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Orix
(NYSE:IX)
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Rating:74Outperform
Price Target:
$44.00
▲(9.15% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by solid financial performance (strong recent growth, profitability, and cash generation) tempered by elevated leverage and historical volatility in margins/cash conversion. Technicals add support via a clear uptrend and healthy momentum, while valuation is reasonable with a mid-teens P/E and a moderate dividend yield.
Positive Factors
Diversified business model
ORIX's wide-ranging business mix—spanning financing, leasing, asset management, insurance and real assets—creates multiple recurring revenue streams and cross-selling opportunities. This structural diversity reduces concentration risk and supports resilient cash flows and capital deployment over the medium term.
Negative Factors
Elevated leverage
Meaningful leverage magnifies sensitivity to funding conditions and interest-rate moves, constraining ORIX's flexibility to pursue opportunistic investments or absorb shocks. Even with rising equity, high gross debt levels raise refinancing and liquidity considerations that persist beyond short-term market swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
ORIX's wide-ranging business mix—spanning financing, leasing, asset management, insurance and real assets—creates multiple recurring revenue streams and cross-selling opportunities. This structural diversity reduces concentration risk and supports resilient cash flows and capital deployment over the medium term.
Read all positive factors
Orix (IX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.72B
Dividend Yield2.46%
Average Volume (3M)233.76K
Price to Earnings (P/E)11.3
Beta (1Y)0.85
Revenue Growth13.24%
EPS Growth65.45%
CountryUS
Employees37,286
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)559.07
Shares Outstanding1,124,106,600
10 Day Avg. Volume192,530
30 Day Avg. Volume233,763
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)4.59
Revenue Forecast (FY)$23.30B
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
Positive
40.31
Price Trends
39.53
Positive
36.61
Positive
33.18
Positive
Market Momentum
0.26
Positive
51.66
Neutral
32.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IX, the sentiment is Positive. The current price of 40.31 is above the 20-day moving average (MA) of 40.13, above the 50-day MA of 39.53, and above the 200-day MA of 33.18, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $41.72B | 11.35 | 13.63% | 2.45% | 13.24% | 65.45% | |
73 Outperform | $26.36B | 8.22 | 20.94% | 1.65% | -2.40% | 18.50% | |
72 Outperform | $9.31B | 24.46 | 17.07% | 0.86% | 21.61% | 34.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.56B | 9.86 | 23.07% | 7.01% | 6.93% | 19.96% | |
59 Neutral | $13.66B | 10.47 | 9.42% | 2.80% | 1.97% | 174.08% | |
57 Neutral | $2.32B | 5.96 | 42.65% | 11.44% | -1.65% | -53.21% |
* Financial Sector Average
IX
Orix
40.16
14.13
54.28%
FCFS
FirstCash
214.75
77.51
56.48%
WU
Western Union
7.45
-0.13
-1.66%
ALLY
Ally Financial
44.91
7.59
20.34%
SYF
Synchrony Financial
81.00
10.39
14.71%
OMF
OneMain Holdings
65.68
11.52
21.27%
Orix Corporate Events
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...
ORIX Launches ¥250 Billion Share Buyback, Repurchases 1.7 Million Shares in May
Jun 3, 2026
ORIX Corporation reported on June 3, 2026, that it has repurchased 1,693,600 of its common shares for a total of about ¥10.57 billion between May 22 and May 31, 2026, through market purchases executed under a discretionary dealing contract. T...
ORIX Sets Agenda for 63rd AGM, Proposes Virtual-Only Meetings and Board Election
May 26, 2026
ORIX Corporation has issued materials for its 63rd Annual General Meeting of Shareholders, scheduled following the close of its fiscal year ended March 31, 2026, covering business performance from April 1, 2025 to March 31, 2026. The documentation...
ORIX Flags ¥70 Billion Profit Uplift From Toshiba-Linked Gains, Files Extraordinary Report
May 21, 2026
ORIX Corporation said on May 21, 2026 that Toshiba Corporation’s full-year results for the year ended March 31, 2026 will significantly lift ORIX’s first-quarter earnings for the fiscal year ending March 31, 2027, via its equity-method...
ORIX Flags Earnings Impact from Toshiba’s Kioxia-Driven Profit Boost
May 15, 2026
On May 15, 2026, ORIX Corporation said Toshiba’s full-year results for the period ended March 31, 2026, will affect ORIX’s consolidated earnings for the first quarter of the fiscal year ending March 31, 2027. Toshiba booked ¥2,277...
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.