last year.
2.2 Solvency
IX has an Altman-Z score of 0.62. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IX (0.62) is comparable to the rest of the industry.
IX has a debt to FCF ratio of 454.61. This is a negative value and a sign of low solvency as IX would need 454.61 years to pay back of all of its debts.
IX has a worse Debt to FCF ratio (454.61) than 64.36% of its industry peers.
IX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
IX has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: IX underperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.59
WACC5.66%
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's Current ratio of 0.48 is on the low side compared to the rest of the industry. IX is outperformed by 65.35% of its industry peers.
A Quick Ratio of 0.43 indicates that IX may have some problems paying 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 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
IX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.62%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.36% on average over the past years.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.52%.
IX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.94% yearly.
EPS 1Y (TTM)37.62%
EPS 3Y24.25%
EPS 5Y3.36%
EPS Q2Q%49.9%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y7.07%
Revenue growth 5Y2.94%
Sales Q2Q%1.86%
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 12.11% on average per year.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y18.51%
EPS Next 2Y13.66%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.28%
Revenue Next 3Y5.6%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 9.39, which indicates a very decent valuation of IX.
Based on the Price/Earnings ratio, IX is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, IX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.71 indicates a reasonable valuation of IX.
Based on the Price/Forward Earnings ratio, IX is valued a bit cheaper than the industry average as 66.34% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. IX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
64.36% of the companies in the same industry are cheaper than IX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 273.09 | ||
| EV/EBITDA | 8.08 |
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.
The decent profitability rating of IX may justify a higher PE ratio.
A more expensive valuation may be justified as IX's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)0.51
PEG (5Y)2.8
EPS Next 2Y13.66%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 3.66, IX pays a better dividend. On top of this IX pays more dividend than 84.16% of the companies listed in the same industry.
IX's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of IX has a limited annual growth rate of 4.50%.
IX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IX decreased recently.
Dividend Growth(5Y)4.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
28.45% 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.
DP28.45%
EPS Next 2Y13.66%
EPS Next 3Y12.11%
ORIX - SPONSORED ADR
NYSE:IX (1/22/2025, 11:36:09 AM)
After market: 102.8 -3.13 (-2.95%)105.93
-0.05 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change-0.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.07B
Analysts76
Price Target112.34 (6.05%)
Short Float %0.06%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend86.05
Dividend Growth(5Y)4.5%
DP28.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)-2.05%
PT rev (3m)-11.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.71 | ||
| P/S | 1.31 | ||
| P/FCF | 273.09 | ||
| P/OCF | 2.99 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)11.28
EY10.65%
EPS(NY)12.17
Fwd EY11.49%
FCF(TTM)0.39
FCFY0.37%
OCF(TTM)35.4
OCFY33.42%
SpS80.79
BVpS110.29
TBVpS110.29
PEG (NY)0.51
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 5.04% | ||
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% | ||
| FCFM | 0.48% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
ROICexc(3y)2.88%
ROICexc(5y)2.77%
ROICexgc(3y)3.84%
ROICexgc(5y)3.72%
ROCE(3y)3.69%
ROCE(5y)3.53%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y0.24%
ROICexc growth 3Y9.07%
ROICexc growth 5Y-1.79%
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
F-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 320.46% | ||
| Cap/Sales | 43.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.37% | ||
| Profit Quality | 3.42% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.62 |
F-Score9
WACC5.66%
ROIC/WACC0.59
Cap/Depr(3y)304.32%
Cap/Depr(5y)295.6%
Cap/Sales(3y)39.87%
Cap/Sales(5y)39.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.62%
EPS 3Y24.25%
EPS 5Y3.36%
EPS Q2Q%49.9%
EPS Next Y18.51%
EPS Next 2Y13.66%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue 1Y (TTM)7.52%
Revenue growth 3Y7.07%
Revenue growth 5Y2.94%
Sales Q2Q%1.86%
Revenue Next Year5.66%
Revenue Next 2Y6.28%
Revenue Next 3Y5.6%
Revenue Next 5YN/A
EBIT growth 1Y11.71%
EBIT growth 3Y16.64%
EBIT growth 5Y5%
EBIT Next Year12227.6%
EBIT Next 3Y435.63%
EBIT Next 5YN/A
FCF growth 1Y107.51%
FCF growth 3Y-50.07%
FCF growth 5YN/A
OCF growth 1Y62%
OCF growth 3Y4.31%
OCF growth 5Y16.17%