Orix (IX) AI Stock Analysis

• Market Cap: $31.50B
• Dividend Yield: 2.72%
• Average Volume (3M): 462.94K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.89
• Revenue Growth: 7.10%
• EPS Growth: 12.75%
• Country: US
• Employees: 33,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 1,124,106,600
• 10 Day Avg. Volume: 519,025
• 30 Day Avg. Volume: 462,945
• PEG Ratio: 3.31
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 2.98
• Enterprise Value/Market Cap: 339.08
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.61
• Revenue Forecast (FY): $20.47B

• Rating: 70 Outperform
• Price Target: $33.00 ▲(22.13% Upside)
• Action: Reiterated Date: 02/09/26
• Date: Action: Reiterated 02/09/26

The score is primarily driven by mixed financial quality—strong growth/profitability but constrained by leverage and negative free-cash-flow trend. Technicals are supportive due to a clear uptrend, though overbought signals add near-term risk. Valuation and capital returns from the earnings call (moderate P/E, dividend, and expanded buybacks) provide additional support, offset by management’s cautious guidance and disclosed operating/credit headwinds.

Positive Factors

Diversified business model

ORIX’s multi‑segment franchise—leasing, asset management, insurance, real estate and lending—provides durable revenue diversification and multiple cash‑generation engines. This mix reduces single‑market cyclicality, supports steady fee and interest income, and enables capital redeployment across segments over 2–6 months.

Robust revenue & profit growth

Recent double‑digit revenue growth and healthy margins indicate the core businesses are expanding and retaining value. Sustained top‑line momentum plus a solid net margin provides structural earnings power that can support reinvestment, paying down liabilities or funding new originations through the medium term.

Active capital recycling & returns

ORIX’s demonstrated ability to monetize mature assets and redeploy proceeds, plus a large buyback program, shows disciplined capital allocation. Active recycling improves ROE and funds strategic investments without solely relying on debt, enhancing long‑term capital efficiency and shareholder returns.

Negative Factors

High leverage

The company’s relatively high leverage raises structural sensitivity to rising funding costs and asset shocks. With modest equity buffers, leverage constrains flexibility for new lending or absorbing losses and requires ongoing capital management to sustain credit metrics and investment capacity over the coming months.

Weak cash conversion

Earnings have not been converting fully into free cash flow, signaling cash outflows exceeding inflows and reduced internal funding capacity. Persistent negative FCF limits organic financing of investments and buybacks, potentially forcing additional disposals or higher leverage to meet strategic commitments.

Operational exposures (China & U.S. legacy)

Material declines in Chinese inbound travel hurt airport concessions and Kansai real estate revenues, while legacy U.S. lending and real estate impairments require heightened underwriting and potential provisions. These region‑specific headwinds can pressure segment profits and cash flows over multiple quarters.

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 makes money through a combination of (1) recurring financial-services income and (2) investment/asset-based earnings. Key revenue and earnings drivers typically include: (a) Interest income and financing margins: ORIX originates loans and other financing (including equipment finance/leasing and structured finance). It earns interest spread between funding costs and yields on loans/leases, plus arrangement and underwriting-related fees where applicable. (b) Lease and service income: In leasing, ORIX earns lease payments and may generate ancillary service fees tied to equipment lifecycle services (e.g., maintenance, disposition). (c) Asset management fees: Through its asset management activities, ORIX earns management fees (often based on assets under management) and may earn performance/incentive fees when investment returns exceed specified benchmarks or hurdles, depending on fund terms. (d) Insurance premiums and investment income: In life insurance operations, ORIX earns premium revenue and profits from underwriting results (premiums minus claims/benefits and expenses) and from investing the insurance float (investment income and realized/unrealized gains/losses on the investment portfolio). (e) Real estate and operating income: ORIX invests in, develops, and manages real estate and related businesses; it generates rental income, property/asset management fees, and may realize gains on sales of properties or real estate-related investments. (f) Principal investments and capital gains: ORIX deploys its own balance sheet into private equity-like investments, operating businesses, and other assets. It earns dividends/distributions from investees, equity-method income where applicable, and realizes gains or losses when exiting investments or selling assets. (g) Other financial services fees: Depending on product, ORIX may also earn commissions, transaction fees, servicing fees, and advisory/arrangement fees. Overall earnings are influenced by credit performance (loan losses), interest rate and funding conditions (net interest margins), market conditions affecting asset valuations and exits (capital gains), and the scale and performance of assets under management and insurance liabilities.

Orix Financial Statement Overview

Summary

Strong revenue growth and solid margins support the score, but it is held back by high leverage (debt-to-equity 1.54) and weak cash conversion/negative free cash flow growth (FCF growth -108.44%, operating cash flow to net income 0.39).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.13T	2.87T	2.81T	2.66T	2.51T	2.29T
Gross Profit	1.14T	1.20T	1.17T	1.04T	940.79B	812.44B
EBITDA	1.21T	944.66B	916.36B	813.04B	743.78B	655.33B
Net Income	469.53B	351.63B	346.13B	290.34B	317.38B	192.38B
Balance Sheet
Total Assets	18.13T	16.87T	16.32T	15.29T	14.27T	13.56T
Cash, Cash Equivalents and Short-Term Investments	1.42T	1.23T	1.05T	1.26T	971.10B	959.91B
Total Debt	6.71T	6.54T	6.46T	6.01T	5.16T	5.04T
Total Liabilities	13.40T	12.69T	12.30T	11.67T	10.90T	10.46T
Stockholders Equity	4.58T	4.09T	3.94T	3.54T	3.26T	3.03T
Cash Flow
Free Cash Flow	0.00	1.20T	1.17T	777.66B	990.65B	1.04T
Operating Cash Flow	0.00	1.27T	1.25T	881.23B	1.03T	1.08T
Investing Cash Flow	0.00	-1.31T	-1.36T	-1.14T	-784.99B	-1.18T
Financing Cash Flow	0.00	146.27B	-100.99B	480.70B	-330.47B	20.19B

Orix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IX, the sentiment is Neutral. The current price of 27.02 is below the 20-day moving average (MA) of 33.13, below the 50-day MA of 32.17, and above the 200-day MA of 26.86, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 37.99 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IX.

Orix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IX	70 Outperform	$31.50B	10.73	10.88%	2.72%	7.10%	12.75%
WU	68 Neutral	$2.90B	6.09	53.92%	10.18%	-2.51%	17.47%
OMF	68 Neutral	$5.91B	10.25	23.40%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FCFS	67 Neutral	$8.38B	21.69	15.23%	0.99%	3.86%	28.06%
SYF	67 Neutral	$22.65B	8.41	21.09%	1.34%	-6.38%	19.65%
ALLY	51 Neutral	$11.55B	16.52	5.74%	2.58%	-6.89%	-33.20%

Orix Corporate Events

ORIX Exits Peak Utility Platform With Sale of IX PUSG Holdings to Greenbelt-Affiliated SPC

On March 11, 2026, ORIX Corporation reported that an affiliate signed an agreement on March 10, 2026, U.S. time, to transfer 100% of the equity in IX PUSG Holdings, LLC, the holding company for Peak Utility Services Group, Inc., to Seahawk Buyer, LLC, an SPC affiliated with Greenbelt Capital Partners. The deal marks ORIX’s exit from Peak, a U.S. utility infrastructure services provider it backed in 2018 and helped expand through acquisitions and operational improvements, and underscores ORIX Capital Partners’ strategy of monetizing a mature platform after record revenue at Peak, potentially freeing capital and reshaping ORIX’s private equity portfolio exposure in U.S. energy and infrastructure services.

The most recent analyst rating on (IX) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Sells SGK Holdings to Carlyle-Backed SPC as Part of Capital Recycling Push

On March 4, 2026, ORIX announced it will transfer all shares of its consolidated subsidiary SGK Holdings Corporation to a special purpose company backed by The Carlyle Group, exiting its 2020 investment in SUGIKO GROUP HOLDINGS, a major renter of scaffolding and temporary construction materials. The deal aligns with ORIX’s long-term vision and three-year plan to recycle capital and enhance ROE, while handing SUGIKO to a sector-focused private equity owner as the construction industry faces labor shortages and inflation, potentially positioning the business for continued value creation under Carlyle’s infrastructure expertise.

SGK Holdings, established in 2020 to own SUGIKO GROUP HOLDINGS, has posted steady assets and net assets growth, while SUGIKO itself is expected to achieve record sales and operating profit this fiscal year, supported by governance and growth initiatives under ORIX. Following the transaction, the Carlyle-backed SPC will own 100% of SGK Holdings, and ORIX plans to continue pursuing growth-support investments that leverage its group network, signaling an ongoing pivot toward more efficient capital deployment and portfolio rotation.

The most recent analyst rating on (IX) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Completes ¥150 Billion Share Buyback and Moves to Cancel 38.9 Million Shares

On March 2, 2026, ORIX Corporation reported it had completed a share repurchase program authorized by its board in May and November 2025, buying back 38,206,600 common shares for roughly ¥150 billion through market purchases up to February 27, 2026. The buyback, which fell short of the 60 million-share ceiling, underscores ORIX’s continued use of capital returns to support shareholder value and optimize its balance sheet.

The company also disclosed that on February 27, 2026 it resolved to cancel 38,855,620 of its own common shares, with the cancellation scheduled for March 10, 2026, in line with its policy of limiting treasury stock to about 2% of total issued shares. This move is set to reduce shares outstanding and potentially enhance earnings per share, reinforcing ORIX’s shareholder-friendly capital management stance and signaling disciplined control over its treasury share levels.

The most recent analyst rating on (IX) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Posts Strong Nine-Month FY2025 Earnings Surge and Higher Interim Dividend

On February 9, 2026, ORIX reported consolidated financial results for the nine months ended December 31, 2025, showing strong growth across key metrics. Total revenues rose 11.8% year on year to ¥2.41 trillion, operating income climbed 26.0% to ¥366.3 billion, and net income attributable to ORIX shareholders jumped 43.4% to ¥389.7 billion, driving basic earnings per share up to ¥347.14.

Income before income taxes increased 48.1% to ¥567.7 billion over the same period, while comprehensive income attributable to shareholders more than doubled, up 131.9% to ¥771.8 billion, underscoring robust performance. ORIX’s balance sheet also expanded, with total assets reaching ¥18.13 trillion and the shareholders’ equity ratio improving to 25.3%, while interim dividends for the fiscal year ending March 31, 2026, rose to ¥93.76 per share, signaling enhanced shareholder returns.

The most recent analyst rating on (IX) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Details January Buyback Progress Under 2025 Authorization

ORIX disclosed that between January 1 and 31, 2026 it repurchased 4,407,600 common shares for ¥20.8 billion via market purchases, advancing a Board-authorized buyback program running through March 31, 2026. The cumulative total under the May and November 2025 authorizations now stands at 34,024,800 shares for ¥128.1 billion, underscoring management’s capital-return commitment and potential support for shareholder value as the company navigates its global financial services portfolio.

The most recent analyst rating on (IX) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Publishes Updated Corporate Governance and Diversity Report on January 16, 2026

On January 16, 2026, ORIX Corporation filed a Form 6-K in the United States, providing an English translation of its latest Corporate Governance Report that had been publicly disclosed to the Tokyo Stock Exchange the same day. The report confirms that ORIX complies with all principles of Japan’s Corporate Governance Code, highlights a robust governance framework aimed at objective, transparent management, and formally states that the company does not engage in cross-shareholdings of publicly traded shares while strictly regulating related-party transactions through internal rules and board oversight. It also underscores the company’s sustainability governance, with progress on environmental and social issues regularly discussed by a Sustainability Committee chaired by the Group CEO and key matters reported to the board, and details ORIX’s strategic emphasis on diversity and human capital, including measurable targets for female, mid-career and non-Japanese employees as of March 31, 2025, reinforcing its positioning as a governance- and ESG-focused issuer for global investors.

The most recent analyst rating on (IX) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.

ORIX Reports Progress on Ongoing Share Repurchase Program

On January 7, 2026, ORIX Corporation reported the status of its ongoing share repurchase program authorized by board resolutions passed on May 12 and November 12, 2025, confirming that during the period from December 1 to December 31, 2025, it bought back 4,322,000 common shares on the market for a total of ¥18.94 billion under a discretionary dealing contract. As of December 31, 2025, cumulative repurchases under this authorization had reached 29,617,200 shares for ¥107.27 billion out of an approved ceiling of up to 60 million shares or ¥150 billion to be executed by March 31, 2026, underscoring ORIX’s continued use of buybacks as a capital allocation tool that can support shareholder returns and potentially enhance earnings per share by reducing the free float.

The most recent analyst rating on (IX) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Orix stock, see the IX Stock Forecast page.