ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IX - US6863301015 - ADR
28.16 USD
+0.37 (+1.33%)
28.16 USD
0 (0%)
Taking everything into account, IX scores 4 out of 10 in our fundamental rating. IX was compared to 97 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 is valued correctly, but it does not seem to be growing. IX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IX had positive earnings in the past year.
In the past year IX had a positive cash flow from operations.
IX had positive earnings in each of the past 5 years.
IX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IX has a better Return On Assets (2.08%) than 61.86% of its industry peers.
Looking at the Return On Equity, with a value of 8.60%, IX is in line with its industry, outperforming 45.36% of the companies in the same industry.
With a Return On Invested Capital value of 2.59%, IX perfoms like the industry average, outperforming 48.45% 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%.
| 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 (12.23%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IX has declined.
The Operating Margin of IX (19.00%) is better than 65.98% of its industry peers.
In the last couple of years the Operating Margin of IX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 42.41%, IX is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
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
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.
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 0.78, 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 0.78, IX is in line with its industry, outperforming 54.64% of the companies in the same industry.
IX has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
IX has a worse Debt to Equity ratio (1.54) than 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.7
WACC3.68%
2.3 Liquidity
IX has a Current 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 Current ratio (0.94) which is in line with 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.
Looking at the Quick ratio, with a value of 0.83, IX is in line with its industry, outperforming 46.39% of the companies in the same 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.
The Earnings Per Share has been decreasing by -1.09% on average over the past years.
IX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
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 14.49% 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 5.93% on average per year.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y19.44%
EPS Next 5Y14.49%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.14%
Revenue Next 5Y5.93%
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
IX is valuated correctly with a Price/Earnings ratio of 13.16.
IX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of IX to the average of the S&P500 Index (26.59), we can say IX is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.62, IX is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as IX.
IX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
70.10% of the companies in the same industry are more expensive than IX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
The 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 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y19.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, IX has a reasonable but not impressive dividend return.
IX's Dividend Yield is rather good when compared to the industry average which is at 3.96. IX pays more dividend than 81.44% of the companies in the same industry.
IX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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.
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
IX pays out 38.56% 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.
DP38.56%
EPS Next 2Y21.71%
EPS Next 3Y19.44%
28.16
+0.37 (+1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners49.84%
Inst Owner Change1.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap31.36B
Revenue(TTM)2.94T
Net Income(TTM)351.60B
Analysts77.33
Price Target28.39 (0.82%)
Short Float %0.03%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.78
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)-2.01%
PT rev (3m)5.4%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)10.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 12.62 | ||
| P/S | 1.71 | ||
| P/FCF | N/A | ||
| P/OCF | 3.78 | ||
| P/B | 1.2 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.87 |
EPS(TTM)2.14
EY7.6%
EPS(NY)2.23
Fwd EY7.92%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)7.45
OCFY26.46%
SpS16.47
BVpS23.44
TBVpS16.86
PEG (NY)0.51
PEG (5Y)N/A
Graham Number33.59
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 | 0.78 |
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 3Y19.44%
EPS Next 5Y14.49%
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 3Y7.14%
Revenue Next 5Y5.93%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11464.6%
EBIT Next 3Y433.74%
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 4 / 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.