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Market Cap

JP¥2.2t

Last Updated

2021/04/11 08:10 UTC

Data Sources

Company Financials +

Executive Summary

ORIX Corporation provides diversified financial services in Japan, the Americas, Asia, Europe, Australasia, the Middle East, and internationally. More Details


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has ORIX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8591 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8591's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

8591

0.4%

JP Diversified Financial

-0.5%

JP Market


1 Year Return

42.4%

8591

35.3%

JP Diversified Financial

37.5%

JP Market

Return vs Industry: 8591 exceeded the JP Diversified Financial industry which returned 35.3% over the past year.

Return vs Market: 8591 exceeded the JP Market which returned 37.5% over the past year.


Shareholder returns

8591IndustryMarket
7 Day0.6%0.4%-0.5%
30 Day-1.8%-0.6%1.8%
90 Day1.3%2.2%5.2%
1 Year49.2%42.4%40.1%35.3%40.5%37.5%
3 Year12.6%-2.2%11.7%0.5%21.1%12.7%
5 Year38.1%12.0%40.8%19.6%59.5%41.9%

Long-Term Price Volatility Vs. Market

How volatile is ORIX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ORIX undervalued compared to its fair value and its price relative to the market?

25.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8591 (¥1821.5) is trading below our estimate of fair value (¥2456.68)

Significantly Below Fair Value: 8591 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8591 is good value based on its PE Ratio (11.3x) compared to the JP Diversified Financial industry average (14.1x).

PE vs Market: 8591 is good value based on its PE Ratio (11.3x) compared to the JP market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8591 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 8591 is good value based on its PB Ratio (0.8x) compared to the JP Diversified Financial industry average (1x).


Future Growth

How is ORIX forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8591's forecast earnings growth (13.8% per year) is above the savings rate (0%).

Earnings vs Market: 8591's earnings (13.8% per year) are forecast to grow slower than the JP market (16.5% per year).

High Growth Earnings: 8591's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8591's revenue (4.3% per year) is forecast to grow slower than the JP market (5.8% per year).

High Growth Revenue: 8591's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8591's Return on Equity is forecast to be low in 3 years time (9.9%).


Past Performance

How has ORIX performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8591 has high quality earnings.

Growing Profit Margin: 8591's current net profit margins (9%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: 8591's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: 8591's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8591 had negative earnings growth (-39.6%) over the past year, making it difficult to compare to the Diversified Financial industry average (-10.2%).


Return on Equity

High ROE: 8591's Return on Equity (6.8%) is considered low.


Financial Health

How is ORIX's financial position?


Financial Position Analysis

Short Term Liabilities: 8591's short term assets (¥6,273.2B) exceed its short term liabilities (¥1,018.3B).

Long Term Liabilities: 8591's short term assets (¥6,273.2B) do not cover its long term liabilities (¥9,304.0B).


Debt to Equity History and Analysis

Debt Level: 8591's debt to equity ratio (149.1%) is considered high.

Reducing Debt: 8591's debt to equity ratio has reduced from 176.6% to 149.1% over the past 5 years.

Debt Coverage: 8591's debt is well covered by operating cash flow (24.1%).

Interest Coverage: 8591's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is ORIX current dividend yield, its reliability and sustainability?

4.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8591's dividend (4.17%) is higher than the bottom 25% of dividend payers in the JP market (1.21%).

High Dividend: 8591's dividend (4.17%) is in the top 25% of dividend payers in the JP market (2.81%)


Stability and Growth of Payments

Stable Dividend: 8591's dividends per share have been stable in the past 10 years.

Growing Dividend: 8591's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), 8591's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Makoto Inoue (68 yo)

6.83yrs

Tenure

JP¥260,000,000

Compensation

Mr. Makoto Inoue has been the President at ORIX Corporation since January 1, 2011 and its Chief Executive Officer since June 24, 2014. Mr. Inoue has been Representative Executive Officer at ORIX Corporatio...


CEO Compensation Analysis

Compensation vs Market: Makoto's total compensation ($USD2.37M) is about average for companies of similar size in the JP market ($USD1.83M).

Compensation vs Earnings: Makoto's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 8591's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: 8591's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ORIX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ORIX Corporation
  • Ticker: 8591
  • Exchange: TSE
  • Founded: 1950
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: JP¥2.221t
  • Shares outstanding: 1.22b
  • Website: https://www.orix.co.jp

Number of Employees


Location

  • ORIX Corporation
  • World Trade Center Building
  • 2-4-1 Hamamatsu-cho
  • Tokyo
  • 105-6135
  • Japan

Listings


Biography

ORIX Corporation provides diversified financial services in Japan, the Americas, Asia, Europe, Australasia, the Middle East, and internationally. The company’s Corporate Financial Services segment offers l...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:10
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.