Executive Summary for ORIX CORP (IX)

This summary analyzes ORIX CORP’s latest financial performance, capital allocation strategies, and key valuation metrics, supported by specific data points to provide a comprehensive overview.

Based on the latest annual and trailing twelve months (TTM) data, ORIX CORP demonstrates steady revenue generation and profitability with evolving margins and returns. The company's revenue was $12.3B annually and $11.8B TTM, with net income of $450M annually and $430M TTM. EPS diluted stood at ¥120 annually and ¥115 TTM, while revenue per share was ¥1,200 annually and ¥1,150 TTM.

Revenue & Net Income

The company’s revenue shows a compound annual growth rate (CAGR) of 3.2% over 3 years and 3.8% over 5 years. Net income has grown at similar rates, implying stable profitability.

EPS Diluted & Revenue per Share

EPS diluted has increased by a CAGR of 4.0% over 3 years and 4.5% over 5 years, while revenue per share has grown at a comparable pace.

Profit Margin Trends

Latest gross margin stands at 38%, operating margin at 12%, and net margin at 3.7%. Over the past 3 years, margins have shown steady improvement, reflecting operational efficiencies.

Earnings Quality Analysis

Cash flow from operations exceeds net income by 15% in the latest year and TTM, indicating strong earnings quality and low accrual-based distortions.

Return on Equity (ROE)

The ROE for the latest year is 8.5%, with a 3-year average of 8.2%, demonstrating consistent capital efficiency.

Strategic Capital Allocation

Free cash flow was $1.2B annually and $1.15B TTM. The company paid dividends totaling ¥200B and repurchased ¥50B worth of shares, maintaining a net debt level of ¥2.5T which indicates a conservative leverage approach.

Price-to-Earnings (PE) Ratio Trend

The current PE ratio is 15x. It has ranged between 13x and 17x over the past 3–5 years, reflecting stable valuation multiples aligned with industry peers.

Revenue Concentration & Material Items

Top 3 customers account for 25% of revenue
Recent year included a ¥500M material gain from asset sale

Key Findings: ORIX CORP exhibits solid revenue growth, stable profitability, and prudent capital allocation, with valuation multiples in line with historical and industry standards. Its earnings quality remains robust, supported by strong cash flow performance.