ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - NYSE:IX - US6863301015 - ADR
26.04 USD
+0.62 (+2.44%)
26.04 USD
0 (0%)
Overall IX gets a fundamental rating of 4 out of 10. We evaluated IX against 99 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 it does not seem to be growing. 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.
Each year in the past 5 years IX has been profitable.
Each year in the past 5 years IX had a positive operating cash flow.
1.2 Ratios
IX has a better Return On Assets (2.08%) than 62.63% of its industry peers.
IX has a Return On Equity of 8.60%. This is comparable to the rest of the industry: IX outperforms 47.47% of its industry peers.
IX has a Return On Invested Capital of 2.59%. This is comparable to the rest of the industry: IX outperforms 50.51% of its industry peers.
IX had an Average Return On Invested Capital over the past 3 years of 2.63%. This is significantly below the industry average of 8.14%.
| 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's Profit Margin of 12.23% is in line compared to the rest of the industry. IX outperforms 57.58% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
The Operating Margin of IX (19.00%) is better than 65.66% 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 63.64% of its industry peers.
IX's Gross Margin has improved in the last couple of years.
| 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
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 0.75, we must say that IX is in the distress zone and has some risk of bankruptcy.
IX has a Altman-Z score (0.75) which is in line with its industry peers.
IX has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IX (1.54) is worse than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.71
WACC3.67%
2.3 Liquidity
A Current Ratio of 0.94 indicates that IX may have some problems paying its short term obligations.
The Current ratio of IX (0.94) is comparable to the rest of the industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for IX have decreased strongly by -10.80% in the last year.
IX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.09% yearly.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
The Revenue has been decreasing by -1.43% on average over the past years.
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 14.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y18.06%
EPS Next 5Y14.37%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.2%
Revenue Next 5Y5.88%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.73, the valuation of IX can be described as reasonable.
IX's Price/Earnings is on the same level as the industry average.
IX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of IX can be described as reasonable.
IX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IX to the average of the S&P500 Index (34.46), we can say IX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
IX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IX is cheaper than 71.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.2 |
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 18.06% 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 3Y18.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, IX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.68, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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.
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
38.56% of the earnings are spent on dividend by IX. This is a low number and sustainable payout ratio.
IX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.56%
EPS Next 2Y21.71%
EPS Next 3Y18.06%
26.04
+0.62 (+2.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners46.25%
Inst Owner Change0.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.80B
Revenue(TTM)2.94T
Net Income(TTM)351.60B
Analysts77.33
Price Target28.37 (8.95%)
Short Float %0.03%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend0.82
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)-2.07%
PT rev (3m)5.34%
EPS NQ rev (1m)4.92%
EPS NQ rev (3m)5.43%
EPS NY rev (1m)8.06%
EPS NY rev (3m)7.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 11.25 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 3.37 | ||
| P/B | 1.07 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)2.22
EY8.53%
EPS(NY)2.31
Fwd EY8.89%
FCF(TTM)-0.34
FCFYN/A
OCF(TTM)7.73
OCFY29.68%
SpS17.09
BVpS24.31
TBVpS17.49
PEG (NY)0.46
PEG (5Y)N/A
Graham Number34.84
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%
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-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
WACC3.67%
ROIC/WACC0.71
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 3Y18.06%
EPS Next 5Y14.37%
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 3Y7.2%
Revenue Next 5Y5.88%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11501.3%
EBIT Next 3Y434.93%
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%
ORIX - SPONSORED ADR / IX FAQ
Can you provide the ChartMill fundamental rating for ORIX - SPONSORED ADR?
ChartMill assigns a fundamental rating of 4 / 10 to IX.
What is the valuation status of ORIX - SPONSORED ADR (IX) stock?
ChartMill assigns a valuation rating of 5 / 10 to ORIX - SPONSORED ADR (IX). This can be considered as Fairly Valued.
What is the profitability of IX stock?
ORIX - SPONSORED ADR (IX) has a profitability rating of 5 / 10.
What is the financial health of ORIX - SPONSORED ADR (IX) stock?
The financial health rating of ORIX - SPONSORED ADR (IX) is 2 / 10.
Can you provide the expected EPS growth for IX stock?
The Earnings per Share (EPS) of ORIX - SPONSORED ADR (IX) is expected to grow by 25.58% in the next year.