ORIX (8591) AI Stock Analysis

• Market Cap: $3.57T
• Dividend Yield: 3.5%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.94
• Revenue Growth: 2.15%
• EPS Growth: 3.00%
• Country: JP
• Employees: 33,807
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 78.04
• Shares Outstanding: 1,162,962,300
• 10 Day Avg. Volume: 3,388,500
• 30 Day Avg. Volume: 3,378,016
• PEG Ratio: 1.82
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3,655.15
• Price Target Upside: 12.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: ¥3,300.00 ▲(1.48%Upside)

ORIX scores well due to robust financial performance and attractive valuation metrics. The technical analysis indicates moderate momentum, and the earnings call revealed a strategic focus on growth and shareholder returns, despite some challenges.

Positive Factors

Dividend Growth

Dividend growth is assumed to be relatively high, which is a positive factor for the valuation.

Shareholder Value

The company plans annual share buybacks of ¥100bn, which could positively impact shareholder value.

Negative Factors

Return on Equity

The return on equity is estimated to fall short of 10%, which affects the price-to-book ratio applied in the valuation.

Valuation

The price objective has been lowered from ¥3,730 to ¥3,620 due to revised estimates and assumptions.

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 Corporation makes money through a multifaceted revenue model that includes leasing and lending services, where it earns interest and fees from providing capital and equipment leasing solutions to businesses. The company also generates revenue from its life insurance products and asset management services, which involve managing investment funds and other financial instruments for clients. Additionally, ORIX earns income from its real estate operations, including property development, management, and sales. Strategic investments and partnerships across different industries also contribute to its earnings, allowing ORIX to capitalize on diverse revenue streams and market opportunities.

ORIX Financial Statement Overview

Summary

ORIX demonstrates strong revenue and profit growth with effective cost management. The balance sheet reflects solid financial health, though cash flow management needs improvement. Overall, the company shows a strong financial profile aligned with sustainable growth.

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.

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.

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.87T	2.81T	1.63T	1.58T	1.42T
Gross Profit	1.20T	1.17T	-18.56B	368.00M	-58.52B
EBITDA	926.89B	834.22B	732.43B	687.82B	603.52B
Net Income	351.63B	346.13B	290.34B	317.38B	192.38B
Balance Sheet
Total Assets	16.87T	16.32T	15.27T	14.27T	13.56T
Cash, Cash Equivalents and Short-Term Investments	1.21T	1.05T	1.29T	971.10B	959.91B
Total Debt	6.28T	6.20T	5.72T	4.87T	4.72T
Total Liabilities	12.69T	12.30T	11.84T	10.90T	10.46T
Stockholders Equity	4.09T	3.94T	3.36T	3.26T	3.03T
Cash Flow
Free Cash Flow	-57.48B	42.53B	-166.99B	186.07B	341.72B
Operating Cash Flow	1.30T	1.24T	913.09B	1.10T	1.10T
Investing Cash Flow	-1.31T	-1.37T	-1.10T	-808.85B	-1.20T
Financing Cash Flow	149.32B	-85.48B	438.31B	-306.62B	39.88B

ORIX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3252.00
• 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 JP:8591, the sentiment is Positive. The current price of 3252 is above the 20-day moving average (MA) of 3158.40, above the 50-day MA of 3042.80, and above the 200-day MA of 3152.20, indicating a bullish trend. The MACD of 67.36 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 90.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8591.

ORIX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8591	72 Outperform	$3.57T	10.76	8.65%	3.50%	2.15%	3.00%
Sector *	67 Neutral	$16.89B	11.79	9.73%	3.75%	11.97%	-8.33%
AK5		€3.84B	19.31	4.89%	3.36%	―	―
CSASF		$4.28B	7.10	9.28%	0.03%	―	―
MIUFF		$10.78B	10.07	7.65%	0.03%	―	―
8425	75 Outperform	¥298.45B	6.88		5.05%	5.99%	6.60%
8566	61 Neutral	¥161.83B	10.34		3.81%	1.24%	38.84%