Education
About Us
Working with TipRanks
Follow Us
ORIX Corporation (JP:8591)
:8591
Top Page
ORIX
(OTC:8591)
Select Model
Select Model
Rating:80Outperform
Price Target:
¥4,462.00
▲(9.44% Upside)
ORIX's strong financial performance, positive earnings call, and solid technical indicators contribute to a high overall score. The upward revision of profit forecasts and strategic initiatives further enhance its attractiveness, despite some challenges in specific segments.
Positive Factors
Revenue Growth
Consistent revenue growth over multiple years indicates a robust business model and effective market strategies, supporting long-term sustainability.
Strategic Partnerships
The partnership with Qatar Investment Authority enhances ORIX's investment capabilities and market reach, fostering growth and diversification.
Profitability and ROE
Record profitability and strong ROE reflect efficient operations and effective capital utilization, ensuring financial health and shareholder value.
Negative Factors
Challenges in ORIX USA Segment
Declining profits in ORIX USA highlight operational challenges and potential risks in international markets, affecting overall performance.
Increased Costs for Osaka IR Project
Rising costs in major projects like Osaka IR can pressure margins and require careful management to maintain profitability and project viability.
Decreased Profit in Banking and Credit Segment
Profit decline in the Banking and Credit segment suggests challenges in managing financial products, impacting segment performance and growth.
ORIX (8591) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.51T
Dividend Yield3.75%
Average Volume (3M)3.59M
Price to Earnings (P/E)10.8
Beta (1Y)0.96
Revenue Growth6.21%
EPS Growth11.62%
CountryJP
Employees33,807
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,162,962,300
10 Day Avg. Volume3,620,000
30 Day Avg. Volume3,587,313
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)387
Revenue Forecast (FY)¥3.06T
ORIX Business Overview & Revenue Model
Company DescriptionORIX Corporation (8591) is a diversified financial services conglomerate based in Japan, operating across multiple sectors, including leasing, financing, investment, and asset management. The company provides a wide range of services such as equipment leasing, real estate financing, and corporate finance, as well as engaging in venture capital and private equity investments. ORIX also has a significant presence in the renewable energy sector, focusing on solar and wind energy projects, further enhancing its portfolio of services and products.
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:Nov 12, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 09, 2026
Earnings Call Sentiment Positive
The earnings call highlighted substantial growth in profits and successful strategic initiatives, such as the establishment of a PE fund with Qatar Investment Authority and strong capital recycling. However, challenges in certain segments, like ORIX USA, and increased costs in projects like Osaka IR were noted. Despite these challenges, the company showed strong financial performance and future strategic direction.Q2-2026 Updates
Positive Updates
Upward Revision of Earnings Forecast
ORIX raised its net profit forecast from JPY 380 billion to JPY 440 billion for the fiscal year ending March 2026, and increased the full-year dividend forecast per share from JPY 132.13 to JPY 153.67.
Record High Net Income for First Half
Net income for the first half of fiscal year 2026 was JPY 271.1 billion, a record high for the first half year, representing a 48% increase compared to the same period last year.
Establishment of PE Fund with Qatar Investment Authority
A PE fund was established with the Qatar Investment Authority with a total scale of USD 2.5 billion, marking ORIX's first incorporation of third-party funds into its business.
Strong Performance in Finance, Operation, and Investment Categories
All three categories showed profit growth year-on-year, with ROE improving and achieving a healthy 71% of the initial full-year net income forecast.
Successful Capital Recycling
ORIX recorded capital gains of JPY 157.1 billion from asset sales, including significant gains from Greenko Energy, Hotel Universal Port VITA, and Ormat.
Negative Updates
Challenges in ORIX USA Segment
ORIX USA segment profit decreased by JPY 18.1 billion year-on-year, resulting in a loss of JPY 1.8 billion, due to a decrease in capital gains and booking of credit costs and impairments related to real estate financing.
Increased Costs for Osaka IR Project
The estimated costs for the Osaka IR project increased from JPY 1.27 trillion to approximately JPY 1.51 trillion due to inflation, although the company believes it will not significantly impact project profitability.
Decreased Profit in Banking and Credit Segment
Profit in the Banking and Credit segment decreased by JPY 600 million or 5% year-on-year to JPY 12.5 billion, impacted by losses from the sale of public and corporate bonds.
Company Guidance
During the ORIX Corporation's second quarter financial results briefing for the fiscal year ending in March 2026, several key metrics and guidance were highlighted. The company revised its net profit forecast upward from JPY 380 billion to JPY 440 billion, and adjusted the full-year dividend forecast per share from JPY 132.13 to JPY 153.67. They also expanded the share buyback program from JPY 100 billion to JPY 150 billion. ORIX aims to achieve a long-term vision with a target of 15% ROE and JPY 1 trillion in net profit by fiscal year 2035, while maintaining an 11% ROE and JPY 100 trillion in AUM by March 2028. ORIX's first half net income was JPY 271.1 billion, marking a 48% increase from the previous year, and the annualized ROE reached 12.7%. The company also announced a joint PE fund with the Qatar Investment Authority and highlighted strategic investments and capital recycling efforts.ORIX Financial Statement Overview
Summary
ORIX shows strong revenue and profit growth with stable margins and effective cost management. The balance sheet is solid, though cash flow management could be optimized further.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 | 2.72T | 2.87T | 2.81T | 2.66T | 2.51T | 2.29T |
| Gross Profit | 1.36T | 1.20T | 1.17T | 1.04T | 940.79B | 812.44B |
| EBITDA | 1.02T | 944.66B | 916.36B | 813.04B | 743.78B | 655.33B |
| Net Income | 439.78B | 351.63B | 346.13B | 290.34B | 317.38B | 192.38B |
Balance Sheet | ||||||
| Total Assets | 17.60T | 16.87T | 16.32T | 15.29T | 14.27T | 13.56T |
| Cash, Cash Equivalents and Short-Term Investments | 1.28T | 1.23T | 1.05T | 1.26T | 971.10B | 959.91B |
| Total Debt | 6.52T | 6.54T | 6.46T | 6.01T | 5.16T | 5.04T |
| Total Liabilities | 13.08T | 12.69T | 12.30T | 11.67T | 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 | 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
4077.00
Price Trends
3875.54
Positive
3706.18
Positive
3336.92
Positive
Market Momentum
97.46
Negative
74.39
Negative
88.56
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 4077 is above the 20-day moving average (MA) of 3957.40, above the 50-day MA of 3875.54, and above the 200-day MA of 3336.92, indicating a bullish trend. The MACD of 97.46 indicates Negative momentum. The RSI at 74.39 is Negative, neither overbought nor oversold. The STOCH value of 88.56 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥4.51T | 10.76 | 10.32% | 3.75% | 6.21% | 11.62% | |
72 Outperform | ¥347.86B | 7.29 | ― | 4.12% | 21.22% | -2.77% | |
72 Outperform | $1.78T | 10.97 | 8.92% | 3.32% | 3.42% | 22.06% | |
70 Outperform | ¥174.16B | 11.15 | ― | 3.24% | 7.36% | -3.80% | |
69 Neutral | €745.08B | 13.99 | 7.91% | 3.67% | 6.65% | -4.35% | |
68 Neutral | $591.42B | 8.76 | 9.13% | 3.04% | 20.96% | 22.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
JP:8591
ORIX
4,243.00
935.42
28.28%
JP:8572
ACOM Co
475.00
104.44
28.19%
JP:8253
Credit Saison Co
3,927.00
423.55
12.09%
JP:8593
Mitsubishi UFJ Lease & Finance Company
1,249.50
266.42
27.10%
JP:8425
Mizuho Leasing Company, Limited
1,370.00
407.72
42.37%
JP:8566
Ricoh Leasing Company,Ltd.
5,820.00
807.93
16.12%
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.