ORACLE CORP (ORCL)
US68389X1054 - Common Stock
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 276 industry peers in the Software industry. While ORCL has a great profitability rating, there are quite some concerns on its financial health. ORCL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ORCL had positive earnings in the past year.
ORCL had a positive operating cash flow in the past year.
Each year in the past 5 years ORCL has been profitable.
Each year in the past 5 years ORCL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.76%, ORCL belongs to the top of the industry, outperforming 86.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 189.28%, ORCL belongs to the top of the industry, outperforming 99.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.51%, ORCL belongs to the top of the industry, outperforming 92.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ORCL is above the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 189.28% | ||
| ROIC | 12.51% |
ROA(3y)7.65%
ROA(5y)8.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.5%
ROIC(5y)13.54%
1.3 Margins
ORCL has a Profit Margin of 20.27%. This is amongst the best in the industry. ORCL outperforms 90.51% of its industry peers.
In the last couple of years the Profit Margin of ORCL has grown nicely.
ORCL has a Operating Margin of 29.54%. This is amongst the best in the industry. ORCL outperforms 96.35% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
ORCL has a Gross Margin of 71.53%. This is in the better half of the industry: ORCL outperforms 61.68% of its industry peers.
In the last couple of years the Gross Margin of ORCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.54% | ||
| PM (TTM) | 20.27% | ||
| GM | 71.53% |
OM growth 3Y-8.8%
OM growth 5Y-4.82%
PM growth 3Y-13.1%
PM growth 5Y13.32%
GM growth 3Y-2.94%
GM growth 5Y-1.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORCL is still creating some value.
ORCL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORCL has less shares outstanding
ORCL has a better debt/assets ratio than last year.
2.2 Solvency
ORCL has an Altman-Z score of 1.92. This is not the best score and indicates that ORCL is in the grey zone with still only limited risk for bankruptcy at the moment.
ORCL has a Altman-Z score (1.92) which is in line with its industry peers.
The Debt to FCF ratio of ORCL is 7.18, which is on the high side as it means it would take ORCL, 7.18 years of fcf income to pay off all of its debts.
ORCL has a Debt to FCF ratio (7.18) which is in line with its industry peers.
ORCL has a Debt/Equity ratio of 14.67. This is a high value indicating a heavy dependency on external financing.
ORCL has a Debt to Equity ratio of 14.67. This is amonst the worse of the industry: ORCL underperforms 86.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.29
WACC9.67%
2.3 Liquidity
A Current Ratio of 0.85 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Current ratio of 0.85 is on the low side compared to the rest of the industry. ORCL is outperformed by 82.85% of its industry peers.
A Quick Ratio of 0.85 indicates that ORCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, ORCL is not doing good in the industry: 81.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.20% over the past year.
Measured over the past years, ORCL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.32% on average per year.
The Revenue has grown by 9.49% in the past year. This is quite good.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.87% yearly.
EPS 1Y (TTM)12.2%
EPS 3Y9.76%
EPS 5Y10.32%
EPS growth Q2Q15.57%
Revenue 1Y (TTM)9.49%
Revenue growth 3Y8.54%
Revenue growth 5Y4.87%
Revenue growth Q2Q7.11%
3.2 Future
ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.95% yearly.
Based on estimates for the next years, ORCL will show a quite strong growth in Revenue. The Revenue will grow by 9.16% on average per year.
EPS Next Y11.1%
EPS Next 2Y11.29%
EPS Next 3Y12.07%
EPS Next 5Y9.95%
Revenue Next Year6.87%
Revenue Next 2Y7.62%
Revenue Next 3Y8.46%
Revenue Next 5Y9.16%
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 stable.
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
Based on the Price/Earnings ratio of 20.48, the valuation of ORCL can be described as rather expensive.
Based on the Price/Earnings ratio, ORCL is valued cheaply inside the industry as 84.67% of the companies are valued more expensively.
ORCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 18.08, ORCL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL indicates a rather cheap valuation: ORCL is cheaper than 85.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
85.77% of the companies in the same industry are more expensive than ORCL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ORCL is valued cheaply inside the industry as 81.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.76 | ||
| EV/EBITDA | 18.2 |
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 excellent profitability rating of ORCL may justify a higher PE ratio.
ORCL's earnings are expected to grow with 12.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)1.99
EPS Next 2Y11.29%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
ORCL has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 11.63, ORCL pays a better dividend. On top of this ORCL pays more dividend than 92.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.06%!
ORCL has been paying a dividend for at least 10 years, so it has a reliable track record.
ORCL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.06%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ORCL pays out 41.07% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ORCL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.07%
EPS Next 2Y11.29%
EPS Next 3Y12.07%
ORACLE CORP
NYSE:ORCL (4/25/2024, 7:09:32 PM)
After market: 116.4 +1.51 (+1.31%)114.89
-0.45 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap315.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 18.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.84
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 189.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.54% | ||
| PM (TTM) | 20.27% | ||
| GM | 71.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.2%
EPS 3Y9.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.49%
Revenue growth 3Y8.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y