ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
204.68 USD
+6.16 (+3.1%)
203.88 USD
-0.8 (-0.39%)
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. There are concerns on the financial health of ORCL while its profitability can be described as average. ORCL is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
ORCL had positive earnings in each of the past 5 years.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.52%, ORCL is doing good in the industry, outperforming 77.54% of the companies in the same industry.
ORCL's Return On Equity of 51.50% is amongst the best of the industry. ORCL outperforms 96.74% of its industry peers.
ORCL has a better Return On Invested Capital (10.28%) than 85.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
ORCL has a Profit Margin of 25.28%. This is amongst the best in the industry. ORCL outperforms 86.96% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL's Operating Margin of 31.81% is amongst the best of the industry. ORCL outperforms 93.84% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
The Gross Margin of ORCL (68.54%) is comparable to the rest of the industry.
ORCL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ORCL is creating some value.
Compared to 1 year ago, ORCL has more shares outstanding
ORCL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ORCL has been reduced compared to a year ago.
2.2 Solvency
ORCL has an Altman-Z score of 2.53. 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.
With a Altman-Z score value of 2.53, ORCL perfoms like the industry average, outperforming 55.80% of the companies in the same industry.
A Debt/Equity ratio of 3.49 is on the high side and indicates that ORCL has dependencies on debt 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 | 2.53 |
ROIC/WACC0.95
WACC10.79%
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.
ORCL has a worse Current ratio (0.91) than 78.62% of its industry peers.
A Quick Ratio of 0.91 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Quick ratio of 0.91 is on the low side compared to the rest of the industry. ORCL is outperformed by 78.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.95%, which is quite good.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
The Revenue has grown by 11.08% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 28.20% on average over the next years. This is a very strong growth
Based on estimates for the next years, ORCL will show a very strong growth in Revenue. The Revenue will grow by 31.83% on average per year.
EPS Next Y24.93%
EPS Next 2Y16.4%
EPS Next 3Y21.83%
EPS Next 5Y28.2%
Revenue Next Year17.41%
Revenue Next 2Y23.35%
Revenue Next 3Y31.59%
Revenue Next 5Y31.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 29.66, the valuation of ORCL can be described as expensive.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
ORCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
ORCL is valuated quite expensively with a Price/Forward Earnings ratio of 25.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 65.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
72.83% of the companies in the same industry are more expensive than ORCL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.48 |
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.
A more expensive valuation may be justified as ORCL's earnings are expected to grow with 21.83% in the coming years.
PEG (NY)1.19
PEG (5Y)3.22
EPS Next 2Y16.4%
EPS Next 3Y21.83%
5. Dividend
5.1 Amount
ORCL has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
The stock price of ORCL dropped by -29.74% 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 0.52. ORCL pays more dividend than 92.39% of the companies in the same industry.
With a Dividend Yield of 1.05, ORCL pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.29%!
ORCL has paid a dividend for at least 10 years, which is 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%
204.68
+6.16 (+3.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.8%
Inst Owner Change0.33%
Ins Owners0.16%
Ins Owner Change0.57%
Market Cap583.50B
Revenue(TTM)61.02B
Net Income(TTM)15.43B
Analysts79.61
Price Target301.79 (47.44%)
Short Float %1.7%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-12.16%
PT rev (3m)-12.27%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)8.4%
EPS NY rev (3m)8.5%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.05 | ||
| P/S | 9.56 | ||
| P/FCF | N/A | ||
| P/OCF | 26.17 | ||
| P/B | 19.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.48 |
EPS(TTM)6.9
EY3.37%
EPS(NY)8.17
Fwd EY3.99%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)7.82
OCFY3.82%
SpS21.4
BVpS10.51
TBVpS-12.63
PEG (NY)1.19
PEG (5Y)3.22
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 | 2.53 |
F-Score5
WACC10.79%
ROIC/WACC0.95
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 5Y28.2%
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 5Y31.83%
EBIT growth 1Y12.29%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year48.45%
EBIT Next 3Y41.07%
EBIT Next 5Y35.49%
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
What is the ChartMill fundamental rating of ORACLE CORP (ORCL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ORCL.
What is the valuation status of ORACLE CORP (ORCL) stock?
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 are the PE and PB ratios of ORACLE CORP (ORCL) stock?
The Price/Earnings (PE) ratio for ORACLE CORP (ORCL) is 29.66 and the Price/Book (PB) ratio is 19.48.
Can you provide the expected EPS growth for ORCL stock?
The Earnings per Share (EPS) of ORACLE CORP (ORCL) is expected to grow by 24.93% in the next year.