Orix (IX) AI Stock Analysis

• Market Cap: $27.11B
• Dividend Yield: 3.23%
• Average Volume (3M): 142.69K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.79
• 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: 144,093
• 30 Day Avg. Volume: 142,693
• 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: 2.26
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $28.00
• Price Target Upside: 12.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $28.00 ▲(12.27% Upside)

Orix's overall stock score reflects strong financial performance with robust revenue growth and profitability, despite challenges with high leverage and negative cash flow. The positive sentiment from the earnings call, highlighting significant profit increases and shareholder returns, further supports the score. Technical analysis indicates potential short-term weakness, but the valuation remains reasonable.

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	2.79T	2.87T	2.81T	2.66T	2.51T	2.29T
Gross Profit	1.48T	1.20T	1.17T	1.04T	940.79B	812.44B
EBITDA	842.82B	926.89B	916.36B	813.04B	743.78B	655.33B
Net Income	372.18B	351.63B	346.13B	290.34B	317.38B	192.38B
Balance Sheet
Total Assets	17.00T	16.87T	16.32T	15.27T	14.27T	13.56T
Cash, Cash Equivalents and Short-Term Investments	1.21T	3.81T	3.70T	3.47T	3.13T	2.96T
Total Debt	6.38T	6.28T	6.20T	5.72T	4.87T	4.72T
Total Liabilities	12.78T	12.69T	12.30T	11.84T	10.90T	10.46T
Stockholders Equity	4.15T	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: Neutral
• Last Price: 24.94
• 50DMA: Negative
• 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 Neutral. The current price of 24.94 is below the 20-day moving average (MA) of 25.69, below the 50-day MA of 25.97, and above the 200-day MA of 22.34, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, 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
FCFS	77 Outperform	$6.98B	24.20	14.17%	0.99%	2.49%	24.41%
SYF	73 Outperform	$26.61B	7.81	21.52%	1.54%	-6.38%	19.65%
WU	70 Outperform	$2.68B	3.13	135.32%	11.34%	-3.83%	62.05%
IX	69 Neutral	$27.11B	11.36	9.23%	3.23%	2.89%	2.13%
OMF	68 Neutral	$6.33B	9.63	20.47%	7.69%	9.41%	13.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLY	56 Neutral	$11.84B	24.98	4.18%	3.01%	-5.33%	-32.99%

Orix Corporate Events

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.

ORIX Corporation Updates on Share Repurchase Program

On September 3, 2025, ORIX Corporation announced the status of its share repurchase program, which was initiated following a Board of Directors resolution on May 12, 2025. During the period from August 1 to August 31, 2025, ORIX repurchased 4,680,500 common shares at a total cost of JPY 17,341,974,200. This repurchase is part of a larger plan to buy back up to 40,000,000 shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.

ORIX Corporation Reports Strong Q1 2025 Financial Results

ORIX Corporation released its first quarter consolidated financial results for the period from April 1, 2025, to June 30, 2025, on August 7, 2025. The company reported a significant increase in total revenues, operating income, and net income compared to the previous year, with revenues reaching ¥768,641 million, a year-on-year increase of 8.5%. Operating income rose by 50.4% to ¥129,750 million, and net income attributable to ORIX shareholders increased by 23.7% to ¥107,288 million. Despite these positive results, comprehensive income attributable to shareholders decreased by 30.3% compared to the same period last year. The financial results highlight ORIX’s strong performance in the first quarter, positioning it favorably within the industry.

ORIX Corporation Updates on Share Repurchase Status as of August 2025

On August 5, 2025, ORIX Corporation announced the status of its share repurchase plan, initially resolved on May 12, 2025. During the period from July 1 to July 31, 2025, ORIX repurchased 5,417,600 common shares at a total cost of JPY 17,977,323,200. This action is part of a broader plan to repurchase up to 40 million shares by March 31, 2026, reflecting ORIX’s strategic financial management and commitment to enhancing shareholder value.

ORIX Subsidiary’s Tender Offer for Ascentech Unsuccessful

On August 5, 2025, ORIX Corporation announced that its subsidiary, OPI18 Corporation, concluded a tender offer for Ascentech K.K. shares without purchasing any shares, as the number of shares tendered did not meet the minimum required. This outcome may impact ORIX’s strategic positioning and investment plans, as the acquisition was intended to expand its influence in the market.