ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
30.29 USD
+0.34 (+1.14%)
30.29 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. While IX is still in line with the averages on profitability rating, there are concerns on its financial health. IX has a decent growth rate and is not valued too expensively. IX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year IX was profitable.
- 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
- The Return On Assets of IX (2.50%) is better than 67.01% of its industry peers.
- IX has a Return On Equity (9.90%) which is comparable to the rest of the industry.
- IX has a Return On Invested Capital (3.15%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for IX is significantly below the industry average of 8.46%.
- The 3 year average ROIC (2.63%) for IX is below the current ROIC(3.15%), indicating increased profibility in the last year.
| 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
- With a Profit Margin value of 14.49%, IX perfoms like the industry average, outperforming 57.73% of the companies in the same industry.
- In the last couple of years the Profit Margin of IX has declined.
- IX has a better Operating Margin (19.97%) than 68.04% of its industry peers.
- IX's Operating Margin has been stable in the last couple of years.
- IX's Gross Margin of 42.41% is fine compared to the rest of the industry. IX outperforms 62.89% of its industry peers.
- 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.
- IX has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IX has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.66, we must say that IX is in the distress zone and has some risk of bankruptcy.
- IX has a Altman-Z score of 0.66. This is comparable to the rest of the industry: IX outperforms 54.64% of its industry peers.
- 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.
- IX has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.47, IX is doing worse than 62.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Altman-Z | 0.66 |
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's Current ratio of 0.48 is on the low side compared to the rest of the industry. IX is outperformed by 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 has a Quick ratio of 0.43. This is in the lower half of the industry: IX underperforms 61.86% 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 11.56%, which is quite good.
- 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.
- IX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
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.
- 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 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
- 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.16, which indicates a correct valuation of IX.
- IX's Price/Earnings is on the same level as the industry average.
- IX is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.40, the valuation of IX can be described as reasonable.
- IX's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
- 69.07% of the companies in the same industry are more expensive than IX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IX is valued a bit more expensive than 67.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2481.24 | ||
| EV/EBITDA | 9.77 |
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)2.29
EPS Next 2Y9.9%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
- IX has a Yearly Dividend Yield of 3.26%.
- Compared to an average industry Dividend Yield of 2.09, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
- On average, the dividend of IX grows each year by 7.63%, which is quite nice.
- 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
- 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 2Y9.9%
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 12.16 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%.