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Orix
(NYSE:IX)
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Rating:71Outperform
Price Target:
$43.00
▲(10.48% Upside)
Action:Reiterated
Date:09/11/26
The score is primarily supported by solid recent financial performance (notably improved 2026 growth and strong cash generation) and attractive valuation (low P/E with a moderate dividend). These positives are tempered by balance-sheet leverage and historical volatility in margins and cash conversion, plus mixed near-term technical momentum.
Positive Factors
Improving Revenue and Profitability
The acceleration in revenue and solid net margin indicate stronger operating performance across ORIX’s businesses. If sustained, this improved earnings base can support internal investment, strengthen resilience across market cycles, and provide a durable foundation for growth over the next several quarters.
Negative Factors
Meaningful Balance-Sheet Leverage
High and rising leverage remains a structural constraint for a diversified financial company because funding costs and capital requirements can materially affect profitability. It also reduces flexibility during weaker credit conditions and increases sensitivity to refinancing and balance-sheet stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Revenue and Profitability
The acceleration in revenue and solid net margin indicate stronger operating performance across ORIX’s businesses. If sustained, this improved earnings base can support internal investment, strengthen resilience across market cycles, and provide a durable foundation for growth over the next several quarters.
Read all positive factors
Orix (IX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.64B
Dividend Yield2.53%
Average Volume (3M)286.45K
Price to Earnings (P/E)10.6
Beta (1Y)0.84
Revenue Growth13.24%
EPS Growth65.45%
CountryUS
Employees37,286
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)558.50
Shares Outstanding1,124,106,600
10 Day Avg. Volume329,116
30 Day Avg. Volume286,450
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.18
Price to Sales (P/S)1.51
P/FCF Ratio143.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)4.97
Revenue Forecast (FY)$22.38B
Orix Business Overview & Revenue Model
Company Description
ORIX Corporation, a diversified global financial services firm, traces its origins to Tokyo, Japan, where it was founded in 1950. Originally established as Orient Leasing Co., Ltd., the company adopted its current name in 1989. Its operations exte...
How the Company Makes Money
ORIX makes money through a mix of recurring financial-services income and investment/asset-based earnings across its business segments. Key revenue streams typically include: (1) Leasing and rental: income from leasing equipment, vehicles, and oth...
Orix Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture: record FY26 net income, strong pretax profit growth, improved ROE (notably in the investment category), clear FY27 guidance upward and expanded shareholder returns. Management also announced organizational reforms and strengthened risk governance. Notable negatives include sizeable Q4 impairments at ORIX USA, non‑recurring gains that materially boosted FY26 results, U.S. credit/mortgage stress requiring reserves, and geopolitical/China risks affecting inbound and APAC exposure. Management recognizes these risks and has signaled active portfolio optimization and continued risk focus. On balance, the positive performance, clear guidance, and stronger capital return posture outweigh the material but manageable risks disclosed.Positive Updates
Record Net Income and ROE Improvement
Net income for FY ended March 2026 was JPY 447.3 billion, a year‑over‑year increase of JPY 95.6 billion (27%). ROE improved to 10.4%, up 1.6 percentage points from the prior year.
Negative Updates
Large Q4 Impairments at ORIX USA
Total impairment charges of JPY 97.2 billion in Q4 (primarily ORIX USA, including goodwill impairment at ORIX Capital Partners) reduced Q4 net income to JPY 57.6 billion (down from JPY 118.6 billion in Q3).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Net Income and ROE Improvement
Net income for FY ended March 2026 was JPY 447.3 billion, a year‑over‑year increase of JPY 95.6 billion (27%). ROE improved to 10.4%, up 1.6 percentage points from the prior year.
Read all positive updates
Company Guidance
ORIX guided to FY2027 net income of JPY 530.0 billion and an ROE target of 11.7% (FY2026 net income was JPY 447.3 billion and ROE 10.4%), with consolidated pretax profit guidance of JPY 760.0 billion (up JPY 68.6 billion, +10% YoY). By category FY27 pretax guidance is: Finance JPY 308.3 billion (up JPY 119.1 billion, +63%), Operation JPY 240.7 billion (up JPY 3.6 billion, +2%) and Investment JPY 290.0 billion (lower versus FY26 but would rise excluding the JPY 95 billion Greenko gain); Finance includes an expected pretax gain on sale of ORIX Bank of about JPY 124.2 billion. Shareholder returns: dividend payout ratio maintained at 39% (implied FY27 DPS JPY 187.36), FY26 DPS was JPY 156.1 (+30% YoY), a JPY 250 billion buyback program (up JPY 100 billion YoY) and a projected total return ratio of 85.9%; pro forma employed capital is expected to fall from 86% to about 80% after the ORIX Bank sale.Orix Financial Statement Overview
Summary
Income Statement
77
Positive
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.45T | 3.53T | 2.87T | 2.81T | 2.66T | 2.51T |
| Gross Profit | 1.22T | 1.13T | 1.20T | 1.17T | 1.04T | 940.79B |
| EBITDA | 1.28T | 1.37T | 944.66B | 916.36B | 813.04B | 743.78B |
| Net Income | 621.87B | 475.04B | 351.63B | 346.13B | 290.34B | 317.38B |
Balance Sheet | ||||||
| Total Assets | 18.26T | 18.08T | 16.87T | 16.32T | 15.29T | 14.26T |
| Cash, Cash Equivalents and Short-Term Investments | 968.92B | 1.46T | 3.81T | 1.03T | 1.24T | 959.02B |
| Total Debt | 6.31T | 6.57T | 6.28T | 6.46T | 6.01T | 5.16T |
| Total Liabilities | 13.41T | 13.44T | 12.69T | 12.30T | 11.67T | 10.90T |
| Stockholders Equity | 4.71T | 4.50T | 4.09T | 3.94T | 3.54T | 3.26T |
Cash Flow | ||||||
| Free Cash Flow | 1.38T | 37.13B | 1.20T | 1.17T | 777.66B | 990.65B |
| Operating Cash Flow | 1.46T | 1.37T | 1.27T | 1.25T | 881.23B | 1.03T |
| Investing Cash Flow | -1.18T | -1.11T | -1.31T | -1.36T | -1.14T | -784.99B |
| Financing Cash Flow | -170.22B | -160.53B | 146.27B | -100.99B | 480.70B | -330.47B |
Orix Technical Analysis
Neutral
38.92
Price Trends
39.66
Negative
38.16
Positive
34.44
Positive
Market Momentum
-0.05
Positive
47.27
Neutral
25.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IX, the sentiment is Neutral. The current price of 38.92 is below the 20-day moving average (MA) of 39.31, below the 50-day MA of 39.66, and above the 200-day MA of 34.44, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IX.
Orix Risk Analysis
Orix disclosed 27 risk factors in its most recent earnings report. Orix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orix Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.20B | 13.05 | 32.35% | ― | 2.58% | 32.02% | |
74 Outperform | $129.36B | 12.82 | 9.28% | 1.55% | 39.21% | -76.14% | |
74 Outperform | $12.72B | 9.83 | 9.42% | 2.85% | 1.97% | 174.08% | |
73 Outperform | $25.17B | 7.65 | 20.94% | 1.64% | -2.40% | 18.50% | |
71 Outperform | $40.64B | 10.61 | 13.63% | 2.53% | 13.24% | 65.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $7.20B | 9.32 | 23.07% | 6.77% | 6.93% | 19.96% |
* Financial Sector Average
IX
Orix
39.09
12.10
44.83%
COF
Capital One Financial
207.11
-13.81
-6.25%
CACC
Credit Acceptance
605.46
80.46
15.33%
ALLY
Ally Financial
42.17
1.25
3.06%
SYF
Synchrony Financial
75.44
0.68
0.90%
OMF
OneMain Holdings
62.06
4.56
7.92%
Orix Corporate Events
ORIX Details Progress of Large-Scale Share Repurchase Through August 2026
Sep 3, 2026
ORIX Corporation reported on September 3, 2026 the status of its ongoing share repurchase program authorized by its board on May 11, 2026 under Article 459, Paragraph 1 of the Companies Act and its Articles of Incorporation. During the period from...
ORIX Subsidiary Ubiteq Swings to Profit in FY 2026 With Limited Impact on Group Earnings
Aug 7, 2026
On August 7, 2026, ORIX Corporation reported that its consolidated subsidiary Ubiteq, Inc., listed on the Tokyo Stock Exchange Standard Market, recorded a notable turnaround in standalone performance for the fiscal year ended June 30, 2026, with n...
ORIX Posts Sharp Profit Surge as It Moves to Sell Banking Subsidiary
Aug 6, 2026
ORIX reported consolidated results for the quarter from April 1 to June 30, 2026, showing total revenues of ¥876.6 billion, up 17.4% year on year, and operating income of ¥133.9 billion, up 11.7%. Net income attributable to shareholders ...
ORIX Advances Large-Scale Share Buyback With ¥38.8 Billion July Purchases
Aug 5, 2026
ORIX Corporation, a diversified financial services and asset management group headquartered in Tokyo, operates globally across leasing-origin businesses, banking, insurance, real estate, infrastructure, environment and energy, and transportation a...
ORIX Steps Up Share Buybacks With ¥39.6 Billion Repurchased by June 30
Jul 6, 2026
ORIX Corporation reported on July 3, 2026 the status of its ongoing share repurchase program authorized by its Board on May 11, 2026, conducted under Article 459, Paragraph 1 of Japan’s Companies Act. During the period from June 1 to June 30...
ORIX Updates Corporate Governance and U.S. Filing, Highlights Human Capital Push
Jun 30, 2026
ORIX Corporation on June 30, 2026 filed a Form 6-K with the U.S. Securities and Exchange Commission, providing an English translation of its latest corporate governance report disclosed to the Tokyo Stock Exchange. The filing also records progress...
ORIX Wins Shareholder Backing for Charter Changes and New Directors at June AGM
Jun 25, 2026
ORIX Corporation, the Tokyo-listed and New York-listed financial services group, disclosed that it filed an extraordinary report with Japan’s Kanto Financial Bureau on June 25, 2026, detailing outcomes from its 63rd Annual General Meeting of...
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.