ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
1ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Software industry. While 1ORCL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1ORCL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1ORCL was profitable.
1ORCL had a positive operating cash flow in the past year.
In the past 5 years 1ORCL has always been profitable.
Each year in the past 5 years 1ORCL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1ORCL (7.54%) is better than 73.27% of its industry peers.
1ORCL's Return On Equity of 72.68% is amongst the best of the industry. 1ORCL outperforms 97.03% of its industry peers.
1ORCL has a Return On Invested Capital of 10.10%. This is in the better half of the industry: 1ORCL outperforms 77.23% 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 10.99%.
| 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
Looking at the Profit Margin, with a value of 21.80%, 1ORCL belongs to the top of the industry, outperforming 86.14% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ORCL has declined.
1ORCL has a better Operating Margin (31.80%) than 90.10% of its industry peers.
In the last couple of years the Operating Margin of 1ORCL has declined.
The Gross Margin of 1ORCL (71.12%) 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 | 31.8% | ||
| 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.
Compared to 1 year ago, 1ORCL has more shares outstanding
Compared to 5 years ago, 1ORCL has less shares outstanding
The debt/assets ratio for 1ORCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.44 indicates that 1ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
1ORCL has a Altman-Z score (2.44) 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.
With a Debt to Equity ratio value of 5.27, 1ORCL is not doing good in the industry: 82.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.96
WACC10.53%
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.
Looking at the Current ratio, with a value of 1.02, 1ORCL is doing worse than 64.36% of the companies in the same industry.
1ORCL has a Quick 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.
Looking at the Quick ratio, with a value of 1.02, 1ORCL is doing worse than 63.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
1ORCL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.24%.
1ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
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
1ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.08% yearly.
The Revenue is expected to grow by 14.67% on average over the next years. This is quite good.
EPS Next Y9.5%
EPS Next 2Y10.61%
EPS Next 3Y14.18%
EPS Next 5Y19.08%
Revenue Next Year7.2%
Revenue Next 2Y10.59%
Revenue Next 3Y13.09%
Revenue Next 5Y14.67%
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.
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 27.07 indicates a quite expensive valuation of 1ORCL.
76.24% of the companies in the same industry are more expensive than 1ORCL, based on the Price/Earnings ratio.
1ORCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.69, the valuation of 1ORCL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1ORCL is valued a bit cheaper than the industry average as 68.32% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1ORCL to the average of the S&P500 Index (22.13), we can say 1ORCL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 23.69 |
4.2 Price Multiples
1ORCL's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 77.91 | ||
| EV/EBITDA | 22.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1ORCL may justify a higher PE ratio.
1ORCL's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)2.85
EPS Next 2Y10.61%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, 1ORCL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, 1ORCL pays a better dividend. On top of this 1ORCL pays more dividend than 84.16% of the companies listed 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 | 1.27% |
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.
The dividend of 1ORCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.53%
EPS Next 2Y10.61%
EPS Next 3Y14.18%
BIT:1ORCL (5/27/2025, 7:00:00 PM)
142.68
+1.08 (+0.76%)
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 Cap400.11B
Analysts77.87
Price Target163.5 (14.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)-6.34%
PT rev (3m)-17.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 23.69 | ||
| P/S | 8.12 | ||
| P/FCF | 77.91 | ||
| P/OCF | 21.83 | ||
| P/B | 27.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.33 |
EPS(TTM)5.27
EY3.69%
EPS(NY)6.02
Fwd EY4.22%
FCF(TTM)1.83
FCFY1.28%
OCF(TTM)6.54
OCFY4.58%
SpS17.58
BVpS5.27
TBVpS-15.94
PEG (NY)2.85
PEG (5Y)2.85
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 | 2.44 |
F-Score6
WACC10.53%
ROIC/WACC0.96
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 2Y10.61%
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 Year7.2%
Revenue Next 2Y10.59%
Revenue Next 3Y13.09%
Revenue Next 5Y14.67%
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%