Orix (IX) AI Stock Analysis

• Market Cap: $29.88B
• Dividend Yield: 2.9%
• Average Volume (3M): 134.13K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.85
• Revenue Growth: 7.10%
• EPS Growth: 12.75%
• Country: US
• Employees: 33,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.56
• Shares Outstanding: 1,162,962,300
• 10 Day Avg. Volume: 130,457
• 30 Day Avg. Volume: 134,127
• PEG Ratio: 0.66
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -12.48
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $20.22B

• Rating: 72 Outperform
• Price Target: $28.00 ▲(3.63% Upside)

Orix's overall stock score is driven by strong earnings call outcomes and attractive valuation metrics. The company's robust financial performance is tempered by high leverage and cash flow challenges. Technical analysis indicates a stable outlook, while the earnings call highlights strategic growth initiatives and improved profit forecasts. The absence of significant corporate events leaves the focus on financial and strategic performance.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful business expansion and market penetration, supporting long-term financial health and competitive positioning.

Strategic Partnerships

The partnership with QIA enhances Orix's investment capabilities and access to capital, potentially driving growth in Japanese markets and diversifying revenue streams.

Shareholder Returns

Increasing the share buyback program demonstrates Orix's commitment to returning value to shareholders, which can improve investor confidence and stock attractiveness.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting Orix's ability to invest in growth opportunities or weather economic downturns.

Negative Free Cash Flow

Persistent negative free cash flow indicates cash outflows exceeding inflows, which can strain liquidity and hinder Orix's ability to fund operations or strategic initiatives.

Challenges in ORIX USA

Profit decline in ORIX USA due to credit losses and impairments reflects challenges in managing international operations, potentially affecting overall profitability.

Orix Business Overview & Revenue Model

Company Description

Orix Corporation (IX) is a leading integrated financial services group based in Japan, operating across various sectors, including leasing, financing, investment, and asset management. The company provides a wide range of products and services such as equipment leasing, project finance, and real estate investment, catering to both corporate clients and individual consumers. Orix is also involved in renewable energy, providing solutions that contribute to sustainable development.

How the Company Makes Money

Orix generates revenue through multiple streams, primarily by offering leasing and financing solutions to businesses for equipment and machinery. The company earns interest income from loans and financing arrangements, as well as fees from advisory services in investment and asset management. Significant partnerships with financial institutions and corporations enhance their market reach, facilitating project financing and investment opportunities. Additionally, Orix's involvement in renewable energy projects allows it to benefit from government incentives and long-term contracts, contributing to its overall earnings.

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. Overall, Orix is performing well but must address leverage and liquidity concerns to sustain growth.

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	2.58T	2.87T	2.81T	1.76T	1.63T	1.50T
Gross Profit	1.59T	1.20T	1.17T	1.62T	1.56T	1.41T
EBITDA	885.21B	926.89B	916.36B	732.43B	829.79B	603.52B
Net Income	439.78B	351.63B	346.13B	290.34B	317.38B	192.38B
Balance Sheet
Total Assets	17.60T	16.87T	16.32T	15.27T	14.27T	13.56T
Cash, Cash Equivalents and Short-Term Investments	1.28T	3.81T	3.70T	3.47T	3.13T	2.96T
Total Debt	6.52T	6.28T	6.20T	5.72T	4.87T	4.72T
Total Liabilities	13.08T	12.69T	12.30T	11.84T	10.90T	10.46T
Stockholders Equity	4.44T	4.09T	3.94T	3.54T	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: 27.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.02 is above the 20-day moving average (MA) of 26.44, above the 50-day MA of 25.65, and above the 200-day MA of 23.16, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 69.81 is Neutral, neither overbought nor oversold. The STOCH value of 90.53 is Negative, 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
OMF	78 Outperform	$7.61B	10.97	21.41%	6.45%	9.51%	29.38%
FCFS	77 Outperform	$6.79B	22.23	14.75%	1.04%	3.86%	28.06%
IX	72 Outperform	$29.88B	10.65	10.32%	2.90%	7.10%	12.75%
SYF	72 Outperform	$28.94B	8.78	21.64%	1.43%	-6.38%	19.65%
WU	71 Outperform	$2.87B	3.93	97.70%	10.40%	-2.51%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLY	67 Neutral	$13.06B	25.53	4.25%	2.83%	-6.89%	-33.20%

Orix Corporate Events

ORIX Corporation Announces Share Repurchase Status Update

On December 3, 2025, ORIX Corporation announced the status of its share repurchase program, which was authorized by its Board of Directors on May 12 and November 12, 2025. During the period from November 1 to November 30, 2025, ORIX repurchased 2,555,500 common shares at a total cost of JPY 10,301,571,500. This initiative is part of a broader plan to repurchase up to 60 million shares, valued at up to 150 billion yen, by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.

ORIX Completes Successful Tender Offer for I-NET Corp.

On November 18, 2025, ORIX Corporation announced the successful completion of a tender offer by its subsidiary, OFI 01 Corporation, for I-NET Corp. shares. The offer, which began on October 3, 2025, exceeded the minimum share threshold, allowing OFI 01 to proceed with a share consolidation, making it the sole shareholder of I-NET. This acquisition aligns with ORIX’s strategic focus on the IT and information services sector, aiming to enhance I-NET’s corporate value by leveraging its expertise in data centers, cloud, and digital transformation, combined with ORIX’s business platform and network.

ORIX Corporation Reports Strong Financial Growth in Semi-Annual Results

On November 13, 2025, ORIX Corporation released its semi-annual financial report, highlighting a significant increase in its financial performance for the six months ended September 30, 2025. The company reported total revenues of ¥1,564,497 million, a notable rise from the previous year’s ¥1,403,633 million. Income before income taxes also increased to ¥391,482 million, and net income attributable to ORIX shareholders rose to ¥271,096 million. This financial growth underscores ORIX’s strong market positioning and operational efficiency, benefiting its stakeholders and reinforcing its status as a key player in the financial services industry.

ORIX Corporation Reports Strong Q2 2025 Financial Results and Strategic Adjustments

On November 12, 2025, ORIX Corporation announced its second-quarter consolidated financial results for the period from April 1, 2025, to September 30, 2025. The company reported a significant increase in total revenues, operating income, and net income compared to the previous year, with comprehensive income attributable to shareholders rising by 715.4%. ORIX also revised its consolidated earnings forecast and year-end dividend forecast for the fiscal year ending March 31, 2026, and expanded the repurchase limit for its own shares. These developments indicate a strong financial performance and strategic adjustments that could enhance shareholder value and strengthen ORIX’s market position.

ORIX Corporation Updates on Share Repurchase Progress

On November 6, 2025, ORIX Corporation announced the status of its share repurchase program, initially resolved on May 12, 2025. Between October 1 and October 31, 2025, ORIX repurchased 1,680,100 common shares at a total cost of JPY 6,352,222,000. This is part of a larger plan to repurchase up to 40 million shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure. As of October 31, 2025, ORIX had repurchased a total of 22,739,700 shares for JPY 78,031,748,500, reflecting its commitment to strategic financial management.

ORIX Announces Corrections to I-NET Corp. Tender Offer

On October 8, 2025, ORIX Corporation announced corrections to its tender offer for I-NET Corp., initially commenced on October 3, 2025, by its subsidiary, OFI 01 Corporation. The corrections, prompted by notices from the Japan Fair Trade Commission, do not alter the terms of the purchase but adjust the tender offer registration statement and public notice details, ensuring compliance with regulatory requirements.

ORIX Corporation Updates on Share Repurchase Progress

On October 3, 2025, ORIX Corporation announced the status of its share repurchase program, which was initially resolved at a Board of Directors meeting on May 12, 2025. Between September 1 and September 30, 2025, ORIX repurchased 3,433,400 common shares for JPY 13,427,345,600. This is part of a broader initiative to repurchase up to 40 million shares by March 31, 2026, reflecting ORIX’s strategic financial management and potential impact on shareholder value.

ORIX Corporation Launches Tender Offer for I-NET Corp.

On October 2, 2025, ORIX Corporation announced that its subsidiary, OFI 01 Corporation, will commence a tender offer to acquire all common shares of I-NET Corp., aiming to make it a wholly owned subsidiary. This move is intended to enhance I-NET’s corporate value by leveraging ORIX’s business network and expertise, particularly in data centers, cloud services, and digital transformation. The transaction is supported by agreements with significant shareholders and is expected to strengthen ORIX’s position in the IT and information services sector.

ORIX Corporation Announces Disposal of Shares as Restricted Stock

On October 1, 2025, ORIX Corporation announced the disposal of its own shares as restricted stock to employees and subsidiaries under a Restricted Share Grant Plan. This move, authorized by a Board resolution in June 2025, involves 142,400 shares with a total value of 552,796,800 Yen. The initiative aims to incentivize employees, with transfer restrictions in place until November 30, 2028, and specific conditions for lifting these restrictions. This strategic decision is expected to enhance employee engagement and align interests with corporate goals, potentially impacting ORIX’s operational dynamics and stakeholder relations.

ORIX Corporation Issues 4.450% Notes Due 2030

On September 9, 2025, ORIX Corporation announced the issuance of 4.450% Notes due in 2030, marking a significant financial maneuver aimed at strengthening its capital structure. This move is expected to enhance ORIX’s liquidity and financial flexibility, potentially impacting its market positioning and providing reassurance to stakeholders about its long-term financial health.