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 100 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
1ORCL had positive earnings in the past year.
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 (7.39%) than 77.00% of its industry peers.
1ORCL has a Return On Equity of 60.84%. This is amongst the best in the industry. 1ORCL outperforms 98.00% of its industry peers.
The Return On Invested Capital of 1ORCL (11.77%) is better than 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ORCL is in line with the industry average of 10.36%.
| 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 has a Profit Margin of 21.68%. This is amongst the best in the industry. 1ORCL outperforms 90.00% of its industry peers.
In the last couple of years the Profit Margin of 1ORCL has declined.
1ORCL has a better Operating Margin (31.45%) than 94.00% of its industry peers.
1ORCL's Operating Margin has declined in the last couple of years.
1ORCL has a Gross Margin (70.51%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for 1ORCL has been increased compared to 1 year ago.
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
An Altman-Z score of 3.26 indicates that 1ORCL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, 1ORCL is in line with its industry, outperforming 53.00% of the companies in the same industry.
1ORCL has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.17, 1ORCL is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC1.09
WACC10.81%
2.3 Liquidity
1ORCL has a Current Ratio of 0.75. This is a bad value and indicates that 1ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
1ORCL has a worse Current ratio (0.75) than 78.00% of its industry peers.
A Quick Ratio of 0.75 indicates that 1ORCL may have some problems paying its short term obligations.
1ORCL has a Quick ratio of 0.75. This is in the lower half of the industry: 1ORCL underperforms 78.00% of its industry peers.
| 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.
1ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.22% yearly.
Looking at the last year, 1ORCL shows a quite strong growth in Revenue. The Revenue has grown by 8.38% in the last year.
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.
Based on estimates for the next years, 1ORCL will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
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
1ORCL is valuated quite expensively with a Price/Earnings ratio of 40.03.
Based on the Price/Earnings ratio, 1ORCL is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.35. 1ORCL is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 34.90 indicates a quite expensive valuation of 1ORCL.
1ORCL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1ORCL to the average of the S&P500 Index (37.54), we can say 1ORCL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.03 | ||
| Fwd PE | 34.9 |
4.2 Price Multiples
1ORCL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.33 |
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.
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)2.72
PEG (5Y)4.34
EPS Next 2Y17.8%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
1ORCL has a yearly dividend return of 0.80%, which is pretty low.
1ORCL's Dividend Yield is rather good when compared to the industry average which is at 2.09. 1ORCL pays more dividend than 81.00% of the companies in the same industry.
With a Dividend Yield of 0.80, 1ORCL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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.
The dividend of 1ORCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.12%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
BIT:1ORCL (7/24/2025, 7:00:00 PM)
205.35
-4.85 (-2.31%)
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 Cap576.79B
Analysts78.7
Price Target195.72 (-4.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend1.46
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)22.62%
PT rev (3m)12.11%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.03 | ||
| Fwd PE | 34.9 | ||
| P/S | 11.81 | ||
| P/FCF | N/A | ||
| P/OCF | 32.57 | ||
| P/B | 33.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.33 |
EPS(TTM)5.13
EY2.5%
EPS(NY)5.88
Fwd EY2.87%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)6.31
OCFY3.07%
SpS17.38
BVpS6.19
TBVpS-14.03
PEG (NY)2.72
PEG (5Y)4.34
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 | 3.26 |
F-Score6
WACC10.81%
ROIC/WACC1.09
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%