ORIX Corporation Fundamental Analysis (NYSE: IX)
ORIX Corporation Fundamental Analysis (NYSE: IX)
ORIX Corporation (NYSE: IX) shows strong financial fundamentals with a PE ratio of 5.73, profit margin of 33.18%, and ROE of 21.88%. The company generates $3146.9B in annual revenue with weak year-over-year growth of 2.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IX's fundamental strength across five key dimensions:
Efficiency Score
WeakIX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIX trades at attractive valuation levels.
Growth Score
WeakIX faces weak or negative growth trends.
Financial Health Score
WeakIX carries high financial risk with limited liquidity.
Profitability Score
ExcellentIX achieves industry-leading margins.
Key Financial Metrics
Is IX Expensive or Cheap?
P/E Ratio
IX trades at 5.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values ORIX Corporation at 1.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.61 times EBITDA. This is generally considered low.
How Well Does IX Make Money?
Net Profit Margin
For every $100 in sales, ORIX Corporation keeps $33.18 as profit after all expenses.
Operating Margin
Core operations generate 45.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.88 in profit for every $100 of shareholder equity.
ROA
ORIX Corporation generates $6.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ORIX Corporation generates strong operating cash flow of $1.47T, reflecting robust business health.
Free Cash Flow
ORIX Corporation generates strong free cash flow of $1.39T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1255.38 in free cash annually.
FCF Yield
IX converts 23.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How IX Stacks Against Its Sector Peers
| Metric | IX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.73 | 20.35 | Better (Cheaper) |
| ROE | 21.88% | 610.00% | Weak |
| Net Margin | 33.18% | 641.00% | Weak |
| Debt/Equity | 1.20 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.92 | 799.65 | Weak Liquidity |
| ROA | 6.62% | -77.00% (disorted) | Weak |
IX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ORIX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.71%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
29.65%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
45.01%
Industry Style: Value, Dividend, Cyclical
High Growth