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FRESH Analysis Report
Aug 22, 2026
1 day ago · 100% complete
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Orix Corporation (IX) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score -7 (−100…+100 Quality+Value blend) · Quality 40 · Value -46 · Sentiment -10 (timing only, not weighted) · Composite fair value $22.26 vs $38.49 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Orix Corporation

IX NYSE
Financial Services · Financial Conglomerates
Minato, 105-5135, Japan orix.co.jp Updated Aug 22, 3:17pm
Price
$38.49
Market Cap
$41.8B
Employees
37,286
Beta
0.72
Avg Volume
239,580
Last Dividend
$156.10
CEO
Mr. Makoto Inoue

Orix Corporation Sponsored ADR represents the American Depositary Receipts of Orix Corporation, a diversified financial services company based in Japan. The primary function of these ADRs is to provide US investors with a convenient way to invest in Orix Corporation without having to directly purchase shares through a foreign exchange. Orix Corporation itself is known for its wide-ranging operations across numerous sectors including leasing, real estate, insurance, banking, and retail financial services. The company is also involved in venture capital, asset management, and both renewable and conventional energy projects. Orix's extensive services influence various industries and contribute significantly to the global financial market landscape. The ADRs offer investors exposure to the conglomerate's broad business portfolio, which is integral to its strategy of achieving sustained growth and stability in both domestic and international markets. Listed on the New York Stock Exchange, Orix Corporation Sponsored ADR enables investors to participate in the company's financial performance within a regulatory framework familiar to US market participants.

Runs with full report Generated: Aug 22, 2026 3:27pm
Price Overview
Price at report time
$38.50
as of Aug 21, 6:05pm (2d ago)
Change · Aug 21
+0.96 (+2.56%)
Day Range
$38.43 – $38.69
52-Week Range
$24.19 – $42.39
50-Day MA
$39.52
200-Day MA
$33.53
Volume
9,464.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 2d).
Share Structure
Outstanding 1,092,232,679.00
Float 1,082,135,520.00
Free Float 99.1%
High free float — 99.1% of shares trade freely, ~0.9% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 22, 2026 3:35pm (1d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 22, 2026 3:17pm (1d ago)
Why there are no quarterly figures for Orix Corporation

This company does not file structured financial statements with the U.S. SEC, so quarterly figures aren't available from our filings-based data engine. Annual figures shown here come from the sources that do cover it.

Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 22, 2026 3:26pm
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
15.33
Stock Price: $38.49
EPS (Diluted): 2.51
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
1.48
Stock Price: $38.49
Total Equity: $29.07B
Shares: 1,119,842,263
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
Market Cap: $41.81B
Total Debt: $41.10B
Cash: $8.39B
EBITDA: N/A
EBITDA not available
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$75.7B
Market Cap: $41.81B
Total Debt: $41.10B
Cash: $8.39B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $20.95B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
13.7%
Operating Income: $2.87B
Revenue: $20.95B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
13.4%
Net Income: $2.81B
Revenue: $20.95B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
9.7%
Net Income: $2.81B
Total Equity: $29.07B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
3.1%
Operating Income: $2.87B
Tax Rate: 33.7%
Equity: $29.07B
Total Debt: $41.10B
Cash: $8.39B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
Current Assets: N/A
Current Liabilities: N/A
Missing from API: Current Assets, Current Liabilities
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
1.41
Short-Term Debt: $3.60B
Long-Term Debt: $37.50B
Total Debt: $41.10B
Total Equity: $29.07B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$18.71
Revenue: $20.95B
Shares: 1,119,842,263
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$25.96
Total Equity: $29.07B
Shares: 1,119,842,263
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$7.69
Operating CF: $8.61B
CapEx: $0.00
Shares: 1,119,842,263
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
405.5%
Last Dividend: $156.10
Stock Price: $38.49
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
38.2%
Dividends Paid: -$1.07B
Net Income: $2.81B
Industry Benchmarks
Last run: Aug 22, 2026 3:24pm
Compares IX against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 22, 2026 3:17pm (1d ago)
Metric 2022 2023 2024 2025 2026
Revenue $15.9B $16.8B $17.7B $18.1B $21.0B
Cost of Revenue
Gross Profit
Operating Expenses $7.5B $7.9B $8.9B $9.0B $10.1B
Operating Income $1.9B $2.0B $2.3B $2.1B $2.9B
Net Income $2.0B $1.7B $2.2B $2.2B $2.8B
EBITDA
EPS $8.29 $7.74 $9.39 $1.94 $2.52
EPS (Diluted) $8.28 $7.73 $9.37 $1.93 $2.51
Balance Sheet (Annual)
Last updated: Aug 15, 2026 9:15am (8d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $6.0B $7.7B $6.5B $7.6B $8.4B
Total Current Assets
Total Assets $89.7B $96.0B $102.6B $106.0B $113.2B
Current Liabilities
Long-Term Debt $27.8B $32.8B $35.4B $36.0B $37.5B
Total Liabilities $68.5B $74.4B $77.3B $79.8B $84.1B
Total Equity $21.2B $21.6B $25.3B $26.2B $29.1B
Retained Earnings $18.3B $19.1B $20.5B $21.1B $22.0B
Cash Flow (Annual)
Last updated: Aug 15, 2026 9:15am (8d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $6.9B $5.7B $7.8B $8.2B $8.6B
Capital Expenditure
Free Cash Flow
Acquisitions (net) -$550.6M -$1.3B -$267.1M -$565.0M -$811.2M
Net Debt Issued / (Repaid) $13.9B $18.9B $15.1B $17.7B $15.6B
Dividends Paid -$624.8M -$668.2M -$628.0M -$852.4M -$1.1B
Stock Buybacks -$314.3M -$327.3M -$314.3M -$336.4M -$943.0M
Net Change in Cash $76.9M $1.7B -$1.1B $859.2M $811.7M
Growth Trends (YoY %)
Last updated: Aug 22, 2026 3:17pm (1d ago)
Metric 2023 2024 2025 2026
Revenue Growth +5.8% +5.6% +2.1% +15.9%
Gross Profit Growth
Operating Income Growth +3.9% +14.9% -8.0% +37.5%
Net Income Growth -12.5% +26.8% +1.6% +27.2%
EBITDA Growth
Dividend History (Last 20)
Last updated: Aug 22, 2026 3:17pm (1d ago)
Date Dividend Declaration Record Payment
2025-03-31 $0.40
2024-09-30 $0.08
2024-03-27 $0.07
2008-03-27 $0.25
2007-03-28 $0.11
2005-03-29 $0.04
2004-03-29 $0.02
2003-03-27 $0.02
2002-03-26 $0.01
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 14 computed · 6 not applicable · 4 not yet run
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for IX — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-22 15:45

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Growing A diversified Japanese financial conglomerate compounding at high-single-digit revenue and low-teens earnings rates, currently running above its category on rate normalization, insurance and asset-monetization tailwinds — durable enough to call Growing near-term, but structurally a mid-single-digit compounder once lumpy gains normalize. conf 6/10
Share gain Category growing · Financial Conglomerates is in a steady phase with ~6-7% category growth (industry 3y CAGR 6.0%, category median recent 7.1%). ORIX's recent 15.9% revenue YoY sits roughly 9pp above that, and its 8.8% multi-year revenue CAGR is still above category trend.
Next 2 quarters
Growing
Spread income improvement and asset-management/insurance contribution should carry the next two prints, but quarterly results will remain lumpy because realization timing and FX swing the number. Expect positive YoY at the group level with wide dispersion by segment.
↑ above expectations
Year 1
Growing
Full-year direction is supported by rate normalization on the investment portfolio, continued monetization of real-asset and PE positions, and a shrinking share count amplifying per-share results. The category is growing steadily, so ORIX does not need to fight a shrinking pool.
≈ inline with expectations
Years 2–3
Holding
Once realization gains normalize and the rate step-up is annualized, the mix reasserts itself: mature domestic leasing, banking and retail finance growing at roughly nominal Japanese GDP, offset by faster asset management, renewables and concessions. That is a mid-single-digit compounder — real growth, but the rate of growth decays from today's 15.9%. Structural erosion is not the risk; deceleration to trend is.
— expectations unclear
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
53 Japanese rate normalization lifts spread and investment income — ORIX's life insurance, banking and domestic leasing books have spent a decade earning near-zero reinvestment yields. As JGB and domestic loan yields reset upward, new-money yields on the insurance/investment portfolio and lease spreads widen mechanically over multiple years — a slow but high-certainty tailwind that does not require volume growth.
46 Share gain versus a steady category — Recent revenue YoY of 15.9% against industry ~6.8% and category median 7.1% is a +9pp gap. This is not tide-riding: the gap comes from segments (asset management, PE/concessions, aircraft and equipment leasing, renewables) where ORIX has been adding capital while many peers de-risked.
42 Capital-recycling engine plus per-share arithmetic — The model is buy-operate-monetize: gains on sale of real estate, PE stakes and concession assets recur structurally, and management has been returning capital and shrinking the share count. Even flat operating earnings translate into rising per-share earnings, which supports the earnings CAGR of 13.7% versus revenue CAGR of 8.8%.
30 Multi-year consistency of the top line — Avg annual growth ~9.0% with 6.9% volatility and every year positive — for a conglomerate with lumpy segments, that is evidence of genuine diversification rather than one lucky engine. Layer-1 outlook is a tailwind and momentum reads strong positive.
Growth risks
58 Earnings quality depends on asset-sale gains — A meaningful share of the 27.2% recent earnings YoY is realization-driven (property, PE and investment exits). Realizations are discretionary and mean-reverting; a slower exit window compresses reported growth quickly without any deterioration in the underlying franchise. This is the single biggest reason not to call Accelerating.
38 Rate/credit exposure in real estate and US private credit — With the 10y at 4.69% and a macro-headwind backdrop, ORIX's US corporate credit, CRE and real-asset marks are the vulnerable line. Higher-for-longer pressures exit valuations and can force provisioning in ORIX USA even while Japanese spread income improves.
27 FX translation noise in ADR-level results — Reported growth for a JPY-earning conglomerate translated to USD is materially FX-dependent; yen moves can swing headline ADR revenue and EPS in either direction independent of business direction. It makes both the trajectory and the estimate comparisons less clean than they appear.
35 Conglomerate drag caps structural growth — No single segment is large and fast enough to lift the whole; mature domestic leasing and banking grow at roughly nominal GDP. Over 2-3 years the mix pulls the group toward mid-single-digit organic growth regardless of individual wins.
23 Very thin, noisy analyst modeling — The estimate record shows swings of +267%, +150%, +111% and then a -0.61 actual versus -0.53 estimate. That pattern signals poor coverage and quarterly volatility rather than repeatable outperformance — it degrades confidence in any variant call against consensus.
Two world-level forces dominate. First, the end of Japanese zero rates: for a domestic insurer/lessor/bank hybrid, rising reinvestment yields are a durable margin tailwind that took a decade to arrive and will take years to fully flow through — this is the structural case. Second, higher global long rates (10y 4.69%) with a mildly positive curve cut the other way on ORIX's asset-monetization and US credit/real-asset side, slowing exits and pressuring marks. Net: the Japanese domestic engine improves while the global capital-recycling engine faces friction, which is exactly why growth should stay positive but not accelerate. Renewables and infrastructure concessions add a real, if slow-burning, capex-backed growth vector.
Growth position composite +2
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
50Years 2–3 · Holding
+2Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-22 15:34:50
Verdict Fairly valued near $38-40 — synthesis DCF is the wrong tool for a diversified financial conglomerate; hold for the 4% yield with modest upside, not a -39% overvaluation call.

The synthesis verdict — "overvalued, fair value $22-23 vs $38.49" — deserves immediate pushback. That composite is anchoring on a DCF for a diversified financial conglomerate whose value is genuinely sum-of-parts (leasing book, insurance float, real estate marks, PE fund stakes, renewables). DCF-ing Orix is roughly as informative as DCF-ing Berkshire; you get a false-precision number that ignores balance sheet optionality. The market-forces "neutral" and narrative "quiet-quality anchored" reads are closer to reality. At 15.3x earnings, 1.48x book, 9.7% ROE, and a 4% yield with 38% payout, Orix is priced like a mid-tier global financial — not obviously cheap, not obviously rich. The synthesis's -39% gap is almost certainly a model artifact.

The trajectory is better than "mature earner" suggests. Revenue $15.85B → $20.95B over four years is a 7.2% CAGR, and the FY26 print of $20.95B rev / $2.81B NI represents 15.9% YoY revenue growth and 27% earnings growth — well above the 5-year averages. Operating margin expanded from 12.0% (FY22) to 13.7% (FY26). Net margin sits at 13.4%. ROE at 9.7% is unspectacular but improving, and 1.48x book with a 9.7% ROE implies the market is pricing roughly cost-of-equity returns — reasonable, not exuberant. The debt/equity of 1.41x looks scary in isolation but is low for a financial conglomerate with a leasing/insurance/banking mix; peers routinely run 3-5x. Operating CF of $8.61B against a $41.8B market cap is a 20% OCF yield, which is the number that actually matters for a capital-recycling conglomerate.

The contrarian case against my own read: (1) FY26 growth may be JPY-weakness-flattered — a weak yen inflates USD-reported revenue, and BOJ normalization would reverse this both mechanically and by compressing net interest margins on the leasing/banking book. (2) ROIC of 3.1% is genuinely poor and signals that capital allocation across the conglomerate sprawl isn't creating much economic value — the earnings growth may be balance-sheet expansion rather than return improvement. (3) The insider "buying" is ten J-Other filings on a single day (2026-06-23) — this looks like a scheduled corporate/ADR mechanical filing, not conviction insider accumulation. The secondary signal is misleading. (4) Japanese financials have chronically failed to close valuation gaps for two decades; "quietly compounding" often means quietly stagnating in USD terms.

Where I land: the synthesis is directionally wrong. Fair value is not $22 — that would imply 8.7x earnings and 0.85x book for a company growing earnings 13.7% CAGR with an improving margin profile and 4% yield. A more defensible fair value band is $35-45, anchored on 1.3-1.7x book and 14-17x earnings, which brackets the current $38.49. The stock is roughly fairly valued, with modest upside if BOJ normalization proves benign (rising rates help the leasing/insurance book more than they hurt) and downside if yen strength reverses the reported growth or if credit cycle turns. I dissent from the "overvalued -39%" call but I'm not a table-pounding bull either — this is a hold/starter-yield position, not a mispricing. Conviction on the dissent is moderate-high because the composite fair value is clearly using the wrong tool for a conglomerate; conviction on direction is moderate because JPY translation and BOJ risk are real unknowns.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-22 15:35:04
Verdict Fairly attractive at $38.49 — not a bargain-basement deep value, but the earnings growth, 4% yield, and near-10% ROE support value around $42-$46 rather than $23.

The raw numbers look better than the “overvalued” label suggests. Orix has grown revenue from $15.85B in FY2022 to $20.95B in FY2026, an 8.8% CAGR, while net income rose from $1.96B to $2.81B despite a dip in FY2023. The latest year was especially strong: revenue up 15.9% and net income up 27.2% year over year, with operating income climbing from $2.09B to $2.87B. That is not the profile of a no-growth financial utility. At $41.81B market cap, the stock trades at about 14.9x FY2026 earnings and 1.48x book on a 9.7% ROE. For a diversified financial with visible earnings power, a 4.05% dividend yield, and a 38% payout ratio, that multiple is not obviously stretched. If anything, the market is paying a reasonable price for a business that has resumed compounding after a soft patch.

What stands out is the balance between profitability and leverage. On the good side, net margin of 13.4% and operating margin of 13.7% are healthy for a conglomerated financial platform, and operating cash flow of $8.61B versus $2.81B of net income suggests earnings are backed by substantial cash generation. On the cautionary side, the capital structure is meaningful: $41.10B of debt against $29.07B of equity, or 1.41x debt-to-equity, with only $8.39B of cash. That leverage is not unusual for this type of institution, but it means you should not value Orix on a simple industrial-style DCF and call it a day. The very low 3.1% ROIC is a warning that much of the asset base is inherently low-spread, balance-sheet-intensive business. Still, the more relevant metric here is ROE, and a near-10% ROE combined with sub-40% payout leaves room for continued dividends and buybacks without heroic assumptions.

The biggest mismatch in the prior work is the idea that $38.49 implies an excessive growth premium. The stock is not priced like a growth darling: 2.06x sales and 15.3x earnings for a diversified financial with improving earnings, a solid yield, and book value support is closer to “fair-to-modestly-cheap” than “39% overvalued.” If this were a 6%-7% ROE lender with flat earnings, I would agree that 1.5x book is too rich. But with earnings CAGR of 13.7% over the period and a strong latest-year step-up in profit, the market is not being irrational in paying above book. The classification as a mature earner is right; the conclusion that maturity equals overvaluation is not. My read is that the stock is being valued as a decent-quality compounder in an unloved category, not as a speculative rerating story.

The best bear case is straightforward: Orix is still a leveraged financial conglomerate whose complexity can hide mediocre underlying returns. A 9.7% ROE is good, not great, and 1.48x book can become expensive quickly if credit costs rise, real estate values soften, or BOJ normalization pressures funding economics. The 15x P/E also loses appeal if the FY2026 earnings jump proves cyclical rather than durable. The low ROA of 2.5% and ROIC of 3.1% support the argument that this is a spread business vulnerable to macro headwinds, and the debt load means small operating disappointments can matter. I take that seriously, but I weigh it differently because the valuation already embeds “mature, levered, Japanese financial” skepticism; it does not assume 15%-plus growth persists for years. The dividend yield north of 4% and payout ratio below 40% give investors paid patience while management proves whether the recent acceleration is real.

What would change my mind is not another abstract sum-of-parts argument but evidence in the next year that FY2026 was a peak. If net income slips back toward the FY2024-FY2025 range of $2.18B-$2.21B, or ROE falls materially below 9%, then 1.5x book would look too generous and I would move bearish quickly. Likewise, if operating cash flow weakens sharply from $8.61B while leverage stays elevated, the quality case breaks. Conversely, if Orix can sustain net income above $2.8B, keep payout discipline, and show book value compounding without a hit to credit quality, I would be comfortable underwriting a value in the low-to-mid $40s rather than the low $20s implied by the bearish model.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-22 15:35:49
Verdict Fairly valued to modestly undervalued at $38.49; 15x PE + 4% yield on accelerating mid-teens earnings growth is reasonable, DCF $22 is too harsh

The raw numbers describe a financial conglomerate that is quietly accelerating, not stagnating. Revenue climbed from $15.85B in FY2022 to $20.95B in FY2026, an 8.8% CAGR that stepped up sharply in the latest year (+15.9% YoY). Net income followed a steeper path—from $1.96B to $2.81B, a 13.7% CAGR with a 27% jump in the most recent period—while operating income hit $2.87B and net margin held at 13.4%. Operating cash flow of $8.61B dwarfs reported earnings, underscoring genuine cash conversion rather than accounting noise. At $38.49 and a $41.8B market cap the stock screens at 15.3x earnings, 1.48x book and a 4.05% dividend yield on a 38% payout; those multiples are ordinary for mid-teens earnings growth and a sub-10% ROE, not a frothy premium. Debt of $41.1B against $29.1B equity and only $8.4B cash keeps leverage elevated (D/E 1.41), and the 3.1% ROIC is the clearest quantitative red flag—capital is being deployed at thin incremental returns. Still, the growth inflection and cash generation contradict any narrative of a pure yield-trap Japanese mature earner; the market is paying a fair price for improving earnings power, not an excessive one.

The valuation synthesis that pins fair value near $22–23 and labels the name 39% overvalued collides with the income statement and cash-flow statement. A 15x multiple on $2.81B of net income already reconciles to the current capitalization; applying a deeper discount implies the model is either capitalizing a much lower terminal growth rate or treating the balance-sheet leverage as pure equity risk rather than the normal funding structure of a leasing-and-finance conglomerate. The 65% “premium to DCF” cited in the bear narrative therefore looks more like model misspecification than market exuberance. Narrative intensity is minimal and the cult coefficient is low, so there is little story premium to deflate. Secondary signals—net insider buying, good revenue confidence, and an 8–14% multi-year growth tape—further undercut the overvalued call.

The strongest counter-argument is straightforward and quantitative. ROIC at 3.1% and ROA at 2.5% show that the firm is not creating economic profit on the capital it deploys; a smart opponent will argue that 15x earnings is already generous for a low-return, leveraged Japanese conglomerate facing BOJ normalization and macro headwinds. Debt roughly equal to market cap leaves little equity cushion if asset quality or interest coverage deteriorates, and the stock sits below sector benchmarks. If the recent 16% revenue and 27% earnings spikes prove one-off rather than a new run-rate, the multiple has nowhere to expand and the 4% yield becomes the sole support. Those points are real; they simply do not justify collapsing intrinsic value to the low-$20s when cash earnings and the dividend are both rising.

I would reverse to a clear overvalued stance if FY2027 revenue growth falls back below 5% and net income stalls under $2.5B, or if ROIC remains stuck near 3% while net debt rises. Conversely, sustained double-digit earnings growth with ROE pushing through 12% and any visible deleveraging would push me to a higher-conviction undervalued call above $45.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 7.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -2.0 vs panel · self: 5.0
GPT gpt-5.4 8.0
undervalued · conviction 3/5 · Δ +1.0 vs panel · self: 6.0
Grok grok-4.5 8.0
undervalued · conviction 3/5 · Δ +1.0 vs panel · self: 6.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-22 15:47:55
Delvantic - Cairn AI
Pass at $38.50 — revisit low-$30s 6/10
Orix is a solid, boring Japanese financial compounder priced full-to-fair at $38.50 — no edge to buy here, no reason to short.
The cruxWhether you trust the EPV-floor -39% downside signal or the panel's view that 15x PE and 4% yield on a diversified financial is simply fair value — I lean toward the latter, which makes this a price-discipline call, not a quality call.
Forensic checks Derived mechanically from IX's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionHeavy Dilution
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+40
Solid
edge √Σ 101 · risk √Σ 59 · conf 6/10

Orix is a mature, diversified financial services group compounding revenue from $15.85B (2022) to $20.95B (2026), with operating margin steady in the 11-14% band and net income rising from $1.96B to $2.81B. Free cash flow is robust and consistent at $5.7B-$8.6B annually, and OCF/NI at 3.44x plus negative accruals (-5.2% of assets) point to high earnings quality — reported profits are backed by cash, atypical of a firm cooking books. The two flags are structural to financials, not necessarily forensic. Altman Z of 0.84 flags 'distress' but the Z-score is notoriously unreliable for financial conglomerates (leasing, banking, insurance, PE) whose business model IS leverage; net debt of -$32.7B against $8.4B liquid cash and $8.6B FCF is normal for this model. The 'diluted share CAGR 46.8%' driven by a jump from 232M to 1.14B between 2025 and 2026 almost certainly reflects a stock split (Orix executed a 1-for-5 or similar split in that window) rather than genuine dilution — per-share economics are not being destroyed at that rate given net income also rose. Insider activity is directionally positive but trivial in size ($905 total); the mass J-Other grants on 2026-06-23 look like routine board compensation awards. Overall a durable, cash-generative, well-run diversified financier.

Strengths 4
m70
Consistent FCF generation
FCF of $6.94B, $5.74B, $7.82B, $8.17B, $8.61B across five years — highly stable cash conversion with OCF/NI of 3.44x.
m55
Steady top and bottom line growth
Revenue up 32% cumulatively ($15.85B to $20.95B); net income up 43% ($1.96B to $2.81B); op margin stable 11.5-13.7%.
m45
Clean accrual profile
Accruals -5.2% of assets and OCF materially above NI suggest conservative, cash-backed earnings — unusual for a firm this diversified.
m15
Directors buying with own money
Three small P-Purchase transactions in May 2026 totaling $905 — token size but directionally positive alignment signal.
Concerns 3
m40
Share count jump needs verification
Diluted shares moved from 232M (2025) to 1.14B (2026) — a ~5x jump most consistent with a stock split rather than 46.8% CAGR true dilution, but needs filing confirmation.
m35
Altman Z 0.84 nominal distress
Score sits in the classic distress band, but Z-score is unreliable for financial conglomerates whose business model requires leverage; net debt $32.7B is structural, not stress.
m25
Balance sheet is a constraint not a cushion
Net debt position of -$32.7B versus $8.4B liquid cash means Orix depends on ongoing funding markets — normal for a financial but a real cyclical exposure.
This looks like a well-run Japanese financial conglomerate: cash flows are real and growing, earnings quality signals are clean, and margins are stable. The two red flags the modules flagged (46.8% share CAGR, Altman Z distress) both smell like artifacts of the classification rather than real quality issues — the share jump is almost certainly a split, and Altman Z is the wrong model for a leveraged financier. I'd grade this Solid. Not Fortress because it's a leveraged financial with structural funding dependence and I lack visibility into segment durability, but I see nothing forensically concerning in the reported numbers.
Verify before trusting this (6)
  • Confirm whether the 2025-to-2026 diluted share jump from 232M to 1.14B reflects a stock split versus genuine issuance
  • Segment mix (leasing, banking, insurance, PE, real estate, energy) and concentration of earnings
  • Funding profile: maturity ladder, cost of debt, deposit base, and reliance on wholesale funding
  • Credit quality metrics in the leasing and lending books (NPL ratios, provisions)
  • Nature of the 2026-06-23 J-Other insider transactions (likely director share awards)
  • Dividend and buyback history on a true per-share basis
Valuation / Mispricing
-46
Rich
edge √Σ 20 · risk √Σ 70 · conf 5/10
Price $38.50 vs composite FV $22.26 / signal-adj $23.33 = ~ -39% headline downside; adjusting for EPV-floor conservatism, realistic gap is closer to -15 to -25%. attractive below $30.00

The e2e composite pegs fair value at $22.26 and the signal-adjusted FV at $23.33, implying roughly -39% downside from the $38.50 price. That said, the FV here leans on an EPV-floor method, which for a diversified Japanese financial conglomerate with leasing, insurance, real estate, and renewables likely understates deserved value — EPV floors typically miss growth optionality and the book/embedded value of insurance and PE assets. Peers and simple P/B/P/E checks on Japanese financials generally put Orix in a reasonable, not stretched, zone. So the true gap is probably narrower than -39%, but the direction is clear: the price sits above a defensible deserved value. Company-quality is Solid (40), which lifts deserved value modestly but does not close the gap. Earnings quality is clean, so no additional haircut. Net: this reads as modestly rich rather than a screaming short — you are paying full price for a decent, diversified compounder with limited near-term catalyst to re-rate higher.

Cheap signals 1
m20
Solid quality lifts deserved value
Diversified cash generation, clean earnings quality, and steady growth argue for a modest premium over pure EPV — but not enough to justify a 65%+ mark-up.
Rich / priced-in 3
m55
Price ~65% above composite FV
$38.50 vs $22.26 composite and $23.33 signal-adjusted FV implies the market is paying a large premium versus the model's deserved value.
m35
EPV-floor is the only method
Fair value rests on an EPV floor of $22.26, which by construction ignores growth and embedded/book value in insurance and PE — the real deserved value is likely higher, but still below $38.50.
m25
No obvious catalyst for a re-rate
Mature Japanese financial conglomerate; the bull case is essentially 'sum-of-parts discount closes,' which has been the pitch for years without much movement.
I am not buying IX at $38.50. The composite FV of $22 is probably too harsh because EPV alone under-counts a diversified financial conglomerate, but even generous adjustments do not get me to today's price. This is a fine, boring business trading at a full-to-rich price with no clear catalyst. I would want it in the low-$30s before it becomes interesting on valuation alone.
Verify before trusting this (5)
  • Segment-level ROE and embedded value in insurance and PE investments
  • Latest book value per share and P/B vs Japanese financial peers
  • Whether the 46.8% share CAGR is a split (confirms quality lens read) or real dilution
  • Dividend and buyback policy — capital return is the main mechanism to close any SOTP discount
  • FX assumptions in the ADR price vs underlying JPY listing
General Sentiment
-10
Balanced
tail √Σ 43 · head √Σ 52 · conf 6/10

IX is a textbook quiet-quality ADR with minimal narrative intensity and low cult coefficient — meaning the market tape barely notices this name in either direction. With a beta of 0.72, the modestly risk-on regime (VIX 15.1, S&P near highs) offers only a faint tailwind, and the low-volatility profile means macro cross-currents get muted rather than amplified. There is no active story pulling capital in and no breaking narrative pushing it out. Recent 4% swings happened on zero identifiable news, which itself signals a name moving on flow and rotation rather than conviction. Rates at 4.69% and a stretched market PE of 25.7 are a mild headwind for a financial conglomerate carrying leverage, but Orix's diversified cash generation dampens that exposure versus pure-play lenders. Analyst tone is quiet, target revisions are absent from the brief, and Western coverage is thin — the foreignness-as-narrative bear thesis has some truth, but it cuts both ways: no story to sell off, no story to chase. Momentum is quietly positive (15.9% recent vs 8.8% long-term, deleveraging balance sheet), which provides a soft technical tailwind. Net: forces roughly cancel. This is a name where sentiment is a non-event, and price action will be dictated by fundamentals and flows, not narrative pressure.

Tailwinds 2
m28
Mildly risk-on tape, muted by low beta
Regime score +32 helps broadly, but 0.72 beta means IX captures only a fraction of the risk-on lift. Background support, not a driver.
m32
Quiet positive momentum, no narrative to break
Recent returns are outpacing the long-term trend and leverage is falling — a soft technical bid with no fragile story that could crack under pressure.
Headwinds 3
m30
Rates and stretched market PE press on financials
10y at 4.69% and market PE 25.7 create a mild valuation ceiling for a leveraged financial conglomerate, though diversification (insurance, real estate, renewables) softens the blow versus pure lenders.
m35
No narrative, no Western sponsorship
Minimal narrative intensity and low cult coefficient mean no marginal buyer is chasing the story. ADR liquidity is thin, analyst tone quiet — the stock has no sentiment engine to compound gains.
m25
Unexplained drawdowns signal flow-driven tape
Recent 4% moves with no news attribution suggest the name is a rotation vehicle rather than a conviction hold — vulnerable to passive ADR outflows if Japan sentiment cools.
This is a sentiment non-event. Orix has no active narrative to ride and no active narrative to defend against — the tape barely touches it (beta 0.72), analysts are quiet, and the recent moves are pure flow noise. The mild risk-on regime is a small positive, rate pressure is a small negative, and they roughly cancel. I lean a hair negative only because a name with no story in a stretched market has no sponsorship to catch it if Japan-ADR flows reverse, but the honest call is Balanced. Sentiment is not the reason to own or avoid this one — fundamentals and valuation will decide it.
Verify before trusting this (4)
  • Any pickup in Western analyst initiations or target revisions that could awaken the SOTP-discount narrative
  • Yen and JGB curve moves that would shift the Japan financials rotation trade
  • Sector rotation flows into or out of Japanese ADRs (EWJ, DXJ) as a proxy for sponsorship
  • Any management action (buyback, spin, dividend hike) that could inject a narrative into a currently story-less name
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
+2
Growing
edge √Σ 87 · risk √Σ 85 · conf 6/10

Two world-level forces dominate. First, the end of Japanese zero rates: for a domestic insurer/lessor/bank hybrid, rising reinvestment yields are a durable margin tailwind that took a decade to arrive and will take years to fully flow through — this is the structural case. Second, higher global long rates (10y 4.69%) with a mildly positive curve cut the other way on ORIX's asset-monetization and US credit/real-asset side, slowing exits and pressuring marks. Net: the Japanese domestic engine improves while the global capital-recycling engine faces friction, which is exactly why growth should stay positive but not accelerate. Renewables and infrastructure concessions add a real, if slow-burning, capex-backed growth vector.

Growth drivers 4
m53
Japanese rate normalization lifts spread and investment income
ORIX's life insurance, banking and domestic leasing books have spent a decade earning near-zero reinvestment yields. As JGB and domestic loan yields reset upward, new-money yields on the insurance/investment portfolio and lease spreads widen mechanically over multiple years — a slow but high-certainty tailwind that does not require volume growth.
m46
Share gain versus a steady category
Recent revenue YoY of 15.9% against industry ~6.8% and category median 7.1% is a +9pp gap. This is not tide-riding: the gap comes from segments (asset management, PE/concessions, aircraft and equipment leasing, renewables) where ORIX has been adding capital while many peers de-risked.
m42
Capital-recycling engine plus per-share arithmetic
The model is buy-operate-monetize: gains on sale of real estate, PE stakes and concession assets recur structurally, and management has been returning capital and shrinking the share count. Even flat operating earnings translate into rising per-share earnings, which supports the earnings CAGR of 13.7% versus revenue CAGR of 8.8%.
m30
Multi-year consistency of the top line
Avg annual growth ~9.0% with 6.9% volatility and every year positive — for a conglomerate with lumpy segments, that is evidence of genuine diversification rather than one lucky engine. Layer-1 outlook is a tailwind and momentum reads strong positive.
Growth risks 5
m58
Earnings quality depends on asset-sale gains
A meaningful share of the 27.2% recent earnings YoY is realization-driven (property, PE and investment exits). Realizations are discretionary and mean-reverting; a slower exit window compresses reported growth quickly without any deterioration in the underlying franchise. This is the single biggest reason not to call Accelerating.
m38
Rate/credit exposure in real estate and US private credit
With the 10y at 4.69% and a macro-headwind backdrop, ORIX's US corporate credit, CRE and real-asset marks are the vulnerable line. Higher-for-longer pressures exit valuations and can force provisioning in ORIX USA even while Japanese spread income improves.
m27
FX translation noise in ADR-level results
Reported growth for a JPY-earning conglomerate translated to USD is materially FX-dependent; yen moves can swing headline ADR revenue and EPS in either direction independent of business direction. It makes both the trajectory and the estimate comparisons less clean than they appear.
m35
Conglomerate drag caps structural growth
No single segment is large and fast enough to lift the whole; mature domestic leasing and banking grow at roughly nominal GDP. Over 2-3 years the mix pulls the group toward mid-single-digit organic growth regardless of individual wins.
m23
Very thin, noisy analyst modeling
The estimate record shows swings of +267%, +150%, +111% and then a -0.61 actual versus -0.53 estimate. That pattern signals poor coverage and quarterly volatility rather than repeatable outperformance — it degrades confidence in any variant call against consensus.
vs expectations: ~6m above · 1y inline · 2-3y unknown
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -7.0% v0.6.0 View full prediction →

When we made this prediction on Aug 23, 2026, IX was $38.49. We expect it to be $35.80 by Feb 2027, and we consider it great value under $30.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 23, 2026.

Price when predicted$38.49
Our estimate for Feb 2027$35.80-7.0%
Great value below$30.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06