ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
NYSE:IX - US6863301015 - ADR
25.92 USD
-0.23 (-0.88%)
25.92 USD
0 (0%)
IX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While IX is still in line with the averages on profitability rating, there are concerns on its financial health. 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 comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.59%, IX is in line with its industry, outperforming 51.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IX is significantly below the industry average of 7.64%.
| 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 56.86% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
IX's Operating Margin of 19.00% is fine compared to the rest of the industry. IX outperforms 64.71% 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's Gross Margin of 42.41% is fine compared to the rest of the industry. IX outperforms 61.76% 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
IX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
IX has less shares outstanding than it did 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
IX has an Altman-Z score of 0.75. 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 (0.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that IX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.54, IX is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.7
WACC3.68%
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's Quick ratio of 0.83 is in line compared to the rest of the industry. IX outperforms 44.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
IX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.80%.
IX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.09% yearly.
The Revenue has been growing slightly by 3.16% in the past year.
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
Based on estimates for the next years, IX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.26% on average per year.
IX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.96% yearly.
EPS Next Y25.58%
EPS Next 2Y21.71%
EPS Next 3Y15.85%
EPS Next 5Y14.26%
Revenue Next Year10.87%
Revenue Next 2Y7.75%
Revenue Next 3Y6.71%
Revenue Next 5Y5.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.52 indicates a reasonable valuation of IX.
Compared to the rest of the industry, the Price/Earnings ratio of IX indicates a somewhat cheap valuation: IX is cheaper than 63.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, IX is valued rather cheaply.
IX is valuated reasonably with a Price/Forward Earnings ratio of 11.02.
IX's Price/Forward Earnings is on the same level as the industry average.
IX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
IX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IX is cheaper than 77.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.21 |
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.
A more expensive valuation may be justified as IX's earnings are expected to grow with 15.85% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y15.85%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 3.13%.
IX's Dividend Yield is a higher than the industry average which is at 4.26.
IX's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of IX is nicely growing with an annual growth rate of 7.63%!
IX has been paying a dividend for at least 10 years, so it has 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 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 3Y15.85%
25.92
-0.23 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners48.32%
Inst Owner Change4.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.12B
Analysts76.25
Price Target26.93 (3.9%)
Short Float %0.06%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.81
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)1.29%
PT rev (3m)-1.92%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)-3.61%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 11.02 | ||
| P/S | 1.49 | ||
| P/FCF | N/A | ||
| P/OCF | 3.3 | ||
| P/B | 1.05 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)2.25
EY8.68%
EPS(NY)2.35
Fwd EY9.08%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)7.86
OCFY30.32%
SpS17.37
BVpS24.72
TBVpS17.78
PEG (NY)0.45
PEG (5Y)N/A
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%
ROICexcg growth 3Y0.25%
ROICexcg 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
WACC3.68%
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 3Y15.85%
EPS Next 5Y14.26%
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 3Y6.71%
Revenue Next 5Y5.96%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year11612%
EBIT Next 3YN/A
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%