ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
NYSE:IX - New York Stock Exchange, Inc. - US6863301015 - ADR - Currency: USD
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. There are concerns on the financial health of IX while its profitability can be described as average. IX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IX was profitable.
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
IX has a Return On Assets of 2.45%. This is comparable to the rest of the industry: IX outperforms 57.43% of its industry peers.
IX has a Return On Equity of 10.28%. This is comparable to the rest of the industry: IX outperforms 49.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, IX is in line with its industry, outperforming 53.47% 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 7.75%.
The last Return On Invested Capital (3.34%) for IX is above the 3 year average (2.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROIC | 3.34% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
1.3 Margins
IX has a Profit Margin (14.03%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IX has declined.
IX's Operating Margin of 20.88% is fine compared to the rest of the industry. IX outperforms 66.34% of its industry peers.
IX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.39%, IX is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
IX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% |
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 worse debt/assets ratio than last year.
2.2 Solvency
IX has an Altman-Z score of 1.27. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.27, IX is doing good in the industry, outperforming 65.35% of the companies in the same industry.
The Debt to FCF ratio of IX is 454.61, which is on the high side as it means it would take IX, 454.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IX (454.61) is worse than 63.37% of its industry peers.
IX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.60, IX is not doing good in the industry: 62.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.32
WACC10.36%
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.
Looking at the Current ratio, with a value of 0.48, IX is doing worse than 64.36% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that IX may have some problems paying its short term obligations.
The Quick ratio of IX (0.43) is worse than 64.36% 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 impressive 37.62% over the past year.
IX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.36% yearly.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.52%.
The Revenue has been growing slightly by 2.94% on average over the past years.
EPS 1Y (TTM)37.62%
EPS 3Y24.25%
EPS 5Y3.36%
EPS Q2Q%49.9%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y7.07%
Revenue growth 5Y2.94%
Sales Q2Q%1.86%
3.2 Future
The Earnings Per Share is expected to grow by 11.14% 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 5.33% on average per year.
EPS Next Y18.18%
EPS Next 2Y12.49%
EPS Next 3Y11.14%
EPS Next 5YN/A
Revenue Next Year5.53%
Revenue Next 2Y5.9%
Revenue Next 3Y5.33%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.69, the valuation of IX can be described as expensive.
71.29% of the companies in the same industry are cheaper than IX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, IX is valued a bit more expensive.
The Price/Forward Earnings ratio is 40.37, which means the current valuation is very expensive for IX.
Based on the Price/Forward Earnings ratio, IX is valued a bit more expensive than 73.27% of the companies in the same industry.
IX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.69 | ||
| Fwd PE | 40.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IX is on the same level as its industry peers.
63.37% 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 | 1240.21 | ||
| EV/EBITDA | 21.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IX may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)12.72
EPS Next 2Y12.49%
EPS Next 3Y11.14%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
IX's Dividend Yield is rather good when compared to the industry average which is at 3.84. IX pays more dividend than 82.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, IX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of IX has a limited annual growth rate of 4.50%.
IX has paid a dividend for at least 10 years, which is a reliable track record.
IX has decreased its dividend recently.
Dividend Growth(5Y)4.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
IX pays out 28.45% 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.
DP28.45%
EPS Next 2Y12.49%
EPS Next 3Y11.14%
99.9
-1.78 (-1.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change4.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap113.50B
Analysts76
Price Target112.44 (12.55%)
Short Float %0.01%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend86.05
Dividend Growth(5Y)4.5%
DP28.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.09%
PT rev (3m)-3.85%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-80.06%
EPS NY rev (3m)-80.04%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.69 | ||
| Fwd PE | 40.37 | ||
| P/S | 5.95 | ||
| P/FCF | 1240.21 | ||
| P/OCF | 13.59 | ||
| P/B | 4.36 | ||
| P/tB | 4.36 | ||
| EV/EBITDA | 21.88 |
EPS(TTM)2.34
EY2.34%
EPS(NY)2.47
Fwd EY2.48%
FCF(TTM)0.08
FCFY0.08%
OCF(TTM)7.35
OCFY7.36%
SpS16.78
BVpS22.9
TBVpS22.9
PEG (NY)2.35
PEG (5Y)12.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 5.04% | ||
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% | ||
| FCFM | 0.48% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
ROICexc(3y)2.88%
ROICexc(5y)2.77%
ROICexgc(3y)3.84%
ROICexgc(5y)3.72%
ROCE(3y)3.69%
ROCE(5y)3.53%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y0.24%
ROICexc growth 3Y9.07%
ROICexc growth 5Y-1.79%
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
F-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 320.46% | ||
| Cap/Sales | 43.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.37% | ||
| Profit Quality | 3.42% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.27 |
F-Score9
WACC10.36%
ROIC/WACC0.32
Cap/Depr(3y)304.32%
Cap/Depr(5y)295.6%
Cap/Sales(3y)39.87%
Cap/Sales(5y)39.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.62%
EPS 3Y24.25%
EPS 5Y3.36%
EPS Q2Q%49.9%
EPS Next Y18.18%
EPS Next 2Y12.49%
EPS Next 3Y11.14%
EPS Next 5YN/A
Revenue 1Y (TTM)7.52%
Revenue growth 3Y7.07%
Revenue growth 5Y2.94%
Sales Q2Q%1.86%
Revenue Next Year5.53%
Revenue Next 2Y5.9%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
EBIT growth 1Y11.71%
EBIT growth 3Y16.64%
EBIT growth 5Y5%
EBIT Next Year11772.8%
EBIT Next 3Y428.96%
EBIT Next 5YN/A
FCF growth 1Y107.51%
FCF growth 3Y-50.07%
FCF growth 5YN/A
OCF growth 1Y62%
OCF growth 3Y4.31%
OCF growth 5Y16.17%