ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
30.61 USD
+0.42 (+1.39%)
30.69 USD
+0.08 (+0.26%)
IX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 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 not valued too expensively and it also shows a decent growth rate. 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.
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 67.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.90%, IX is in line with its industry, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.15%, IX is in line with its industry, outperforming 53.06% 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 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 58.16% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
The Operating Margin of IX (19.97%) is better than 68.37% of its industry peers.
IX's Operating Margin has been stable in the last couple of years.
The Gross Margin of IX (42.41%) is better than 63.27% of its industry peers.
In the last couple of years the Gross Margin of IX has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IX is destroying value.
Compared to 1 year ago, IX has less shares outstanding
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
IX has an Altman-Z score of 0.67. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
IX's Altman-Z score of 0.67 is in line compared to the rest of the industry. IX outperforms 56.12% of its industry peers.
IX has a debt to FCF ratio of 3051.64. This is a negative value and a sign of low solvency as IX would need 3051.64 years to pay back of all of its debts.
IX has a worse Debt to FCF ratio (3051.64) than 66.33% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that IX has dependencies on debt financing.
The Debt to Equity ratio of IX (1.47) is worse than 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.86
WACC3.68%
2.3 Liquidity
A Current Ratio of 0.48 indicates that IX may have some problems paying its short term obligations.
IX has a worse Current ratio (0.48) than 61.22% of its industry peers.
A Quick Ratio of 0.43 indicates that IX may have some problems paying its short term obligations.
IX has a Quick ratio of 0.43. This is in the lower half of the industry: IX underperforms 61.22% 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.
The Earnings Per Share has been growing slightly by 5.31% on average over the past years.
Looking at the last year, IX shows a small growth in Revenue. The Revenue has grown by 6.21% in the last 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 10.06% on average per year.
Based on estimates for the next years, IX will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y16.4%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
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
Based on the Price/Earnings ratio of 12.29, the valuation of IX can be described as correct.
IX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, IX is valued rather cheaply.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of IX.
IX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.92. IX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
IX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IX is cheaper than 70.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IX is valued a bit more expensive than the industry average as 66.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2514.37 | ||
| EV/EBITDA | 9.84 |
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)0.75
PEG (5Y)2.32
EPS Next 2Y9.65%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 3.30%.
Compared to an average industry Dividend Yield of 2.49, IX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, IX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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.
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 31.18% 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.
DP31.18%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
30.61
+0.42 (+1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners49.67%
Inst Owner Change0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.09B
Revenue(TTM)3.04T
Net Income(TTM)439.75B
Analysts77.33
Price Target29.8 (-2.65%)
Short Float %0.04%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.76
Dividend Growth(5Y)7.63%
DP31.18%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)4.97%
PT rev (3m)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)7.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.77 | ||
| P/FCF | 2514.37 | ||
| P/OCF | 4.11 | ||
| P/B | 1.21 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)2.49
EY8.13%
EPS(NY)2.64
Fwd EY8.62%
FCF(TTM)0.01
FCFY0.04%
OCF(TTM)7.45
OCFY24.35%
SpS17.29
BVpS25.3
TBVpS17.7
PEG (NY)0.75
PEG (5Y)2.32
Graham Number37.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 9.9% | ||
| ROCE | 4.53% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 4.93% | ||
| OM | 19.97% | ||
| PM (TTM) | 14.49% | ||
| GM | 42.41% | ||
| FCFM | 0.07% |
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Debt/EBITDA | 6.49 | ||
| Cap/Depr | 327.15% | ||
| Cap/Sales | 43.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.12% | ||
| Profit Quality | 0.49% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.67 |
F-Score7
WACC3.68%
ROIC/WACC0.86
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)11.56%
EPS 3Y5.84%
EPS 5Y5.31%
EPS Q2Q%73.73%
EPS Next Y16.4%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.21%
Revenue growth 3Y4.48%
Revenue growth 5Y4.74%
Sales Q2Q%14.43%
Revenue Next Year6.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y1.57%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year12639.7%
EBIT Next 3Y452.28%
EBIT Next 5YN/A
FCF growth 1Y111.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.39%
OCF growth 3Y5.62%
OCF growth 5Y4.52%
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 12.29 and the Price/Book (PB) ratio is 1.21.
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%.