Fact based stock research
Orix (TSE:8591)

JP3200450009

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Orix stock research in summary

orix.co.jp

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Orix (Other Financial Services, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Orix are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives), show above-average growth (Growth Rank of 59) but are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Orix's financial characteristics. As the company Orix's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 80) and above-average growth (Obermatt Growth Rank of 59), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 33) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	80
Growth Rank	59
Safety Rank	33
Combined Rank	65

Country	Japan
Industry	Other Financial Services
Index	TOPIX 100
Size class	XX-Large

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Orix

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	97	69	80	80
GROWTH
GROWTH	35	69	65	59
SAFETY
SAFETY	3	40	27	33
SENTIMENT
SENTIMENT	n/a	16	67	^new
360° VIEW
360° VIEW	n/a	45	78	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Orix is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	97	69	80	80
GROWTH
GROWTH	35	69	65	59
SAFETY
SAFETY	3	40	27	33
COMBINED
COMBINED	47	73	69	65

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Orix the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 80 (better than 80% compared with alternatives) for 2024, Orix shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Orix. Price-to-Sales is 75 which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value for Orix's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 82% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 69. Compared with other companies in the same industry, dividend yields of Orix are expected to be higher than for 64% of all competitors (a Dividend Yield rank of 64). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 80, is a buy recommendation based on Orix's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Orix based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	94	76	74	75
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	49	82	82
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	80	69	73	69
DIVIDEND YIELD
DIVIDEND YIELD	84	65	64	64
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	97	69	80	80

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Orix; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Orix shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Orix. Sales Growth has a rank of 64 which means that currently, professionals expect the company to grow more than 64% of its competitors. Both Profit Growth, with a rank of 69, and Stock Returns, with a rank of 67, are also above average. But Capital Growth only has a rank of 30, which means that, currently, professionals expect the company to grow its invested capital less than 70% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	25	64	64
PROFIT GROWTH
PROFIT GROWTH	29	75	64	69
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	25	30
STOCK RETURNS
STOCK RETURNS	84	91	77	67
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35	69	65	59

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Orix.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company Orix has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Orix is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Orix.Leverage is at 51, meaning the company has a below-average debt-to-equity ratio. It has less debt than 51% of its competitors.Refinancing is at a rank of 55, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Liquidity is at 33, meaning that the company generates less profit to service its debt than 67% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), Orix has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Orix more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	20	51	53	51
REFINANCING
REFINANCING	1	57	55	55
LIQUIDITY
LIQUIDITY	35	34	30	33
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	3	40	27	33

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Orix and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	60	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	39	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	18	94	^new
MARKET PULSE
MARKET PULSE	n/a	20	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	16	67	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Orix.
Upgrade to a Premium Account to access the latest ranks.