ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - NYSE:IX - US6863301015 - ADR
24.87 USD
-0.29 (-1.15%)
24.87 USD
0 (0%)
Taking everything into account, IX scores 4 out of 10 in our fundamental rating. IX was compared to 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 is valued correctly, but it does not seem to be growing.
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.
IX had positive earnings in each of the past 5 years.
Each year in the past 5 years IX had a positive operating cash flow.
1.2 Ratios
IX has a Return On Assets (2.08%) which is comparable to the rest of the industry.
IX has a Return On Equity (8.60%) which is in line with its industry peers.
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 7.79%.
| 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 in line with its industry peers.
IX's Profit Margin has declined in the last couple of years.
IX has a Operating Margin of 19.00%. This is in the better half of the industry: IX outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of IX has remained more or less at the same level.
IX has a better Gross Margin (42.41%) than 61.62% 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
IX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
IX has a better debt/assets ratio than last year.
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's Altman-Z score of 0.75 is in line compared to the rest of the industry. IX outperforms 53.54% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that IX has dependencies on debt financing.
IX's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. IX is outperformed by 62.63% 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
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 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 of 0.83. This is comparable to the rest of the industry: IX outperforms 43.43% of its industry peers.
| 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.
Looking at the last year, IX shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
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 14.44% 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 3Y16.74%
EPS Next 5Y14.44%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y7.15%
Revenue Next 5Y5.88%
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
IX is valuated reasonably with a Price/Earnings ratio of 11.36.
Based on the Price/Earnings ratio, IX is valued a bit cheaper than the industry average as 62.63% 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 26.89.
The Price/Forward Earnings ratio is 10.89, which indicates a very decent valuation of IX.
The rest of the industry has a similar Price/Forward Earnings ratio as IX.
When comparing the Price/Forward Earnings ratio of IX to the average of the S&P500 Index (22.99), we can say IX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IX is valued a bit cheaper than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.16 |
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 16.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y16.74%
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 a higher than the industry average which is at 5.13.
IX's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 3Y16.74%
24.87
-0.29 (-1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners46.25%
Inst Owner Change-0.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.74B
Revenue(TTM)2935.32B
Net Income(TTM)351.60B
Analysts77.33
Price Target28.97 (16.49%)
Short Float %0.02%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.79
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)0%
PT rev (3m)8.96%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0.73%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.89 | ||
| P/S | 1.48 | ||
| P/FCF | N/A | ||
| P/OCF | 3.26 | ||
| P/B | 1.04 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 9.16 |
EPS(TTM)2.19
EY8.81%
EPS(NY)2.28
Fwd EY9.18%
FCF(TTM)-0.34
FCFYN/A
OCF(TTM)7.62
OCFY30.66%
SpS16.86
BVpS23.98
TBVpS17.26
PEG (NY)0.44
PEG (5Y)N/A
Graham Number34.38
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 3Y16.74%
EPS Next 5Y14.44%
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 3Y7.15%
Revenue Next 5Y5.88%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11154.9%
EBIT Next 3Y429.55%
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.