ORACLE CORP (ORC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ORC - US68389X1054 - Common Stock
148.9 EUR
-5.2 (-3.37%)
ORC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. There are concerns on the financial health of ORC while its profitability can be described as average. ORC is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year ORC was profitable.
- ORC had a positive operating cash flow in the past year.
- ORC had positive earnings in each of the past 5 years.
- Each year in the past 5 years ORC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.52%, ORC is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
- ORC has a better Return On Equity (51.50%) than 90.35% of its industry peers.
- With a decent Return On Invested Capital value of 8.17%, ORC is doing good in the industry, outperforming 61.40% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ORC is below the industry average of 13.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROIC | 8.17% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.37%
ROIC(5y)10.18%
1.3 Margins
- ORC has a better Profit Margin (25.28%) than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of ORC has declined.
- Looking at the Operating Margin, with a value of 31.81%, ORC belongs to the top of the industry, outperforming 90.35% of the companies in the same industry.
- In the last couple of years the Operating Margin of ORC has declined.
- Looking at the Gross Margin, with a value of 68.54%, ORC is in line with its industry, outperforming 42.11% of the companies in the same industry.
- ORC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 25.28% | ||
| GM | 68.54% |
OM growth 3Y-5.7%
OM growth 5Y-2.96%
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ORC is destroying value.
- ORC has more shares outstanding than it did 1 year ago.
- ORC has less shares outstanding than it did 5 years ago.
- ORC has a better debt/assets ratio than last year.
2.2 Solvency
- ORC has an Altman-Z score of 2.31. This is not the best score and indicates that ORC is in the grey zone with still only limited risk for bankruptcy at the moment.
- ORC has a Altman-Z score (2.31) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.49 is on the high side and indicates that ORC has dependencies on debt financing.
- The Debt to Equity ratio of ORC (3.49) is worse than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.31 |
ROIC/WACC0.78
WACC10.44%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that ORC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.91, ORC is doing worse than 78.07% of the companies in the same industry.
- A Quick Ratio of 0.91 indicates that ORC may have some problems paying its short term obligations.
- ORC's Quick ratio of 0.91 is on the low side compared to the rest of the industry. ORC is outperformed by 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.95% over the past year.
- Measured over the past years, ORC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
- Looking at the last year, ORC shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
- ORC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
EPS 1Y (TTM)16.95%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%53.74%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%14.22%
3.2 Future
- ORC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.20% yearly.
- ORC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.83% yearly.
EPS Next Y24.78%
EPS Next 2Y15.82%
EPS Next 3Y21.74%
EPS Next 5Y28.2%
Revenue Next Year17.39%
Revenue Next 2Y23.23%
Revenue Next 3Y31.52%
Revenue Next 5Y31.83%
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
- Based on the Price/Earnings ratio of 25.54, the valuation of ORC can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ORC indicates a somewhat cheap valuation: ORC is cheaper than 71.93% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, ORC is valued at the same level.
- A Price/Forward Earnings ratio of 21.79 indicates a rather expensive valuation of ORC.
- Based on the Price/Forward Earnings ratio, ORC is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. ORC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
- ORC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.09 |
4.3 Compensation for Growth
- ORC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ORC has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ORC's earnings are expected to grow with 21.74% in the coming years.
PEG (NY)1.03
PEG (5Y)2.77
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.12%, ORC has a reasonable but not impressive dividend return.
- In the last 3 months the price of ORC has falen by -33.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- ORC's Dividend Yield is rather good when compared to the industry average which is at 0.68. ORC pays more dividend than 82.46% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, ORC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
- On average, the dividend of ORC grows each year by 12.29%, which is quite nice.
Dividend Growth(5Y)12.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- ORC pays out 34.81% of its income as dividend. This is a sustainable payout ratio.
- ORC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.81%
EPS Next 2Y15.82%
EPS Next 3Y21.74%
ORACLE CORP / ORC.DE FAQ
Can you provide the ChartMill fundamental rating for ORACLE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to ORC.DE.
What is the valuation status of ORACLE CORP (ORC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ORACLE CORP (ORC.DE). This can be considered as Fairly Valued.
How profitable is ORACLE CORP (ORC.DE) stock?
ORACLE CORP (ORC.DE) has a profitability rating of 6 / 10.
What is the valuation of ORACLE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ORACLE CORP (ORC.DE) is 25.54 and the Price/Book (PB) ratio is 16.77.
Can you provide the expected EPS growth for ORC stock?
The Earnings per Share (EPS) of ORACLE CORP (ORC.DE) is expected to grow by 24.78% in the next year.