Orix (IX) AI Stock Analysis

• Market Cap: $37.79B
• Dividend Yield: 2.72%
• Average Volume (3M): 179.19K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.83
• 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: 1,162,962,300
• 10 Day Avg. Volume: 224,326
• 30 Day Avg. Volume: 179,191
• 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: 299.01
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 9.94
• Enterprise Value/Ebitda: 9.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $36.00 ▲(33.23% 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 segment profits

ORIX’s profit growth is broad-based across Finance, Operations and Investments, reducing single-market dependency. Diversified segment contributions help stabilize earnings cycles, allow cross-subsidization during downturns, and support sustained revenue generation and strategic redeployment over the medium term.

Active capital recycling & buybacks

The company demonstrates disciplined capital allocation: material divestment inflows, reinvestment activity and an expanded JPY150bn buyback. This recycling model enhances returns, funds strategic growth without permanently increasing leverage, and provides a durable mechanism to optimize asset mix and shareholder returns.

Governance & ESG focus

Formalized governance and diversity targets, oversight of related-party transactions, and a board-level sustainability committee signal stronger decision frameworks. Improved governance reduces execution and reputational risk, supports consistent capital-allocation discipline, and enhances appeal to long-term institutional investors.

Negative Factors

High leverage

A debt-to-equity ratio near 1.54 leaves ORIX sensitive to rising funding costs and credit shocks. Sustained leverage limits balance-sheet flexibility, increases interest expense vulnerability, and constrains the company’s ability to absorb asset losses or pursue opportunistic investments without raising refinancing or operational risk over the medium term.

Weak cash conversion

Material negative FCF growth and low operating cash flow relative to net income indicate earnings are not converting to cash. This persistent cash-conversion gap can force reliance on asset sales or debt to fund buybacks and investments, undermining long-term liquidity and capital-allocation durability if trends do not reverse.

Legacy U.S. credit & real-estate risks

Ongoing legacy impairments in U.S. lending and real estate reflect credit-quality headwinds that can recur through provisioning or valuation write-downs. These structural portfolio risks demand tighter underwriting and capital buffers, and may limit sustainable earnings and require prolonged remediation efforts.

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 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

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: Positive
• Last Price: 27.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 27.02 is below the 20-day moving average (MA) of 32.94, below the 50-day MA of 30.91, and above the 200-day MA of 25.82, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 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
IX	70 Outperform	$37.79B	12.71	11.39%	2.72%	7.10%	12.75%
SYF	70 Outperform	$25.32B	7.85	21.30%	1.34%	-6.38%	19.65%
FCFS	69 Neutral	$8.10B	24.81	15.26%	0.99%	3.86%	28.06%
OMF	68 Neutral	$6.66B	8.66	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	64 Neutral	$3.07B	4.19	51.86%	10.18%	-2.51%	17.47%
ALLY	60 Neutral	$12.97B	17.76	5.80%	2.58%	-6.89%	-33.20%

Orix Corporate Events

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.

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.

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.

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.

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.

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.

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.

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.

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