ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
NYSE:IX - New York Stock Exchange, Inc. - US6863301015 - ADR - Currency: USD
IX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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 has a decent growth rate and is not valued too expensively. 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.
IX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IX has a Return On Assets (2.45%) which is comparable to the rest of the industry.
The Return On Equity of IX (10.28%) is comparable to the rest of the industry.
IX's Return On Invested Capital of 3.34% is in line compared to the rest of the industry. IX outperforms 51.49% 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 11.97%.
The 3 year average ROIC (2.63%) for IX is below the current ROIC(3.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROIC | 3.34% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
1.3 Margins
IX's Profit Margin of 14.03% is fine compared to the rest of the industry. IX outperforms 62.38% of its industry peers.
In the last couple of years the Profit Margin of IX has declined.
IX has a Operating Margin of 20.88%. This is in the better half of the industry: IX outperforms 65.35% of its industry peers.
IX's Operating Margin has improved in the last couple of years.
IX's Gross Margin of 43.39% is fine compared to the rest of the industry. IX outperforms 66.34% of its industry peers.
In the last couple of years the Gross Margin of IX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% |
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IX is destroying value.
The number of shares outstanding for IX has been reduced compared to 1 year ago.
The number of shares outstanding for IX has been reduced compared to 5 years ago.
The debt/assets ratio for IX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that IX is in the distress zone and has some risk of bankruptcy.
IX has a Altman-Z score (0.60) which is in line with its industry peers.
The Debt to FCF ratio of IX is 454.61, which is on the high side as it means it would take IX, 454.61 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 454.61, IX is not doing good in the industry: 60.40% of the companies in the same industry are doing better.
IX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
IX has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: IX underperforms 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.48
WACC7.01%
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.
Looking at the Current ratio, with a value of 0.48, IX is doing worse than 64.36% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that IX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, IX is doing worse than 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for IX have decreased strongly by -10.80% in the last year.
Measured over the past years, IX shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.09% on average per year.
The Revenue has grown by 8.29% in the past year. This is quite good.
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%-0.91%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.72%
3.2 Future
The Earnings Per Share is expected to grow by 15.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y25.58%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
EPS Next 5Y15.32%
Revenue Next Year10.87%
Revenue Next 2Y8%
Revenue Next 3Y7.42%
Revenue Next 5Y6.65%
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
A Price/Earnings ratio of 12.27 indicates a correct valuation of IX.
IX's Price/Earnings ratio is in line with the industry average.
IX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 8.01, the valuation of IX can be described as very reasonable.
68.32% of the companies in the same industry are more expensive than IX, based on the Price/Forward Earnings ratio.
IX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IX indicates a somewhat cheap valuation: IX is cheaper than 79.21% of the companies listed in the same industry.
IX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 236.02 | ||
| EV/EBITDA | 7.61 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IX's earnings are expected to grow with 17.35% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y23.76%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, IX is a good candidate for dividend investing.
IX's Dividend Yield is rather good when compared to the industry average which is at 4.83. IX pays more dividend than 83.17% of the companies in the same industry.
IX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of IX has a limited annual growth rate of 4.50%.
IX has paid a dividend for at least 10 years, which is a reliable track record.
IX has decreased its dividend recently.
Dividend Growth(5Y)4.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
IX pays out 28.45% 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.
DP28.45%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
20
-0.3 (-1.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.63%
Inst Owner Change15.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap22.72B
Analysts76.25
Price Target28.55 (42.75%)
Short Float %N/A
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend0.6
Dividend Growth(5Y)4.5%
DP28.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)4.29%
PT rev (3m)-75.67%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-80.11%
EPS NY rev (1m)2.54%
EPS NY rev (3m)-79.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 8.01 | ||
| P/S | 1.13 | ||
| P/FCF | 236.02 | ||
| P/OCF | 2.59 | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)1.63
EY8.15%
EPS(NY)2.5
Fwd EY12.48%
FCF(TTM)0.08
FCFY0.42%
OCF(TTM)7.73
OCFY38.67%
SpS17.65
BVpS24.09
TBVpS24.09
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 5.04% | ||
| OM | 20.88% | ||
| PM (TTM) | 14.03% | ||
| GM | 43.39% | ||
| FCFM | 0.48% |
ROA(3y)2.07%
ROA(5y)1.99%
ROE(3y)8.85%
ROE(5y)8.6%
ROIC(3y)2.63%
ROIC(5y)2.52%
ROICexc(3y)2.88%
ROICexc(5y)2.77%
ROICexgc(3y)3.84%
ROICexgc(5y)3.72%
ROCE(3y)3.69%
ROCE(5y)3.53%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y0.24%
ROICexc growth 3Y9.07%
ROICexc growth 5Y-1.79%
OM growth 3Y8.94%
OM growth 5Y2%
PM growth 3Y13.59%
PM growth 5Y-1.55%
GM growth 3Y5.22%
GM growth 5Y3.1%
F-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 454.61 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 320.46% | ||
| Cap/Sales | 43.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.37% | ||
| Profit Quality | 3.42% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.6 |
F-Score9
WACC7.01%
ROIC/WACC0.48
Cap/Depr(3y)304.32%
Cap/Depr(5y)295.6%
Cap/Sales(3y)39.87%
Cap/Sales(5y)39.21%
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%-0.91%
EPS Next Y25.58%
EPS Next 2Y23.76%
EPS Next 3Y17.35%
EPS Next 5Y15.32%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y5.32%
Revenue growth 5Y-1.43%
Sales Q2Q%10.72%
Revenue Next Year10.87%
Revenue Next 2Y8%
Revenue Next 3Y7.42%
Revenue Next 5Y6.65%
EBIT growth 1Y11.71%
EBIT growth 3Y16.64%
EBIT growth 5Y5%
EBIT Next Year10219.2%
EBIT Next 3Y417.51%
EBIT Next 5YN/A
FCF growth 1Y107.51%
FCF growth 3Y-50.07%
FCF growth 5YN/A
OCF growth 1Y62%
OCF growth 3Y4.31%
OCF growth 5Y16.17%