ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1ORCL. 1ORCL was compared to 104 industry peers in the Software industry. There are concerns on the financial health of 1ORCL while its profitability can be described as average. 1ORCL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1ORCL had positive earnings in the past year.
In the past year 1ORCL had a positive cash flow from operations.
Each year in the past 5 years 1ORCL has been profitable.
1ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.39%, 1ORCL is doing good in the industry, outperforming 74.04% of the companies in the same industry.
The Return On Equity of 1ORCL (60.84%) is better than 97.12% of its industry peers.
1ORCL's Return On Invested Capital of 11.77% is amongst the best of the industry. 1ORCL outperforms 81.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ORCL is in line with the industry average of 11.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROIC | 11.77% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
1.3 Margins
1ORCL's Profit Margin of 21.68% is amongst the best of the industry. 1ORCL outperforms 86.54% of its industry peers.
1ORCL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.45%, 1ORCL belongs to the top of the industry, outperforming 93.27% of the companies in the same industry.
1ORCL's Operating Margin has declined in the last couple of years.
1ORCL's Gross Margin of 70.51% is in line compared to the rest of the industry. 1ORCL outperforms 52.88% of its industry peers.
1ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% |
OM growth 3Y-5.53%
OM growth 5Y-2.86%
PM growth 3Y11.06%
PM growth 5Y-3.53%
GM growth 3Y-3.75%
GM growth 5Y-2.42%
2. Health
2.1 Basic Checks
1ORCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1ORCL has more shares outstanding
The number of shares outstanding for 1ORCL has been reduced compared to 5 years ago.
The debt/assets ratio for 1ORCL has been reduced compared to a year ago.
2.2 Solvency
1ORCL has an Altman-Z score of 3.32. This indicates that 1ORCL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1ORCL (3.32) is comparable to the rest of the industry.
1ORCL has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
1ORCL has a Debt to Equity ratio of 4.17. This is amonst the worse of the industry: 1ORCL underperforms 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.32 |
ROIC/WACC1.05
WACC11.18%
2.3 Liquidity
A Current Ratio of 0.75 indicates that 1ORCL may have some problems paying its short term obligations.
With a Current ratio value of 0.75, 1ORCL is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that 1ORCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, 1ORCL is doing worse than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
1ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.26%, which is quite good.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
The Revenue has grown by 8.38% in the past year. This is quite good.
Measured over the past years, 1ORCL shows a small growth in Revenue. The Revenue has been growing by 8.00% on average per year.
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
3.2 Future
Based on estimates for the next years, 1ORCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.67% on average per year.
1ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.38% yearly.
EPS Next Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue Next Year17.03%
Revenue Next 2Y18.15%
Revenue Next 3Y17.96%
Revenue Next 5Y16.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.42 indicates a quite expensive valuation of 1ORCL.
73.08% of the companies in the same industry are more expensive than 1ORCL, based on the Price/Earnings ratio.
1ORCL is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.84, 1ORCL can be considered very expensive at the moment.
1ORCL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.80. 1ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.42 | ||
| Fwd PE | 37.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ORCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1ORCL has a very decent profitability rating, which may justify a higher PE ratio.
1ORCL's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.95
PEG (5Y)4.71
EPS Next 2Y17.8%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
1ORCL has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 2.11, 1ORCL pays a better dividend. On top of this 1ORCL pays more dividend than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, 1ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of 1ORCL grows each year by 12.29%, which is quite nice.
Dividend Growth(5Y)12.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.12% of the earnings are spent on dividend by 1ORCL. This is a low number and sustainable payout ratio.
1ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.12%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
BIT:1ORCL (7/31/2025, 7:00:00 PM)
227.1
+13.05 (+6.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.69%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap637.89B
Analysts78.7
Price Target195.72 (-13.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend1.45
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.04%
Min EPS beat(2)-3.45%
Max EPS beat(2)1.38%
EPS beat(4)2
Avg EPS beat(4)-0.46%
Min EPS beat(4)-3.45%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-0.41%
EPS beat(12)6
Avg EPS beat(12)-0.45%
EPS beat(16)9
Avg EPS beat(16)0.61%
Revenue beat(2)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)1
Avg Revenue beat(16)-1.81%
PT rev (1m)3.48%
PT rev (3m)12.11%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.42 | ||
| Fwd PE | 37.84 | ||
| P/S | 12.81 | ||
| P/FCF | N/A | ||
| P/OCF | 35.31 | ||
| P/B | 35.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.95 |
EPS(TTM)5.23
EY2.3%
EPS(NY)6
Fwd EY2.64%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)6.43
OCFY2.83%
SpS17.73
BVpS6.32
TBVpS-14.31
PEG (NY)2.95
PEG (5Y)4.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROCE | 13.3% | ||
| ROIC | 11.77% | ||
| ROICexc | 12.83% | ||
| ROICexgc | 27.68% | ||
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
ROICexc(3y)13.1%
ROICexc(5y)16.61%
ROICexgc(3y)39.23%
ROICexgc(5y)55.84%
ROCE(3y)13.45%
ROCE(5y)14.55%
ROICexcg growth 3Y-23.53%
ROICexcg growth 5Y-29.92%
ROICexc growth 3Y-14.65%
ROICexc growth 5Y-10.84%
OM growth 3Y-5.53%
OM growth 5Y-2.86%
PM growth 3Y11.06%
PM growth 5Y-3.53%
GM growth 3Y-3.75%
GM growth 5Y-2.42%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 343.62% | ||
| Cap/Sales | 36.96% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 85.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.32 |
F-Score6
WACC11.18%
ROIC/WACC1.05
Cap/Depr(3y)199.27%
Cap/Depr(5y)163.1%
Cap/Sales(3y)22.44%
Cap/Sales(5y)16.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
EPS Next Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year17.03%
Revenue Next 2Y18.15%
Revenue Next 3Y17.96%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year37.99%
EBIT Next 3Y27.05%
EBIT Next 5Y25.21%
FCF growth 1Y-103.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.5%
OCF growth 3Y29.72%
OCF growth 5Y9.64%