ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
1ORCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 industry peers in the Software industry. 1ORCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1ORCL is quite expensive at the moment. It does show 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.
Of the past 5 years 1ORCL 4 years were profitable.
1ORCL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.54%, 1ORCL is doing good in the industry, outperforming 77.45% of the companies in the same industry.
1ORCL has a Return On Equity of 72.68%. This is amongst the best in the industry. 1ORCL outperforms 97.06% of its industry peers.
1ORCL has a Return On Invested Capital of 10.10%. This is amongst the best in the industry. 1ORCL outperforms 81.37% of its industry peers.
1ORCL had an Average Return On Invested Capital over the past 3 years of 11.17%. This is in line with the industry average of 10.32%.
| 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
With an excellent Profit Margin value of 21.80%, 1ORCL belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ORCL has declined.
The Operating Margin of 1ORCL (31.80%) is better than 95.10% of its industry peers.
In the last couple of years the Operating Margin of 1ORCL has declined.
Looking at the Gross Margin, with a value of 71.12%, 1ORCL is in line with its industry, outperforming 53.92% of the companies in the same industry.
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
1ORCL 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 1ORCL. 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
1ORCL has an Altman-Z score of 3.02. This indicates that 1ORCL is financially healthy and has little risk of bankruptcy at the moment.
1ORCL has a Altman-Z score (3.02) which is comparable to the rest of the industry.
1ORCL has a debt to FCF ratio of 16.57. This is a negative value and a sign of low solvency as 1ORCL would need 16.57 years to pay back of all of its debts.
The Debt to FCF ratio of 1ORCL (16.57) is comparable to the rest of the industry.
1ORCL has a Debt/Equity ratio of 5.27. This is a high value indicating a heavy dependency on external 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.23
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.02 indicates that 1ORCL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, 1ORCL is not doing good in the industry: 68.63% 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.
1ORCL's Quick ratio of 1.02 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
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.
Measured over the past years, 1ORCL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.31%
3.2 Future
1ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.45% yearly.
Based on estimates for the next years, 1ORCL will show a quite strong growth in Revenue. The Revenue will grow by 14.85% on average per year.
EPS Next Y13.01%
EPS Next 2Y17.27%
EPS Next 3Y21.78%
EPS Next 5Y17.45%
Revenue Next Year14.09%
Revenue Next 2Y16.17%
Revenue Next 3Y16.64%
Revenue Next 5Y14.85%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.05, the valuation of 1ORCL can be described as expensive.
Based on the Price/Earnings ratio, 1ORCL is valued a bit cheaper than 75.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1ORCL is valued a bit more expensive.
With a Price/Forward Earnings ratio of 31.02, 1ORCL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ORCL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1ORCL to the average of the S&P500 Index (22.19), we can say 1ORCL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 31.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ORCL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ORCL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.99 | ||
| EV/EBITDA | 28.22 |
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 21.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)3.8
EPS Next 2Y17.27%
EPS Next 3Y21.78%
5. Dividend
5.1 Amount
1ORCL has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
1ORCL's Dividend Yield is rather good when compared to the industry average which is at 2.14. 1ORCL pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of 1ORCL grows each year by 15.04%, which is quite nice.
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.
The dividend of 1ORCL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP36.53%
EPS Next 2Y17.27%
EPS Next 3Y21.78%
BIT:1ORCL (6/17/2025, 7:00:00 PM)
183.68
+0.74 (+0.4%)
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 Cap515.08B
Analysts78.26
Price Target159.61 (-13.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.4
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)-0.38%
PT rev (3m)-15.84%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-8.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 31.02 | ||
| P/S | 10.63 | ||
| P/FCF | 101.99 | ||
| P/OCF | 28.57 | ||
| P/B | 35.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.22 |
EPS(TTM)5.24
EY2.85%
EPS(NY)5.92
Fwd EY3.22%
FCF(TTM)1.8
FCFY0.98%
OCF(TTM)6.43
OCFY3.5%
SpS17.29
BVpS5.18
TBVpS-15.67
PEG (NY)2.69
PEG (5Y)3.8
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 | 3.02 |
F-Score6
WACC8.24%
ROIC/WACC1.23
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)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
EPS Next Y13.01%
EPS Next 2Y17.27%
EPS Next 3Y21.78%
EPS Next 5Y17.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.31%
Revenue Next Year14.09%
Revenue Next 2Y16.17%
Revenue Next 3Y16.64%
Revenue Next 5Y14.85%
EBIT growth 1Y14.36%
EBIT growth 3Y0.61%
EBIT growth 5Y2.77%
EBIT Next Year31.46%
EBIT Next 3Y21.4%
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%