Orix Corp (NYSE: IX)

Sector: Financial Services Industry: Financial Conglomerates CIK: 0001070304
Market Cap 40.16 Bn
P/B 1.36
P/E 13.32
P/S 2.00
ROIC (Qtr) 566.32
Div Yield % 1.14
Rev 1y % (Qtr) 12.97
Total Debt (Qtr) 43.12 Bn
Debt/Equity (Qtr) 1.46
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About

ORIX Corp, known by its ticker symbol IX, is a global financial services company based in Japan. The company is deeply ingrained in the financial services sector, offering an array of services such as leasing, financing, and investment products. The company's main business activities are anchored in providing financial solutions to a diverse range of industries. These activities include aircraft leasing, real estate leasing, and equipment leasing, among others. ORIX's operations span various regions, with a focus on the Asia-Pacific and European...

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Investment thesis

Bull case

  • Strong tangible asset base of 116.41B provides 2.70x coverage of total debt 43.12B, indicating robust asset backing and low credit risk.
  • Cash position of 9.12B provides exceptional 243.87x coverage of minority interest expenses 37.41M, indicating strong liquidity.
  • Retained earnings of 22.95B represent substantial 0.78x of equity 29.45B, indicating strong internal capital generation.
  • Cash reserves of 9.12B exceed inventory value of 1.67B by 5.46x, indicating strong liquidity and inventory management.
  • Cash position of 9.12B fully covers payables of 2.14B by 4.26x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 1.22B, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 0 barely covers operating expenses of 322.06M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Tax assets of 0 provide limited offset against tax liabilities of 4.62B, which is 0x, indicating potential future cash flow pressure from tax obligations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 4.45B, indicating potential underinvestment in innovation relative to administrative overhead.
  • Operating cash flow of 0 shows concerning coverage of minority interest expenses of 37.41M, which is 0x, suggesting complex corporate structure risks.

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Financial Conglomerates
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IX Orix Corp 40.16 Bn 13.32 2.00 43.12 Bn
2 VOYA Voya Financial, Inc. 18.63 Bn 31.13 2.13 3.21 Bn
3 FRHC Freedom Holding Corp. 6.65 Bn 2,496.76 3.24 2.17 Bn
4 HTH Hilltop Holdings Inc. 3.22 Bn 7.52 1.58 0.96 Bn
5 TREE LendingTree, Inc. 0.52 Bn 36.42 0.49 0.44 Bn
6 RILY BRC Group Holdings, Inc. 0.20 Bn 0.94 0.23 1.51 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 0.57
EV to Cash from Ops. EV/CFO 1.92 1.32
EV to Debt EV to Debt 0.39 3.11
EV to EBIT EV/EBIT 3.07 11.84
EV to EBITDA EV/EBITDA 2.69 5.50
EV to Free Cash Flow [EV/FCF] EV/FCF 7.90 2.85
EV to Market Cap EV to Market Cap 0.42 2.45
EV to Revenue EV/Rev 0.83 2.03
Price to Book Value [P/B] P/B 1.36 1.99
Price to Earnings [P/E] P/E 13.32 431.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 5.44
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 9.60
Dividend per Basic Share Div per Share (Qtr) 0.40 0.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 32.70
Interest Coverage Int. cover (Qtr) 4.48 2.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 1,831.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 14.13 17.12
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.11
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 15.65 65.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 21.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.80 85.57
EBT Growth (1y) % EBT 1y % (Qtr) 20.49 41.73
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 51.48
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 20.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.89 10.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.37
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio 0.00 0.06
Current Ratio Current Ratio 0.00 0.24
Debt to Equity Ratio Debt/Equity (Qtr) 1.46 0.28
Interest Cover Ratio Int Coverage (Qtr) 4.48 2.27
Times Interest Earned Times Interest Earned (Qtr) 4.48 2.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 18.20
EBIT Margin % EBIT Margin % (Qtr) 4,220.80 719.79
EBT Margin % EBT Margin % (Qtr) 21.06 12.61
Gross Margin % Gross Margin % (Qtr) 43.10 73.67
Net Profit Margin % Net Margin % (Qtr) 15.00 10.10