Orix Corporation (IX, Financial) is one of the largest diversified international financial services companies. It was founded in April 1964 in Tokyo as Orient leasing company and was renamed as Orix Corporation in 1989. Orix Corporation has a global presence across 36 countries and regions. Orix Corporation is listed on Tokyo Stock Exchange and New York Stock Exchange. Orix Corporation’s business spans into six independent segments comprising corporate financial services, retail financial services, overseas financial services, automobile related services, environment and energy services and real estate related services. Let’s quickly peek in and find out why Orix remains a bright investment choice for the long term investors.
Defining long term gain
When an investor wants to generate profit out of his investment, he first decides about the period for which an investment can be made on assets like stocks and shares. When an investment is made for a period of 12 months or more, then the profit or gain made on selling such an asset is referred to as long term capital gain. And if the loss is made during the period, it is long term capital loss. It is extremely important for an investor to analyze about the company's assets and liabilities, and its performance in the past years before investing in it. Keeping this in mind, why should investors be interested to invest in Orix. Here’s the reason why.
Thinking of investing in Orix
Orix Corporation is an investment grade rated company with more than $80 billion held in assets and $320 billion of assets under management. All the six lines of business are financially strong and well performing independent business segments, each having the potential for growth and providing high profitability.
The company has been in the spree of growing inorganically through the past year. In July last year, Orix Corporation completed the acquisition of Hartford Life Insurance K.K, a subsidiary of Hartford Financial Services Group (HIG, Financial). Again in November, the financial services company made a strategic acquisition of Yayoi Co., Limited which sells and supports businesses and financial management software for small companies.
Recently when Orix Corporation announced its Q3 result for fiscal year 2015, the earnings report exhibited year-over-year increase in revenue by 68% and increase in net income year-over-year by 58%. Notably the company has been generating continued profits for the past six fiscal years.
During the earnings presentation, the management also announced the dividend forecast for fiscal year ending March this year. This announcement was made to maintain higher transparency among shareholders who remain contended with profit distribution through dividend after a good set of financial numbers are released.
Final thoughts
Orix is a financial services conglomerate, whose business segments have huge growth potential and has been delivering profit through the years. The company is also continuously expanding its business base and is aggressively working on critical acquisitions. As Orix remains focused on improving shareholder value while being a profitable concern, investing in such a company is obviously a wise decision for long term gains.
