ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
197.21 USD
+1.83 (+0.94%)
196.329 USD
-0.88 (-0.45%)
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. ORCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ORCL is not overvalued while it is showing excellent growth. This is an interesting combination. Finally ORCL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ORCL was profitable.
In the past year ORCL had a positive cash flow from operations.
Each year in the past 5 years ORCL has been profitable.
In the past 5 years ORCL always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.52%, ORCL is doing good in the industry, outperforming 77.90% of the companies in the same industry.
ORCL has a Return On Equity of 51.50%. This is amongst the best in the industry. ORCL outperforms 96.74% of its industry peers.
ORCL's Return On Invested Capital of 10.28% is amongst the best of the industry. ORCL outperforms 85.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORCL is in line with the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROIC | 10.28% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.78%
ROIC(5y)12.8%
1.3 Margins
The Profit Margin of ORCL (25.28%) is better than 86.96% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL has a Operating Margin of 31.81%. This is amongst the best in the industry. ORCL outperforms 93.84% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 68.54%, ORCL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ORCL 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORCL is still creating some value.
Compared to 1 year ago, ORCL has more shares outstanding
ORCL has less shares outstanding than it did 5 years ago.
ORCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ORCL (2.44) is comparable to the rest of the industry.
ORCL has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
ORCL has a worse Debt to Equity ratio (3.49) than 85.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.44 |
ROIC/WACC0.96
WACC10.75%
2.3 Liquidity
ORCL has a Current Ratio of 0.91. This is a bad value and indicates that ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.91, ORCL is not doing good in the industry: 78.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.91 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Quick ratio of 0.91. This is in the lower half of the industry: ORCL underperforms 78.62% 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.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
ORCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
The Revenue has been growing slightly by 8.00% on average over the past years.
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
Based on estimates for the next years, ORCL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.64% on average per year.
ORCL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.43% yearly.
EPS Next Y24.93%
EPS Next 2Y16.4%
EPS Next 3Y21.83%
EPS Next 5Y28.64%
Revenue Next Year17.41%
Revenue Next 2Y23.35%
Revenue Next 3Y31.59%
Revenue Next 5Y31.43%
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
The Price/Earnings ratio is 28.58, which means the current valuation is very expensive for ORCL.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than the industry average as 66.30% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (26.77), we can say ORCL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.14, the valuation of ORCL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ORCL is valued a bit cheaper than the industry average as 67.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 24.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 74.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ORCL has a very decent profitability rating, which may justify a higher PE ratio.
ORCL's earnings are expected to grow with 21.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)3.1
EPS Next 2Y16.4%
EPS Next 3Y21.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, ORCL has a reasonable but not impressive dividend return.
The stock price of ORCL dropped by -31.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 0.51. ORCL pays more dividend than 92.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.29%!
ORCL has been paying a dividend for at least 10 years, so it has a reliable track record.
ORCL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.29%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ORCL pays out 34.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of ORCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.81%
EPS Next 2Y16.4%
EPS Next 3Y21.83%
197.21
+1.83 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners45.2%
Inst Owner Change1.73%
Ins Owners0.16%
Ins Owner Change1.08%
Market Cap562.20B
Revenue(TTM)61.02B
Net Income(TTM)15.43B
Analysts80
Price Target301.79 (53.03%)
Short Float %1.7%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.71
Dividend Growth(5Y)12.29%
DP34.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.3%
Min EPS beat(2)-2.65%
Max EPS beat(2)35.24%
EPS beat(4)2
Avg EPS beat(4)7.63%
Min EPS beat(4)-3.45%
Max EPS beat(4)35.24%
EPS beat(8)4
Avg EPS beat(8)3.53%
EPS beat(12)6
Avg EPS beat(12)2.69%
EPS beat(16)8
Avg EPS beat(16)1.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.36%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)1
Avg Revenue beat(16)-1.98%
PT rev (1m)-15.39%
PT rev (3m)-8.77%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)8.39%
EPS NY rev (3m)8.5%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 24.14 | ||
| P/S | 9.21 | ||
| P/FCF | N/A | ||
| P/OCF | 25.22 | ||
| P/B | 18.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.48 |
EPS(TTM)6.9
EY3.5%
EPS(NY)8.17
Fwd EY4.14%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)7.82
OCFY3.97%
SpS21.4
BVpS10.51
TBVpS-12.63
PEG (NY)1.15
PEG (5Y)3.1
Graham Number40.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROCE | 11.61% | ||
| ROIC | 10.28% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 21.09% | ||
| OM | 31.81% | ||
| PM (TTM) | 25.28% | ||
| GM | 68.54% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.78%
ROIC(5y)12.8%
ROICexc(3y)12.95%
ROICexc(5y)16.53%
ROICexgc(3y)38.77%
ROICexgc(5y)55.56%
ROCE(3y)13.31%
ROCE(5y)14.46%
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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 497.71% | ||
| Cap/Sales | 58.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.44 |
F-Score5
WACC10.75%
ROIC/WACC0.96
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)16.95%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%53.74%
EPS Next Y24.93%
EPS Next 2Y16.4%
EPS Next 3Y21.83%
EPS Next 5Y28.64%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%14.22%
Revenue Next Year17.41%
Revenue Next 2Y23.35%
Revenue Next 3Y31.59%
Revenue Next 5Y31.43%
EBIT growth 1Y12.29%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year48.45%
EBIT Next 3Y41.07%
EBIT Next 5Y35.91%
FCF growth 1Y-230.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.85%
OCF growth 3Y29.72%
OCF growth 5Y9.64%
ORACLE CORP / ORCL FAQ
Can you provide the ChartMill fundamental rating for ORACLE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to ORCL.
Can you provide the valuation status for ORACLE CORP?
ChartMill assigns a valuation rating of 4 / 10 to ORACLE CORP (ORCL). This can be considered as Fairly Valued.
What is the profitability of ORCL stock?
ORACLE CORP (ORCL) 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 (ORCL) is 28.58 and the Price/Book (PB) ratio is 18.77.
What is the earnings growth outlook for ORACLE CORP?
The Earnings per Share (EPS) of ORACLE CORP (ORCL) is expected to grow by 24.93% in the next year.