ORIX - SPONSORED ADR (IX) Stock Fundamental Analysis
USA - NYSE:IX - US6863301015 - ADR
27.05 USD
+0.19 (+0.71%)
27.05 USD
0 (0%)
Taking everything into account, IX scores 4 out of 10 in our fundamental rating. IX was compared to 101 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IX was profitable.
IX had a positive operating cash flow in the past year.
Each year in the past 5 years IX has been profitable.
Each year in the past 5 years IX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.08%, IX is in line with its industry, outperforming 56.44% of the companies in the same industry.
IX's Return On Equity of 8.60% is in line compared to the rest of the industry. IX outperforms 48.51% of its industry peers.
IX has a Return On Invested Capital (2.59%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for IX is significantly below the industry average of 7.65%.
| 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.
IX's Profit Margin has declined in the last couple of years.
The Operating Margin of IX (19.00%) is better than 65.35% of its industry peers.
IX's Operating Margin has been stable in the last couple of years.
IX has a Gross Margin of 42.41%. This is in the better half of the industry: IX outperforms 61.39% 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
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.
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
Based on the Altman-Z score of 0.76, 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 0.76, IX is in line with its industry, outperforming 53.47% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that IX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.54, IX is doing worse than 61.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
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.
IX's Current ratio of 0.94 is in line compared to the rest of the industry. IX outperforms 45.54% of 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.
The Quick ratio of IX (0.83) is comparable to the rest of the 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.
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 been growing slightly by 3.16% in the past year.
IX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.43% yearly.
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 5.95% 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 3Y6.67%
Revenue Next 5Y5.95%
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
Based on the Price/Earnings ratio of 12.08, the valuation of IX can be described as correct.
IX's Price/Earnings ratio is a bit cheaper when compared to the industry. IX is cheaper than 63.37% of the companies in the same industry.
IX is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.56, the valuation of IX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IX is on the same level as its industry peers.
IX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 11.56 |
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 75.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
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 16.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y21.71%
EPS Next 3Y16.74%
5. Dividend
5.1 Amount
IX has a Yearly Dividend Yield of 2.40%. 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 4.72.
IX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
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%
27.05
+0.19 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners46.25%
Inst Owner Change4.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.39B
Analysts77.33
Price Target28.97 (7.1%)
Short Float %0.06%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)7.56%
PT rev (3m)8.33%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)2.03%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 11.56 | ||
| P/S | 1.57 | ||
| P/FCF | N/A | ||
| P/OCF | 3.46 | ||
| P/B | 1.1 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)2.24
EY8.28%
EPS(NY)2.34
Fwd EY8.65%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)7.82
OCFY28.9%
SpS17.28
BVpS24.59
TBVpS17.69
PEG (NY)0.47
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 | 0.76 |
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 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 3Y6.67%
Revenue Next 5Y5.95%
EBIT growth 1Y-4.51%
EBIT growth 3Y7.89%
EBIT growth 5Y6.16%
EBIT Next Year10800.2%
EBIT Next 3Y423.92%
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%