ORACLE CORP (ORC.DE) Stock Fundamental Analysis
FRA:ORC - US68389X1054 - Common Stock
194.64 EUR
+3.7 (+1.94%)
ORC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 108 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. While showing a medium growth rate, ORC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ORC had positive earnings in the past year.
ORC had a positive operating cash flow in the past year.
In the past 5 years ORC has always been profitable.
In the past 5 years ORC always reported a positive cash flow from operatings.
1.2 Ratios
ORC's Return On Assets of 7.39% is fine compared to the rest of the industry. ORC outperforms 71.30% of its industry peers.
The Return On Equity of ORC (60.84%) is better than 94.44% of its industry peers.
ORC has a Return On Invested Capital of 9.36%. This is in the better half of the industry: ORC outperforms 71.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORC is below the industry average of 12.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROIC | 9.36% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.47%
ROIC(5y)10.24%
1.3 Margins
ORC has a better Profit Margin (21.68%) than 81.48% 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 31.45%, ORC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
ORC's Operating Margin has declined in the last couple of years.
ORC has a Gross Margin of 70.51%. This is comparable to the rest of the industry: ORC outperforms 49.07% of its industry peers.
ORC'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
ORC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ORC has more shares outstanding than it did 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 3.04. This indicates that ORC is financially healthy and has little risk of bankruptcy at the moment.
ORC has a Altman-Z score (3.04) which is in line with its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that ORC has dependencies on debt financing.
The Debt to Equity ratio of ORC (4.17) is worse than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.04 |
ROIC/WACC0.87
WACC10.72%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ORC may have some problems paying its short term obligations.
ORC has a Current ratio of 0.75. This is in the lower half of the industry: ORC underperforms 77.78% of its industry peers.
A Quick Ratio of 0.75 indicates that ORC may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, ORC is not doing good in the industry: 76.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
ORC 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, ORC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
The Revenue has grown by 8.38% in the past year. This is quite good.
ORC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
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
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
ORC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.38% yearly.
EPS Next Y14.76%
EPS Next 2Y17.55%
EPS Next 3Y19.77%
EPS Next 5Y19.67%
Revenue Next Year16.83%
Revenue Next 2Y18.22%
Revenue Next 3Y17.66%
Revenue Next 5Y16.38%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.58, ORC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ORC is valued a bit cheaper than 68.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, ORC is valued a bit more expensive.
The Price/Forward Earnings ratio is 32.76, which means the current valuation is very expensive for ORC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORC is on the same level as its industry peers.
ORC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.58 | ||
| Fwd PE | 32.76 |
4.2 Price Multiples
ORC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ORC may justify a higher PE ratio.
ORC's earnings are expected to grow with 19.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.55
PEG (5Y)4.08
EPS Next 2Y17.55%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
ORC has a yearly dividend return of 0.83%, which is pretty low.
ORC's Dividend Yield is a higher than the industry average which is at 1.76.
With a Dividend Yield of 0.83, ORC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
ORC pays out 38.12% 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.
DP38.12%
EPS Next 2Y17.55%
EPS Next 3Y19.77%
FRA:ORC (9/5/2025, 5:18:25 PM)
194.64
+3.7 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.74%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap546.71B
Analysts79.57
Price Target215.2 (10.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.46
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years6
Div Non Decr Years6
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)8.19%
PT rev (3m)31.54%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.58 | ||
| Fwd PE | 32.76 | ||
| P/S | 11.09 | ||
| P/FCF | N/A | ||
| P/OCF | 30.58 | ||
| P/B | 31.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.13 |
EPS(TTM)5.18
EY2.66%
EPS(NY)5.94
Fwd EY3.05%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)6.36
OCFY3.27%
SpS17.55
BVpS6.25
TBVpS-14.17
PEG (NY)2.55
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROCE | 13.3% | ||
| ROIC | 9.36% | ||
| ROICexc | 10.21% | ||
| ROICexgc | 22.02% | ||
| 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)9.47%
ROIC(5y)10.24%
ROICexc(3y)10.42%
ROICexc(5y)13.21%
ROICexgc(3y)31.2%
ROICexgc(5y)44.41%
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 | 3.04 |
F-Score6
WACC10.72%
ROIC/WACC0.87
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 Y14.76%
EPS Next 2Y17.55%
EPS Next 3Y19.77%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year16.83%
Revenue Next 2Y18.22%
Revenue Next 3Y17.66%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year42.32%
EBIT Next 3Y27.93%
EBIT Next 5Y25.19%
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%