ORIX Corporation (TSE: 8591; NYSE: IX), a diversified financial services group, has announced the current status of its share repurchase program. The buyback is being conducted under the authorization granted by its Board of Directors on May 8, 2024, and is in compliance with its Articles of Incorporation and the Companies Act of Japan.
As of September 30, 2024, ORIX has repurchased 1,599,300 of its common shares for a total cost of approximately 5.52 billion Japanese yen. The repurchase period for this tranche ran from September 1, 2024, to September 30, 2024. The company has been executing the buybacks through market purchases based on a discretionary dealing contract.
The overall repurchase plan, as resolved in May, allows for the acquisition of up to 40 million shares, which represents about 3.5% of the total outstanding shares, excluding treasury shares. The maximum total repurchase amount has been set at 50 billion yen, with the buyback period extending from May 15, 2024, to March 31, 2025.
To date, under this plan, ORIX has bought back a cumulative total of 9,212,500 shares, spending 31.9 billion yen. The repurchase initiative is part of the company's strategy to enhance shareholder value.
ORIX Corporation, founded in 1964, operates globally in sectors including financing and investment, life insurance, banking, asset management, real estate, and environment and energy, among others. With a workforce of around 34,000, ORIX has a presence in approximately 30 countries and regions.
This report is based on a press release statement and contains forward-looking statements regarding future events and financial outcomes. These are subject to risks and uncertainties, and actual results may differ. Risk factors are detailed in the company's filings with the United States Securities and Exchange Commission.
In other recent news, ORIX Corporation reported a substantial 38% increase in net income for the first quarter, reaching JPY86.7 billion, primarily driven by steady earnings in the finance sector and substantial profit increases in the inbound tourism segment.
However, ORIX USA noted a decline in profits due to cautious risk management, while profits in the Asia and Australia segment dropped due to the absence of valuation gains. The Tokyo-based company also disclosed the status of its ongoing share repurchase program, revealing that it has cumulatively repurchased 7,613,200 shares at a total cost of 26.38 billion yen.
ORIX Corporation has announced the disposal of its own shares as restricted stock, scheduled for December 2024. The recipients of this restricted stock are employees of ORIX and its subsidiaries, as part of an incentive plan targeting manager- and executive-level employees to promote medium- to long-term corporate value enhancement. The shares will be subject to a transfer restriction period from December 2, 2024, to November 30, 2027.
After resuming coverage on ORIX Corp, BofA Securities issued a Neutral rating, citing challenges in forecasting earnings due to significant volatility in profits, particularly from the private equity investment segment. These are the recent developments in ORIX Corporation's operations.
InvestingPro Insights
ORIX Corporation's share repurchase program aligns well with its strong financial position and commitment to shareholder value. According to InvestingPro data, ORIX boasts a market capitalization of $26.3 billion and a P/E ratio of 10.49, indicating that the stock may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip highlighting that ORIX is trading at a low P/E ratio relative to its near-term earnings growth.
The company's financial strength is evident in its ability to maintain dividend payments for 33 consecutive years, as noted in another InvestingPro Tip. With a current dividend yield of 2.49% and a impressive dividend growth of 17.61% over the last twelve months, ORIX demonstrates its commitment to returning value to shareholders through both buybacks and dividends.
ORIX's profitability is also noteworthy, with a gross profit of $7.4 billion and an operating income margin of 19.58% for the last twelve months. These figures underscore the company's ability to generate substantial returns, which is reflected in its strong performance over the past five years, as mentioned in an additional InvestingPro Tip.
For investors seeking more comprehensive insights, InvestingPro offers 6 additional tips for ORIX Corporation, providing a deeper understanding of the company's financial health and market position.
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