ORACLE CORP (ORC.DE) Stock Fundamental Analysis
Europe - FRA:ORC - US68389X1054 - Common Stock
233.2 EUR
-7.65 (-3.18%)
Taking everything into account, ORC scores 4 out of 10 in our fundamental rating. ORC was compared to 110 industry peers in the Software industry. While ORC is still in line with the averages on profitability rating, there are concerns on its financial health. ORC shows excellent growth, but is valued quite expensive already.
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
ORC's Return On Assets of 6.89% is fine compared to the rest of the industry. ORC outperforms 65.45% of its industry peers.
The Return On Equity of ORC (51.51%) is better than 91.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.32%, ORC is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ORC is below the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 51.51% | ||
| ROIC | 9.32% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.39%
ROIC(5y)10.19%
1.3 Margins
The Profit Margin of ORC (21.08%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of ORC has declined.
ORC has a Operating Margin of 31.53%. This is amongst the best in the industry. ORC outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of ORC has declined.
ORC's Gross Margin of 69.66% is in line compared to the rest of the industry. ORC outperforms 47.27% of its industry peers.
ORC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.53% | ||
| PM (TTM) | 21.08% | ||
| GM | 69.66% |
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.
The number of shares outstanding for ORC has been increased compared to 1 year ago.
Compared to 5 years ago, ORC has less shares outstanding
The debt/assets ratio for ORC has been reduced compared to a year ago.
2.2 Solvency
ORC has an Altman-Z score of 3.52. This indicates that ORC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, ORC is in line with its industry, outperforming 53.64% of the companies in the same industry.
A Debt/Equity ratio of 3.40 is on the high side and indicates that ORC has dependencies on debt financing.
The Debt to Equity ratio of ORC (3.40) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC0.88
WACC10.58%
2.3 Liquidity
A Current Ratio of 0.62 indicates that ORC may have some problems paying its short term obligations.
ORC's Current ratio of 0.62 is on the low side compared to the rest of the industry. ORC is outperformed by 84.55% of its industry peers.
A Quick Ratio of 0.62 indicates that ORC may have some problems paying its short term obligations.
ORC has a worse Quick ratio (0.62) than 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.89% over the past year.
ORC 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, ORC shows a quite strong growth in Revenue. The Revenue has grown by 9.67% in the last year.
Measured over the past years, ORC shows a small growth in Revenue. The Revenue has been growing by 8.00% on average per year.
EPS 1Y (TTM)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
3.2 Future
ORC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.00% yearly.
Based on estimates for the next years, ORC will show a very strong growth in Revenue. The Revenue will grow by 28.24% on average per year.
EPS Next Y15.15%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
EPS Next 5Y27%
Revenue Next Year17.5%
Revenue Next 2Y19.83%
Revenue Next 3Y27.65%
Revenue Next 5Y28.24%
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
With a Price/Earnings ratio of 44.33, ORC can be considered very expensive at the moment.
ORC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.57. ORC is valued rather expensively when compared to this.
ORC is valuated quite expensively with a Price/Forward Earnings ratio of 32.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.09. ORC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.33 | ||
| Fwd PE | 32.81 |
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 | 34.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORC has a very decent profitability rating, which may justify a higher PE ratio.
ORC's earnings are expected to grow with 23.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)4.81
EPS Next 2Y16.96%
EPS Next 3Y23.7%
5. Dividend
5.1 Amount
ORC has a yearly dividend return of 0.64%, which is pretty low.
ORC's Dividend Yield is a higher than the industry average which is at 2.80.
Compared to an average S&P500 Dividend Yield of 2.32, ORC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of ORC is nicely growing with an annual growth rate of 12.29%!
Dividend Growth(5Y)12.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
40.62% of the earnings are spent on dividend by ORC. This is a bit on the high side, but may be sustainable.
The dividend of ORC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.62%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
FRA:ORC (10/22/2025, 7:00:00 PM)
233.2
-7.65 (-3.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap664.80B
Revenue(TTM)59.02B
Net Income(TTM)12.44B
Analysts81.2
Price Target295.63 (26.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.46
Dividend Growth(5Y)12.29%
DP40.62%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-2.65%
Max EPS beat(2)1.38%
EPS beat(4)1
Avg EPS beat(4)-1.84%
Min EPS beat(4)-3.45%
Max EPS beat(4)1.38%
EPS beat(8)3
Avg EPS beat(8)-0.97%
EPS beat(12)6
Avg EPS beat(12)-0.19%
EPS beat(16)8
Avg EPS beat(16)0.18%
Revenue beat(2)1
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)1
Avg Revenue beat(12)-2.04%
Revenue beat(16)1
Avg Revenue beat(16)-1.83%
PT rev (1m)9.96%
PT rev (3m)56.42%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.33 | ||
| Fwd PE | 32.81 | ||
| P/S | 13.07 | ||
| P/FCF | N/A | ||
| P/OCF | 35.83 | ||
| P/B | 31.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.89 |
EPS(TTM)5.26
EY2.26%
EPS(NY)7.11
Fwd EY3.05%
FCF(TTM)-1.78
FCFYN/A
OCF(TTM)6.51
OCFY2.79%
SpS17.84
BVpS7.3
TBVpS-12.76
PEG (NY)2.93
PEG (5Y)4.81
Graham Number29.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 51.51% | ||
| ROCE | 13.24% | ||
| ROIC | 9.32% | ||
| ROICexc | 10.11% | ||
| ROICexgc | 20.73% | ||
| OM | 31.53% | ||
| PM (TTM) | 21.08% | ||
| GM | 69.66% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.39%
ROIC(5y)10.19%
ROICexc(3y)10.33%
ROICexc(5y)13.16%
ROICexgc(3y)30.92%
ROICexgc(5y)44.24%
ROCE(3y)13.34%
ROCE(5y)14.48%
ROICexgc growth 3Y-23.67%
ROICexgc growth 5Y-30%
ROICexc growth 3Y-14.81%
ROICexc growth 5Y-10.94%
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%
F-Score4
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 420.65% | ||
| Cap/Sales | 46.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.52 |
F-Score4
WACC10.58%
ROIC/WACC0.88
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)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
EPS Next Y15.15%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
EPS Next 5Y27%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year17.5%
Revenue Next 2Y19.83%
Revenue Next 3Y27.65%
Revenue Next 5Y28.24%
EBIT growth 1Y11.4%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year47.34%
EBIT Next 3Y37.75%
EBIT Next 5Y37.03%
FCF growth 1Y-162.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.35%
OCF growth 3Y29.72%
OCF growth 5Y9.64%