ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
30.61 USD
+0.42 (+1.39%)
30.69 USD
+0.08 (+0.26%)
We assign a fundamental rating of 5 out of 10 to IX. IX was compared to 98 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 not valued too expensively and it also shows a decent growth rate. Finally IX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IX had positive earnings in the past year.
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
IX has a Return On Assets of 2.50%. This is in the better half of the industry: IX outperforms 67.35% of its industry peers.
IX has a Return On Equity (9.90%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.15%, IX is in line with its industry, outperforming 53.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IX is significantly below the industry average of 8.44%.
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
IX has a Profit Margin (14.49%) which is comparable to the rest of the industry.
IX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.97%, IX is doing good in the industry, outperforming 68.37% of the companies in the same industry.
In the last couple of years the Operating Margin of IX has remained more or less at the same level.
IX's Gross Margin of 42.41% is fine compared to the rest of the industry. IX outperforms 63.27% of its industry peers.
In the last couple of years the Gross Margin of IX has grown nicely.
| 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
IX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IX has less shares outstanding
IX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IX has been reduced compared to a year ago.
2.2 Solvency
IX has an Altman-Z score of 0.67. This is a bad value and indicates that IX is not financially healthy and even has some risk of bankruptcy.
IX has a Altman-Z score (0.67) which is in line with 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.
IX's Debt to FCF ratio of 3051.64 is on the low side compared to the rest of the industry. IX is outperformed by 66.33% 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.
With a Debt to Equity ratio value of 1.47, IX is not doing good in the industry: 62.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Altman-Z | 0.67 |
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 has a Current ratio of 0.48. This is in the lower half of the industry: IX underperforms 61.22% 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 61.22% 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 nice 11.56% over the past year.
The Earnings Per Share has been growing slightly by 5.31% on average over the past years.
The Revenue has been growing slightly by 6.21% in the past year.
The Revenue has been growing slightly by 4.74% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y16.4%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
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
IX is valuated correctly with a Price/Earnings ratio of 12.29.
Compared to the rest of the industry, the Price/Earnings ratio of IX is on the same level as its industry peers.
IX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of IX.
The rest of the industry has a similar Price/Forward Earnings ratio as IX.
IX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than the industry average as 70.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IX indicates a slightly more expensive valuation: IX is more expensive than 66.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2514.37 | ||
| EV/EBITDA | 9.84 |
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.
The decent profitability rating of IX may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)2.32
EPS Next 2Y9.65%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 3.30%.
IX's Dividend Yield is a higher than the industry average which is at 2.49.
Compared to an average S&P500 Dividend Yield of 1.92, IX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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.
IX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.18%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
30.61
+0.42 (+1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners49.67%
Inst Owner Change0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.09B
Revenue(TTM)3.04T
Net Income(TTM)439.75B
Analysts77.33
Price Target29.8 (-2.65%)
Short Float %0.04%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.76
Dividend Growth(5Y)7.63%
DP31.18%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)4.97%
PT rev (3m)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)7.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.77 | ||
| P/FCF | 2514.37 | ||
| P/OCF | 4.11 | ||
| P/B | 1.21 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)2.49
EY8.13%
EPS(NY)2.64
Fwd EY8.62%
FCF(TTM)0.01
FCFY0.04%
OCF(TTM)7.45
OCFY24.35%
SpS17.29
BVpS25.3
TBVpS17.7
PEG (NY)0.75
PEG (5Y)2.32
Graham Number37.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 9.9% | ||
| ROCE | 4.53% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 4.93% | ||
| OM | 19.97% | ||
| PM (TTM) | 14.49% | ||
| GM | 42.41% | ||
| FCFM | 0.07% |
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3051.64 | ||
| Debt/EBITDA | 6.49 | ||
| Cap/Depr | 327.15% | ||
| Cap/Sales | 43.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.12% | ||
| Profit Quality | 0.49% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.67 |
F-Score7
WACC3.68%
ROIC/WACC0.86
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)11.56%
EPS 3Y5.84%
EPS 5Y5.31%
EPS Q2Q%73.73%
EPS Next Y16.4%
EPS Next 2Y9.65%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.21%
Revenue growth 3Y4.48%
Revenue growth 5Y4.74%
Sales Q2Q%14.43%
Revenue Next Year6.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y1.57%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year12639.7%
EBIT Next 3Y452.28%
EBIT Next 5YN/A
FCF growth 1Y111.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.39%
OCF growth 3Y5.62%
OCF growth 5Y4.52%
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 12.29 and the Price/Book (PB) ratio is 1.21.
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%.