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Orix Corp Ads (IX)
NYSE:IX
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Orix
(NYSE:IX)
Rating:69Neutral
Price Target:―
Orix (IX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.34B
Dividend Yield2.66%
Average Volume (3M)189.78K
Price to Earnings (P/E)11.2
Beta (1Y)0.75
Revenue Growth0.31%
EPS Growth34.40%
CountryUS
Employees33,807
SectorFinancial
Sector Strength81
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.56
Shares Outstanding1,162,962,300
10 Day Avg. Volume150,220
30 Day Avg. Volume189,784
Financial Highlights & Ratios
PEG Ratio1.84
Price to Book (P/B)0.72
Price to Sales (P/S)0.00
P/FCF Ratio-4.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Orix Business Overview & Revenue Model
Company DescriptionORIX 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 MoneyOrix Corporation generates revenue through its diverse portfolio of businesses. Its primary revenue streams include leasing and loan services, where it provides capital to businesses and individuals in exchange for interest and leasing fees. The company also earns income from its real estate segment through property development, management, and investment activities. Additionally, Orix generates profits from its banking and insurance operations, which include interest income from loans, premiums from insurance policies, and asset management fees. The company's strategic partnerships and investments across various sectors further contribute to its earnings, allowing it to capitalize on opportunities in different markets and regions.
Orix Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2025)
| % Change Since: 12.48%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with ORIX achieving record net income and planning increased dividends and buybacks, but facing challenges such as missing the income forecast due to an uncompleted asset sale and significant impairments. The strategic focus on capital recycling and potential new business opportunities highlights a forward-looking approach amidst global uncertainties.Q4-2025 Updates
Positive Updates
Record Net Income
ORIX achieved a record net income of JPY 351.6 billion for the fiscal year ending March 2025, despite significant impairments and missing the initial forecast of JPY 390 billion.
Increased Dividends and Share Buybacks
The full year dividend per share was JPY 120.01, with a plan to increase it to JPY 132 for FY '26. The scale of share buybacks was doubled to JPY 100 billion.
Strong Performance in Investment Category
Segment profits in the investment category saw a significant increase of JPY 56.2 billion compared to the previous year.
Expansion Plans for Kansai Airports
Major renovation of Terminal 1 at Kansai International Airport was completed, expanding international passenger intake capacity by 1.7x, preparing for increased traffic due to the Osaka Expo.
Negative Updates
Missed Forecast Due to Greenko Sale
Unable to achieve the sale of Greenko, which was expected to contribute to the full year forecast net income of JPY 390 billion.
Significant Impairments
Recorded total impairments of JPY 53.1 billion on a pretax basis for some assets and investments due to conservative forecasts amidst global economic uncertainties.
Decline in Operation Category Profit
Profit in the operation category declined year-over-year, mainly due to a conservative revision of plans for coal and biomass coal-fired power plants, resulting in an impairment of approximately JPY 20 billion.
Company Guidance
In the recent ORIX Corporation earnings call for the fiscal year ending March 31, 2025, several key financial metrics and strategic highlights were discussed. The company reported a consolidated net income of JPY 351.6 billion, which was a 2% increase from the previous year but fell short of the JPY 390 billion forecast. The full year ROE stood at 8.8%, amidst significant market uncertainty. Despite recording total impairments of JPY 53.1 billion due to global supply chain disruptions and resource price fluctuations, ORIX achieved a record-high profit. The company's pretax profit was JPY 480.5 billion, with segment profits totaling JPY 544.7 billion. Finance category profits reached JPY 176.3 billion, driven by strong investment income from ORIX Life Insurance and the U.S. private credit businesses. The operations category reported JPY 200.2 billion in profits, despite a JPY 20 billion impairment related to coal-fired power plants. Investment category profits surged to JPY 168.2 billion, aided by significant gains in domestic PE and real estate segments. Looking forward, ORIX forecasted a JPY 380 billion net income for the next fiscal year, projecting a third consecutive record year, while planning to increase their dividend to JPY 132 per share and doubling share buybacks to JPY 100 billion to enhance ROE and shareholder return ratios.Orix Financial Statement Overview
Summary
Orix shows strong revenue growth and robust profitability, with a significant increase in net income despite operational inefficiencies reflected in negative EBIT. The balance sheet is leveraged but stable, and cash flow management is improving, though it remains volatile.Income Statement
Orix has demonstrated solid revenue growth over the years with a significant increase from 2023 to 2024, indicating strong top-line growth. However, there is a notable fluctuation in EBIT and EBITDA margins, with EBIT turning negative in 2024, which could indicate operational inefficiencies or increased costs. Net profit margins remain robust, supported by a substantial increase in net income in 2024 compared to 2023.78
Positive
Balance Sheet
The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio that suggests a leveraged position, typical in the financial services industry. Equity has been increasing, demonstrating shareholder value creation. However, the equity ratio remains moderate, pointing to a balanced but slightly risk-averse approach to financing.72
Positive
Cash Flow
Cash flow analysis reveals fluctuating free cash flow with a significant positive change from negative in 2023 to positive in 2024. Operating cash flow covers net income well, but the volatility in free cash flow suggests potential challenges in managing capital expenditures and financing activities.65
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.34T | 2.81T | 1.63T | 1.58T | 1.42T | 1.33T |
| Gross Profit | 697.55B | 1.17T | -14.62B | -348.00M | -43.45B | -73.36B |
| EBITDA | 592.29B | 834.22B | 732.43B | 829.75B | 599.09B | 712.74B |
| Net Income | 369.90B | 346.13B | 290.34B | 317.38B | 192.38B | 302.70B |
Balance Sheet | ||||||
| Total Assets | 16.50T | 16.32T | 15.27T | 14.27T | 13.56T | 13.07T |
| Cash, Cash Equivalents and Short-Term Investments | 992.75B | 1.05T | 3.47T | 3.13T | 2.96T | 2.61T |
| Total Debt | 6.39T | 6.20T | 5.72T | 4.87T | 4.72T | 4.62T |
| Total Liabilities | 12.34T | 12.30T | 11.84T | 10.90T | 10.46T | 10.00T |
| Stockholders Equity | 4.07T | 3.94T | 3.36T | 3.26T | 3.03T | 2.99T |
Cash Flow | ||||||
| Free Cash Flow | 681.09B | 42.53B | -166.99B | 186.07B | 341.72B | 49.55B |
| Operating Cash Flow | 1.06T | 1.24T | 913.09B | 1.10T | 1.10T | 1.04T |
| Investing Cash Flow | -949.32B | -1.37T | -1.10T | -808.85B | -1.21T | -1.47T |
| Financing Cash Flow | 14.18B | -85.48B | 438.31B | -306.62B | 39.88B | 288.70B |
Orix Technical Analysis
Positive
22.62
Price Trends
21.25
Positive
20.83
Positive
21.28
Positive
Market Momentum
0.42
Negative
62.82
Neutral
71.93
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 22.62 is above the 20-day moving average (MA) of 22.05, above the 50-day MA of 21.25, and above the 200-day MA of 21.28, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IX.
Orix Risk Analysis
Orix disclosed 11 risk factors in its most recent earnings report. Orix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $50.34B | 10.69 | 28.29% | 1.40% | 9.42% | 128.55% | |
72 Outperform | $27.08B | 9.77 | 18.60% | 1.69% | 1.22% | 4.96% | |
69 Neutral | $24.34B | 11.25 | 8.65% | 2.66% | 0.31% | 34.40% | |
68 Neutral | $12.45B | 29.78 | 3.84% | 2.96% | -2.99% | -43.64% | |
68 Neutral | $7.12B | 12.66 | 17.46% | 6.96% | 9.07% | ― | |
66 Neutral | $2.84B | 3.19 | 136.84% | 10.94% | -5.16% | 59.60% | |
64 Neutral | $6.55B | 11.22 | 7.19% | 5.04% | 23.75% | 4.96% |
* Financial Sector Average
Performance Comparison
IX
Orix
22.62
-0.20
-0.88%
DFS
Discover Financial Services
200.05
64.73
47.83%
WU
Western Union
8.35
-3.01
-26.50%
ALLY
Ally Financial
40.44
-2.35
-5.49%
SYF
Synchrony Financial
70.61
20.86
41.93%
OMF
OneMain Holdings
58.90
11.55
24.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.