ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
Overall 1ORCL gets a fundamental rating of 5 out of 10. We evaluated 1ORCL against 97 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ORCL was profitable.
In the past year 1ORCL had a positive cash flow from operations.
In the past 5 years 1ORCL has always been profitable.
In the past 5 years 1ORCL always reported a positive cash flow from operatings.
1.2 Ratios
1ORCL has a better Return On Assets (7.54%) than 76.04% of its industry peers.
With an excellent Return On Equity value of 72.68%, 1ORCL belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.10%, 1ORCL is doing good in the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ORCL is in line with the industry average of 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 72.68% | ||
| ROIC | 10.1% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.17%
ROIC(5y)11.09%
1.3 Margins
1ORCL has a Profit Margin of 21.80%. This is amongst the best in the industry. 1ORCL outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of 1ORCL has declined.
With an excellent Operating Margin value of 31.80%, 1ORCL belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
1ORCL's Operating Margin has declined in the last couple of years.
1ORCL has a Gross Margin (71.12%) which is in line with its industry peers.
1ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.8% | ||
| PM (TTM) | 21.8% | ||
| GM | 71.12% |
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1ORCL is still creating some value.
1ORCL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ORCL has been reduced compared to 5 years ago.
1ORCL has a better debt/assets ratio than last year.
2.2 Solvency
1ORCL has an Altman-Z score of 2.01. This is not the best score and indicates that 1ORCL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of 1ORCL (2.01) is comparable to the rest of the industry.
The Debt to FCF ratio of 1ORCL is 16.57, which is on the high side as it means it would take 1ORCL, 16.57 years of fcf income to pay off all of its debts.
1ORCL's Debt to FCF ratio of 16.57 is in line compared to the rest of the industry. 1ORCL outperforms 46.88% of its industry peers.
A Debt/Equity ratio of 5.27 is on the high side and indicates that 1ORCL has dependencies on debt financing.
1ORCL's Debt to Equity ratio of 5.27 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 82.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.01
WACC10.02%
2.3 Liquidity
1ORCL has a Current Ratio of 1.02. This is a normal value and indicates that 1ORCL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.02, 1ORCL is not doing good in the industry: 63.54% of the companies in the same industry are doing better.
A Quick Ratio of 1.02 indicates that 1ORCL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.02, 1ORCL is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.24% over the past year.
The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.23% in the past year.
Measured over the past years, 1ORCL shows a small growth in Revenue. The Revenue has been growing by 6.04% on average per year.
EPS 1Y (TTM)6.24%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%4.26%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%6.4%
3.2 Future
The Earnings Per Share is expected to grow by 19.08% on average over the next years. This is quite good.
Based on estimates for the next years, 1ORCL will show a quite strong growth in Revenue. The Revenue will grow by 14.67% on average per year.
EPS Next Y9.5%
EPS Next 2Y10.6%
EPS Next 3Y14.18%
EPS Next 5Y19.08%
Revenue Next Year7.19%
Revenue Next 2Y10.57%
Revenue Next 3Y13.08%
Revenue Next 5Y14.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.80, which indicates a rather expensive current valuation of 1ORCL.
Based on the Price/Earnings ratio, 1ORCL is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, 1ORCL is valued at the same level.
A Price/Forward Earnings ratio of 21.67 indicates a rather expensive valuation of 1ORCL.
1ORCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1ORCL is cheaper than 77.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 1ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 21.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ORCL is valued a bit cheaper than the industry average as 61.46% of the companies are valued more expensively.
1ORCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.25 | ||
| EV/EBITDA | 17.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ORCL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1ORCL may justify a higher PE ratio.
A more expensive valuation may be justified as 1ORCL's earnings are expected to grow with 14.18% in the coming years.
PEG (NY)2.61
PEG (5Y)2.61
EPS Next 2Y10.6%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, 1ORCL has a reasonable but not impressive dividend return.
The stock price of 1ORCL dropped by -32.49% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.91, 1ORCL pays a better dividend. On top of this 1ORCL pays more dividend than 85.42% of the companies listed in the same industry.
With a Dividend Yield of 1.37, 1ORCL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of 1ORCL is nicely growing with an annual growth rate of 15.04%!
Dividend Growth(5Y)15.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ORCL pays out 36.53% of its income as dividend. This is a sustainable payout ratio.
1ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.53%
EPS Next 2Y10.6%
EPS Next 3Y14.18%
BIT:1ORCL (5/7/2025, 7:00:00 PM)
130.18
+15.26 (+13.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.86%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap365.05B
Analysts77.87
Price Target160.23 (23.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.42
Dividend Growth(5Y)15.04%
DP36.53%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.05%
Min EPS beat(2)-3.45%
Max EPS beat(2)-2.65%
EPS beat(4)1
Avg EPS beat(4)-1.55%
Min EPS beat(4)-3.45%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-0.15%
EPS beat(12)6
Avg EPS beat(12)0.28%
EPS beat(16)9
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)0
Avg Revenue beat(16)-1.84%
PT rev (1m)-8.84%
PT rev (3m)-18.95%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 21.67 | ||
| P/S | 7.42 | ||
| P/FCF | 71.25 | ||
| P/OCF | 19.96 | ||
| P/B | 24.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.98 |
EPS(TTM)5.25
EY4.03%
EPS(NY)6.01
Fwd EY4.61%
FCF(TTM)1.83
FCFY1.4%
OCF(TTM)6.52
OCFY5.01%
SpS17.54
BVpS5.26
TBVpS-15.9
PEG (NY)2.61
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 72.68% | ||
| ROCE | 13.46% | ||
| ROIC | 10.1% | ||
| ROICexc | 11.68% | ||
| ROICexgc | 28.53% | ||
| OM | 31.8% | ||
| PM (TTM) | 21.8% | ||
| GM | 71.12% | ||
| FCFM | 10.42% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.17%
ROIC(5y)11.09%
ROICexc(3y)13.3%
ROICexc(5y)15.76%
ROICexgc(3y)42.91%
ROICexgc(5y)70.38%
ROCE(3y)14.9%
ROCE(5y)14.78%
ROICexcg growth 3Y-21.61%
ROICexcg growth 5Y-34.19%
ROICexc growth 3Y-14.61%
ROICexc growth 5Y-9.52%
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 247.56% | ||
| Cap/Sales | 26.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.27% | ||
| Profit Quality | 47.8% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.01 |
F-Score6
WACC10.02%
ROIC/WACC1.01
Cap/Depr(3y)132.9%
Cap/Depr(5y)104.92%
Cap/Sales(3y)13.67%
Cap/Sales(5y)10.06%
Profit Quality(3y)95.76%
Profit Quality(5y)100.3%
High Growth Momentum
Growth
EPS 1Y (TTM)6.24%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%4.26%
EPS Next Y9.5%
EPS Next 2Y10.6%
EPS Next 3Y14.18%
EPS Next 5Y19.08%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%6.4%
Revenue Next Year7.19%
Revenue Next 2Y10.57%
Revenue Next 3Y13.08%
Revenue Next 5Y14.67%
EBIT growth 1Y14.36%
EBIT growth 3Y0.61%
EBIT growth 5Y2.77%
EBIT Next Year31.48%
EBIT Next 3Y21.44%
EBIT Next 5Y23.52%
FCF growth 1Y-20.36%
FCF growth 3Y-4.96%
FCF growth 5Y-1.74%
OCF growth 1Y33.81%
OCF growth 3Y5.53%
OCF growth 5Y5.11%