ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
NYSE:IX - New York Stock Exchange, Inc. - US6863301015 - ADR - Currency: USD
Overall IX gets a fundamental rating of 4 out of 10. We evaluated IX against 100 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 has a valuation in line with the averages, but it does not seem to be growing. Finally 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.
Each year in the past 5 years IX has been profitable.
In the past 5 years IX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.08%, IX perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
IX's Return On Equity of 8.60% is in line compared to the rest of the industry. IX outperforms 47.00% of its industry peers.
IX's Return On Invested Capital of 2.94% is in line compared to the rest of the industry. IX outperforms 51.00% of its industry peers.
IX had an Average Return On Invested Capital over the past 3 years of 2.75%. This is significantly below the industry average of 11.84%.
The 3 year average ROIC (2.75%) for IX is below the current ROIC(2.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROIC | 2.94% |
ROA(3y)2.03%
ROA(5y)1.94%
ROE(3y)8.52%
ROE(5y)8.3%
ROIC(3y)2.75%
ROIC(5y)2.57%
1.3 Margins
Looking at the Profit Margin, with a value of 12.23%, IX is in line with its industry, outperforming 59.00% of the companies in the same industry.
IX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.00%, IX is doing good in the industry, outperforming 66.00% of the companies in the same industry.
In the last couple of years the Operating Margin of IX has remained more or less at the same level.
IX has a Gross Margin of 42.41%. This is in the better half of the industry: IX outperforms 63.00% of its industry peers.
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 3Y3.42%
OM growth 5Y1.44%
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.
IX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IX has been reduced compared to 5 years ago.
IX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that IX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.59, IX perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that IX has dependencies on debt financing.
IX's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. IX is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.8
WACC3.67%
2.3 Liquidity
IX has a Current Ratio of 0.50. This is a bad value and indicates that IX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.50, IX is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
IX has a Quick Ratio of 0.50. This is a bad value and indicates that IX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IX (0.44) is worse than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
IX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.80%.
Measured over the past years, IX shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.09% on average per year.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.15%.
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%-36.29%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%-7.23%
3.2 Future
IX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.32% yearly.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y25.58%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
EPS Next 5Y15.32%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y6.92%
Revenue Next 5Y6.45%
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 14.22, which indicates a correct valuation of IX.
The rest of the industry has a similar Price/Earnings ratio as IX.
IX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 9.28, the valuation of IX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IX is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of IX to the average of the S&P500 Index (21.90), we can say IX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IX indicates a somewhat cheap valuation: IX is cheaper than 77.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.63 |
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.
IX's earnings are expected to grow with 17.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y23.76%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, IX has a reasonable but not impressive dividend return.
IX's Dividend Yield is rather good when compared to the industry average which is at 4.87. IX pays more dividend than 82.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, IX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of IX is nicely growing with an annual growth rate of 7.63%!
IX has paid a dividend for at least 10 years, which is 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
38.56% 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.
DP38.56%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
NYSE:IX (7/3/2025, 7:39:02 PM)
22.89
+0.07 (+0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners48.32%
Inst Owner Change404.54%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.02B
Analysts75
Price Target26.48 (15.68%)
Short Float %0.03%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend0.82
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)-3.57%
PT rev (3m)1.03%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 9.28 | ||
| P/S | 1.3 | ||
| P/FCF | N/A | ||
| P/OCF | 2.88 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)1.61
EY7.03%
EPS(NY)2.47
Fwd EY10.78%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)7.95
OCFY34.72%
SpS17.57
BVpS25
TBVpS25
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROCE | 4.22% | ||
| ROIC | 2.94% | ||
| ROICexc | 3.26% | ||
| ROICexgc | 4.49% | ||
| 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)2.75%
ROIC(5y)2.57%
ROICexc(3y)3.03%
ROICexc(5y)2.82%
ROICexgc(3y)4.05%
ROICexgc(5y)3.82%
ROCE(3y)3.94%
ROCE(5y)3.67%
ROICexcg growth 3Y6.88%
ROICexcg growth 5Y4.08%
ROICexc growth 3Y6.77%
ROICexc growth 5Y3.25%
OM growth 3Y3.42%
OM growth 5Y1.44%
PM growth 3Y-0.42%
PM growth 5Y-1.63%
GM growth 3Y3.87%
GM growth 5Y1.83%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.64 | ||
| Cap/Depr | 339.82% | ||
| Cap/Sales | 47.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.59 |
F-Score5
WACC3.67%
ROIC/WACC0.8
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%-36.29%
EPS Next Y25.58%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
EPS Next 5Y15.32%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%-7.23%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y6.92%
Revenue Next 5Y6.45%
EBIT growth 1Y-4.51%
EBIT growth 3Y8.05%
EBIT growth 5Y6.26%
EBIT Next Year11292.6%
EBIT Next 3YN/A
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%