ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
30.33 USD
-0.23 (-0.75%)
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.
- IX had a positive operating cash flow in the past year.
- In the past 5 years IX has always been profitable.
- Each year in the past 5 years IX had a positive operating cash flow.
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.
- Looking at the Return On Invested Capital, with a value of 3.15%, IX is in line with its industry, outperforming 53.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for IX is significantly below the industry average of 8.46%.
- 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
- The Profit Margin of IX (14.49%) is comparable to the rest of the industry.
- IX's Profit Margin has declined in the last couple of years.
- IX has a Operating Margin of 19.97%. This is in the better half of the industry: IX outperforms 69.07% of its industry peers.
- 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 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
- 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
- Compared to 5 years ago, IX has less shares outstanding
- Compared to 1 year ago, IX has an improved debt to assets ratio.
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 53.61% 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.
- The Debt to FCF ratio of IX (3051.64) is worse than 67.01% 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.
- IX's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. IX is outperformed by 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'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.
- 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 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.
- IX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.21%.
- Measured over the past years, IX shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
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.
- IX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.80, which indicates a very decent valuation of IX.
- Compared to the rest of the industry, the Price/Earnings ratio of IX is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.60. IX is valued rather cheaply when compared to this.
- IX is valuated reasonably with a Price/Forward Earnings ratio of 11.07.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IX is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of IX to the average of the S&P500 Index (25.83), we can say IX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
- 71.13% of the companies in the same industry are more expensive than IX, based on the Enterprise Value to EBITDA ratio.
- 67.01% 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 | 2408.83 | ||
| EV/EBITDA | 9.65 |
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)0.67
PEG (5Y)2.22
EPS Next 2Y9.9%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
- IX has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
- IX's Dividend Yield is a higher than the industry average which is at 2.09.
- Compared to an average S&P500 Dividend Yield of 1.82, IX pays a better dividend.
| 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 11.8 and the Price/Book (PB) ratio is 1.16.
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%.