ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - NYSE:IX - US6863301015 - ADR
26.96 USD
-0.1 (-0.37%)
26.96 USD
0 (0%)
Taking everything into account, IX scores 4 out of 10 in our fundamental rating. IX was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IX was profitable.
IX had a positive operating cash flow in the past year.
IX had positive earnings in each of the past 5 years.
In the past 5 years IX always reported a positive cash flow from operatings.
1.2 Ratios
IX has a Return On Assets (2.08%) which is comparable to the rest of the industry.
The Return On Equity of IX (8.60%) is comparable to the rest of the industry.
IX has a Return On Invested Capital (2.59%) which is comparable to the rest of the 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 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROIC | 2.59% |
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 12.23%. This is comparable to the rest of the industry: IX outperforms 57.43% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
IX's Operating Margin of 19.00% is fine compared to the rest of the industry. IX outperforms 65.35% of its industry peers.
In the last couple of years the Operating Margin of IX has remained more or less at the same level.
The Gross Margin of IX (42.41%) is better than 61.39% of its industry peers.
In the last couple of years the Gross Margin of IX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19% | ||
| PM (TTM) | 12.23% | ||
| 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.
The number of shares outstanding for IX has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of 0.75, we must say that IX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, IX is in line with its industry, outperforming 53.47% 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.
The Debt to Equity ratio of IX (1.54) is worse than 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.7
WACC3.68%
2.3 Liquidity
A Current Ratio of 0.94 indicates that IX may have some problems paying its short term obligations.
IX has a Current ratio of 0.94. This is comparable to the rest of the industry: IX outperforms 45.54% of its industry peers.
IX has a Quick Ratio of 0.94. 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 (0.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 |
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.
Looking at the last year, IX shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
Measured over the past years, IX shows a decrease in Revenue. The Revenue has been decreasing by -1.43% on average per year.
EPS 1Y (TTM)-10.8%
EPS 3Y-0.85%
EPS 5Y-1.09%
EPS Q2Q%25.45%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.73%
3.2 Future
The Earnings Per Share is expected to grow by 14.26% on average over the next years. This is quite good.
Based on estimates for the next years, IX will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y15.85%
EPS Next 5Y14.26%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y6.67%
Revenue Next 5Y5.95%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IX is valuated reasonably with a Price/Earnings ratio of 11.88.
Based on the Price/Earnings ratio, IX is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
IX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 11.39, which indicates a very decent valuation of IX.
IX's Price/Forward Earnings ratio is in line with the industry average.
IX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than 76.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.36 |
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's earnings are expected to grow with 15.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y15.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, IX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.86, IX pays a bit more dividend than its industry peers.
IX's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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.
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
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 2Y21.71%
EPS Next 3Y15.85%
26.96
-0.1 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners48.32%
Inst Owner Change4.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.29B
Analysts77.33
Price Target28.97 (7.46%)
Short Float %0.06%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend0.81
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)7.56%
PT rev (3m)8.33%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-2.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 11.39 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | 3.41 | ||
| P/B | 1.08 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)2.27
EY8.42%
EPS(NY)2.37
Fwd EY8.78%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)7.91
OCFY29.33%
SpS17.48
BVpS24.87
TBVpS17.89
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.6% | ||
| ROCE | 3.7% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.72% | ||
| 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)2.63%
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%
ROICexcg growth 3Y0.25%
ROICexcg 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-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.65 | ||
| Cap/Depr | 339.82% | ||
| Cap/Sales | 47.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.75 |
F-Score6
WACC3.68%
ROIC/WACC0.7
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%25.45%
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y15.85%
EPS Next 5Y14.26%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.73%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y6.67%
Revenue Next 5Y5.95%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11539.7%
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%