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ORIX Corporation (JP:8591)
:8591
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ORIX
(8591)
Select Model
Select Model
Rating:73Outperform
Price Target:
¥4,277.00
▲(13.15% Upside)
ORIX's strong financial performance and positive earnings call are significant strengths, supported by reasonable valuation metrics. Technical indicators suggest a positive trend, though short-term caution is advised due to negative MACD.
Positive Factors
Revenue Growth
Strong revenue growth indicates ORIX's ability to expand its market presence and enhance profitability, supporting long-term business stability.
Investment Pipeline
A robust investment pipeline ensures sustained growth opportunities and diversification, strengthening ORIX's competitive position in the market.
Balance Sheet Health
A strong balance sheet with balanced leverage enhances financial stability, allowing ORIX to navigate economic fluctuations effectively.
Negative Factors
Challenges in U.S. Market
Challenges in the U.S. market could hinder ORIX's growth in this region, affecting its overall profitability and market expansion efforts.
Cash Flow Management
Inconsistent cash flow management can limit ORIX's ability to invest in growth opportunities and manage financial obligations efficiently.
Segment Profit Decline
A decline in segment profits, particularly in aircraft and ship sectors, may impact ORIX's overall revenue diversification and profitability.
ORIX (8591) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$4.00T
Dividend Yield3.08%
Average Volume (3M)2.83M
Price to Earnings (P/E)11.3
Beta (1Y)0.94
Revenue Growth3.16%
EPS Growth2.08%
CountryJP
Employees33,807
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)94.63
Shares Outstanding1,162,962,300
10 Day Avg. Volume2,841,690
30 Day Avg. Volume2,832,490
Financial Highlights & Ratios
PEG Ratio3.26
Price to Book (P/B)0.86
Price to Sales (P/S)1.23
P/FCF Ratio2.93
Enterprise Value/Market Cap2.21
Enterprise Value/Revenue3.01
Enterprise Value/Gross Profit7.09
Enterprise Value/Ebitda9.01
Forecast
1Y Price Target
$3,940.09Price Target Upside4.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 generates revenue through various streams primarily centered around its financial services and asset management operations. Key revenue sources include leasing income from equipment and real estate, interest income from loans and financing services, and management fees from its investment funds. The company has established partnerships with various industries, enabling it to provide tailored financial solutions and expand its clientele. Additionally, its investments in renewable energy projects contribute to long-term revenue through energy sales and government incentives, reinforcing ORIX's commitment to sustainable development while generating consistent cash flow.
ORIX Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with significant net income and pretax profit growth. Successful capital gains and a robust investment pipeline indicate positive momentum. However, challenges in the U.S. market, particularly due to tariffs and interest rates, and a decline in certain segments' profits were noted. The full-year forecast remains under review due to uncertainties.Q1-2026 Updates
Positive Updates
Strong Net Income Growth
Net income for the first quarter was JPY 107.3 billion, an increase of JPY 20.6 billion year-on-year, representing a 24% growth.
Increased ROE and Pretax Profit
Annualized ROE was 10.4%. Pretax profit increased by JPY 35.3 billion year-on-year to JPY 455.5 billion.
Successful Capital Gains
Total capital gain of JPY 45.1 billion from multiple exits, including the sale of Hotel Universal Park Vida.
Share Buyback Progress
Completed acquisition of JPY 40.9 billion out of total JPY 100 billion share buyback program.
Robust Investment Pipeline
Investment pipeline is strong at JPY 2 trillion, focusing on operational investments.
Tourism Growth in Kansai
Kansai International Airport experienced growth in international passenger numbers, and performance is steady.
Strong Performance in Finance and Operations
Finance profit increased by 5% and operations profit increased by 5% year-on-year.
Negative Updates
Challenges in U.S. Business
ORIX USA reported a decrease in profits due to tariffs and high interest rates impacting real estate and investment operations.
Decline in Aircraft and Ship Segment Profits
Segment profit decreased by JPY 1.9 billion, a 16% decline, reaching JPY 9.9 billion due to market factors.
Impairment in Private Equity
Impairment of investment in an equity method affiliate in the U.S. due to tariff impacts.
Under Review Financial Forecast
Full year financial forecast is under review due to market uncertainties and skewed earnings towards the first half.
Company Guidance
During the ORIX Corporation's first-quarter earnings call for the fiscal year ending March 2026, several key financial metrics were highlighted. The company reported a net income of JPY 107.3 billion, marking a year-on-year increase of JPY 20.6 billion, with an annualized ROE of 10.4%. The pretax profit rose to JPY 455.5 billion, up by JPY 35.3 billion from the previous year. The company's capital recycling efforts recorded a capital gain of JPY 45.1 billion, with cash inflows from sales at JPY 130 billion and outflows from new investments at JPY 150 billion. Shareholder returns included the completion of acquiring JPY 40.9 billion of a JPY 100 billion share buyback program. The company also maintained a dividend payout policy of 39% of first-half net income. Additionally, ORIX detailed significant divestments and investments, including the sale of shares in Greenko for USD 1.282 billion and a new investment in AM Green Luxembourg. The company emphasized its strategic focus on maintaining flexibility in shareholder returns and investment strategies amid macroeconomic uncertainties.ORIX Financial Statement Overview
Summary
ORIX has shown strong revenue and profit growth with stable margins and effective cost management. The balance sheet is solid, though cash flow management could be optimized for further strength.Income Statement
ORIX has demonstrated strong revenue growth, particularly a significant increase from 2021 to 2025. The gross profit margin has improved, indicating efficient cost management. The EBIT and EBITDA margins are robust, with the net profit margin reflecting consistent profitability. The company has shown resilience in a fluctuating market, with stable income growth over multiple years.82
Very Positive
Balance Sheet
ORIX's balance sheet shows a balanced leverage with a debt-to-equity ratio that is reasonable for the industry. The company maintains a healthy equity ratio, indicating strong financial stability. The return on equity is solid, reflecting effective use of shareholder funds, although it has experienced slight fluctuations. Overall, the balance sheet is strong, with potential for further optimization.75
Positive
Cash Flow
The company has faced challenges in maintaining consistent free cash flow, with periods of negative free cash flow affecting the overall cash flow health. However, the operating cash flow remains strong and exceeds net income, indicating operational efficiency. The free cash flow to net income ratio suggests potential areas for improvement to enhance cash flow stability.68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.94T | 2.87T | 2.81T | 2.66T | 2.51T | 2.29T |
| Gross Profit | 1.25T | 1.20T | 1.17T | 1.04T | 940.79B | 812.44B |
| EBITDA | 981.24B | 944.66B | 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 | 15.29T | 14.27T | 13.56T |
| Cash, Cash Equivalents and Short-Term Investments | 1.21T | 1.23T | 1.05T | 1.26T | 971.10B | 959.91B |
| Total Debt | 6.38T | 6.54T | 6.46T | 6.01T | 5.16T | 5.04T |
| Total Liabilities | 12.77T | 12.69T | 12.30T | 11.67T | 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 | 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
Positive
3780.00
Price Trends
3804.06
Positive
3500.87
Positive
3247.77
Positive
Market Momentum
3.85
Negative
52.92
Neutral
78.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8591, the sentiment is Positive. The current price of 3780 is below the 20-day moving average (MA) of 3810.05, below the 50-day MA of 3804.06, and above the 200-day MA of 3247.77, indicating a bullish trend. The MACD of 3.85 indicates Negative momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8591.
ORIX Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.70T | 11.09 | 8.77% | 3.44% | 7.07% | 19.73% | |
73 Outperform | $4.00T | 11.35 | 9.23% | 3.08% | 3.16% | 2.08% | |
72 Outperform | ¥355.72B | 7.46 | ― | 3.98% | 19.11% | 8.89% | |
70 Outperform | ¥178.78B | 11.45 | ― | 3.11% | 4.07% | 12.68% | |
68 Neutral | ¥708.58B | 13.49 | 8.40% | 3.81% | 7.25% | -0.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $578.30B | 8.57 | 9.55% | 3.12% | 14.32% | -3.45% |
* Financial Sector Average
JP:8591
ORIX
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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.