Orix (IX) AI Stock Analysis

• Market Cap: $28.56B
• Dividend Yield: 3.08%
• Average Volume (3M): 134.68K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.78
• Revenue Growth: 2.89%
• EPS Growth: 2.13%
• Country: US
• Employees: 33,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 3.20
• Shares Outstanding: 1,162,962,300
• 10 Day Avg. Volume: 134,694
• 30 Day Avg. Volume: 134,680
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: $29.00
• Price Target Upside: 8.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $29.00 ▲(8.86% Upside)

Orix's overall stock score is driven by a positive earnings call sentiment and attractive valuation, despite technical indicators suggesting an overbought condition. Financial performance shows strong revenue growth but is offset by high leverage and negative free cash flow, necessitating careful financial management.

Orix Business Overview & Revenue Model

Company Description

ORIX Corporation provides diversified financial services in Japan, the Americas, Asia, Europe, Australasia, the Middle East, and internationally. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Orix generates revenue through multiple streams primarily rooted in its leasing and financial services. The company earns income from leasing activities, which involve providing equipment and machinery to businesses on a rental basis. Corporate finance services, including loans and credit facilities, also contribute significantly to its revenue. Additionally, Orix invests in real estate and infrastructure projects, generating returns through property management and development activities. The company has established partnerships with various stakeholders, including government entities and private firms, which enhance its investment opportunities and revenue potential. Furthermore, Orix's commitment to renewable energy investments has opened up new revenue avenues as global demand for sustainable solutions continues to rise.

Orix Financial Statement Overview

Summary

Orix shows strong revenue growth and stable profitability, but faces challenges with high leverage and negative free cash flow. The income statement reflects a positive growth trajectory, while the balance sheet indicates potential risks due to high debt levels. Cash flow issues, particularly negative free cash flow, highlight the need for careful financial management.

Income Statement

Orix has demonstrated strong revenue growth with a 22.64% increase in the latest year, indicating robust business expansion. The gross profit margin is healthy at 41.76%, and the net profit margin is solid at 12.23%. However, the EBIT margin has decreased to 18.34% from 19.62% the previous year, suggesting some pressure on operational efficiency. Overall, the income statement reflects a strong growth trajectory with stable profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.54, indicating significant leverage, which could pose risks if not managed carefully. The return on equity is currently at 0%, reflecting a need for improvement in generating returns for shareholders. The equity ratio stands at 24.25%, showing a moderate level of equity financing. While the balance sheet shows stability, the high leverage warrants caution.

Cash Flow

Orix's cash flow statement reveals challenges with a negative free cash flow growth rate of -108.44%, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is 0.39, suggesting that operating cash flows are not fully covering net income. The free cash flow to net income ratio is negative, highlighting potential liquidity concerns. While operating cash flow remains positive, the negative free cash flow trend is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.87T	2.87T	2.81T	1.63T	1.58T	1.42T
Gross Profit	1.20T	1.20T	1.17T	-14.62B	-348.00M	-43.45B
EBITDA	807.51B	926.89B	834.22B	732.43B	829.75B	599.09B
Net Income	351.63B	351.63B	346.13B	290.34B	317.38B	192.38B
Balance Sheet
Total Assets	16.87T	16.87T	16.32T	15.27T	14.27T	13.56T
Cash, Cash Equivalents and Short-Term Investments	3.81T	3.81T	1.05T	3.47T	3.13T	2.96T
Total Debt	6.28T	6.28T	6.20T	5.72T	4.87T	4.72T
Total Liabilities	12.69T	12.69T	12.30T	11.84T	10.90T	10.46T
Stockholders Equity	4.09T	4.09T	3.94T	3.36T	3.26T	3.03T
Cash Flow
Free Cash Flow	0.00	-57.48B	42.53B	-166.99B	186.07B	341.72B
Operating Cash Flow	0.00	1.30T	1.24T	913.09B	1.10T	1.10T
Investing Cash Flow	0.00	-1.31T	-1.37T	-1.10T	-808.85B	-1.21T
Financing Cash Flow	0.00	149.32B	-85.48B	438.31B	-306.62B	39.88B

Orix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IX, the sentiment is Positive. The current price of 26.64 is above the 20-day moving average (MA) of 26.61, above the 50-day MA of 25.28, and above the 200-day MA of 22.06, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IX.

Orix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYF	78 Outperform	27.73B	9.03	21.10%	1.48%	-3.16%	14.60%
OMF	76 Outperform	6.96B	10.63	19.93%	7.11%	9.41%	13.98%
IX	72 Outperform	$28.56B	12.15	9.23%	3.08%	2.89%	2.13%
WU	70 Outperform	2.57B	2.97	96.42%	11.82%	-3.83%	62.05%
ALLY	58 Neutral	12.36B	26.52	2.36%	2.99%	-5.33%	-32.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%