ORACLE CORP (ORC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ORC - US68389X1054 - Common Stock
151.34 EUR
-0.26 (-0.17%)
Taking everything into account, ORC scores 5 out of 10 in our fundamental rating. ORC was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- ORC had positive earnings in the past year.
- In the past year ORC had a positive cash flow from operations.
- ORC had positive earnings in each of the past 5 years.
- In the past 5 years ORC always reported a positive cash flow from operatings.
1.2 Ratios
- ORC's Return On Assets of 7.52% is fine compared to the rest of the industry. ORC outperforms 60.50% of its industry peers.
- ORC has a Return On Equity of 51.50%. This is amongst the best in the industry. ORC outperforms 90.76% of its industry peers.
- ORC's Return On Invested Capital of 8.17% is fine compared to the rest of the industry. ORC outperforms 62.18% of its industry peers.
- ORC had an Average Return On Invested Capital over the past 3 years of 9.37%. This 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's Profit Margin of 25.28% is amongst the best of the industry. ORC outperforms 83.19% of its industry peers.
- ORC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 31.81%, ORC belongs to the best of the industry, outperforming 90.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of ORC has declined.
- The Gross Margin of ORC (68.54%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ORC has declined.
| 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
- 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
- ORC has a better debt/assets ratio than last year.
2.2 Solvency
- ORC has an Altman-Z score of 2.26. 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 of 2.26. This is comparable to the rest of the industry: ORC outperforms 45.38% of its industry peers.
- ORC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
- ORC's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. ORC is outperformed by 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.78
WACC10.46%
2.3 Liquidity
- ORC has a Current Ratio of 0.91. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
- ORC has a Current ratio of 0.91. This is in the lower half of the industry: ORC underperforms 78.99% of its industry peers.
- A Quick Ratio of 0.91 indicates that ORC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.91, ORC is not doing good in the industry: 77.31% of the companies in the same industry are doing better.
| 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.
- The Revenue is expected to grow by 31.83% on average over the next years. This is a very strong growth
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
- A Price/Earnings ratio of 25.74 indicates a quite expensive valuation of ORC.
- ORC's Price/Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 70.59% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ORC is around the same levels.
- The Price/Forward Earnings ratio is 21.97, which indicates a rather expensive current valuation of ORC.
- Based on the Price/Forward Earnings ratio, ORC is valued a bit cheaper than 69.75% of the companies in the same industry.
- ORC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 21.97 |
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 | 22.58 |
4.3 Compensation for Growth
- ORC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ORC 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)1.04
PEG (5Y)2.79
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- ORC has a Yearly Dividend Yield of 1.12%.
- In the last 3 months the price of ORC has falen by -38.29%. 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 83.19% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, ORC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 34.81% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ORC is growing, but earnings are growing more, so the dividend growth is 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 25.74 and the Price/Book (PB) ratio is 16.91.
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.