ORACLE CORP (ORCL)
US68389X1054 - Common Stock
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 276 industry peers in the Software industry. While ORCL has a great profitability rating, there are quite some concerns on its financial health. ORCL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ORCL had positive earnings in the past year.
ORCL had a positive operating cash flow in the past year.
Of the past 5 years ORCL 4 years were profitable.
ORCL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ORCL has a better Return On Assets (7.76%) than 85.14% of its industry peers.
With an excellent Return On Equity value of 189.28%, ORCL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ORCL's Return On Invested Capital of 12.51% is amongst the best of the industry. ORCL outperforms 90.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORCL is above the industry average of 9.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 189.28% | ||
| ROIC | 12.51% |
ROA(3y)7.65%
ROA(5y)8.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.5%
ROIC(5y)13.54%
1.3 Margins
With an excellent Profit Margin value of 20.27%, ORCL belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
In the last couple of years the Profit Margin of ORCL has grown nicely.
Looking at the Operating Margin, with a value of 29.54%, ORCL belongs to the top of the industry, outperforming 96.38% of the companies in the same industry.
In the last couple of years the Operating Margin of ORCL has declined.
ORCL has a Gross Margin of 71.53%. This is comparable to the rest of the industry: ORCL outperforms 59.42% of its industry peers.
ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.54% | ||
| PM (TTM) | 20.27% | ||
| GM | 71.53% |
OM growth 3Y-8.8%
OM growth 5Y-4.82%
PM growth 3Y-13.1%
PM growth 5Y13.32%
GM growth 3Y-2.94%
GM growth 5Y-1.74%
2. Health
2.1 Basic Checks
ORCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for ORCL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
ORCL has a Altman-Z score of 2.21. This is comparable to the rest of the industry: ORCL outperforms 51.81% of its industry peers.
The Debt to FCF ratio of ORCL is 7.18, which is on the high side as it means it would take ORCL, 7.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.18, ORCL is in line with its industry, outperforming 52.54% of the companies in the same industry.
ORCL has a Debt/Equity ratio of 14.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ORCL (14.67) is worse than 88.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.27
WACC9.85%
2.3 Liquidity
A Current Ratio of 0.85 indicates that ORCL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, ORCL is doing worse than 81.52% of the companies in the same industry.
ORCL has a Quick Ratio of 0.85. This is a bad value and indicates that ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
ORCL has a Quick ratio of 0.85. This is amonst the worse of the industry: ORCL underperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.58% over the past year.
Measured over the past years, ORCL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.49% on average per year.
EPS 1Y (TTM)8.58%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%-2.4%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.25%
3.2 Future
ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.05% yearly.
ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.03% yearly.
EPS Next Y14.54%
EPS Next 2Y14.7%
EPS Next 3Y14.61%
EPS Next 5Y10.05%
Revenue Next Year8.72%
Revenue Next 2Y9.74%
Revenue Next 3Y10.43%
Revenue Next 5Y12.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.80 indicates a rather expensive valuation of ORCL.
Compared to the rest of the industry, the Price/Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 77.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (28.42), we can say ORCL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.65, the valuation of ORCL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 74.28% of the companies listed in the same industry.
ORCL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued cheaper than 81.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ORCL is valued a bit cheaper than 72.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 21.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ORCL has a very decent profitability rating, which may justify a higher PE ratio.
ORCL's earnings are expected to grow with 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)2.61
EPS Next 2Y14.7%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, ORCL has a reasonable but not impressive dividend return.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 7.89. ORCL pays more dividend than 93.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.06%!
ORCL has been paying a dividend for at least 10 years, so it has a reliable track record.
ORCL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.06%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
41.07% of the earnings are spent on dividend by ORCL. This is a bit on the high side, but may be sustainable.
ORCL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.07%
EPS Next 2Y14.7%
EPS Next 3Y14.61%
ORACLE CORP
NYSE:ORCL (6/14/2024, 7:27:16 PM)
After market: 138.001 -0.13 (-0.09%)138.13
-1.72 (-1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap379.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 21.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.71
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 189.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.54% | ||
| PM (TTM) | 20.27% | ||
| GM | 71.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.58%
EPS 3Y5.9%
EPS 5Y
EPS Q2Q%
EPS Next Y14.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y