ORACLE CORP (ORCL) Stock Fundamental Analysis
NYSE:ORCL - New York Stock Exchange, Inc. - US68389X1054 - Common Stock - Currency: USD
Overall ORCL gets a fundamental rating of 5 out of 10. We evaluated ORCL against 283 industry peers in the Software industry. While ORCL belongs to the best of the industry regarding profitability, there are concerns on its financial health. ORCL has a correct valuation and a medium growth rate. Finally ORCL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ORCL had positive earnings in the past year.
In the past year ORCL had a positive cash flow from operations.
In the past 5 years ORCL has always been profitable.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORCL has a Return On Assets of 7.54%. This is amongst the best in the industry. ORCL outperforms 81.27% of its industry peers.
ORCL has a better Return On Equity (72.68%) than 97.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.27%, ORCL belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ORCL is in line with the industry average of 12.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 72.68% | ||
| ROIC | 12.27% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.58%
ROIC(5y)13.47%
1.3 Margins
ORCL has a Profit Margin of 21.80%. This is amongst the best in the industry. ORCL outperforms 88.69% of its industry peers.
ORCL's Profit Margin has declined in the last couple of years.
The Operating Margin of ORCL (31.80%) is better than 95.76% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
The Gross Margin of ORCL (71.12%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ORCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.8% | ||
| PM (TTM) | 21.8% | ||
| GM | 71.12% |
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
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 2.43. 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 (2.43) which is in line with its industry peers.
ORCL has a debt to FCF ratio of 16.57. This is a negative value and a sign of low solvency as ORCL would need 16.57 years to pay back of all of its debts.
ORCL has a Debt to FCF ratio (16.57) which is in line with its industry peers.
A Debt/Equity ratio of 5.27 is on the high side and indicates that ORCL has dependencies on debt financing.
ORCL has a Debt to Equity ratio of 5.27. This is amonst the worse of the industry: ORCL underperforms 84.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.14
WACC10.72%
2.3 Liquidity
ORCL has a Current Ratio of 1.02. This is a normal value and indicates that ORCL is financially healthy and should not expect problems in meeting its short term obligations.
ORCL's Current ratio of 1.02 is on the low side compared to the rest of the industry. ORCL is outperformed by 74.91% of its industry peers.
ORCL has a Quick Ratio of 1.02. This is a normal value and indicates that ORCL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.02, ORCL is doing worse than 74.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.24% over the past year.
The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.23% in the past year.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.04% yearly.
EPS 1Y (TTM)6.24%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%4.26%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%6.4%
3.2 Future
The Earnings Per Share is expected to grow by 19.08% on average over the next years. This is quite good.
ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.67% yearly.
EPS Next Y9.5%
EPS Next 2Y10.61%
EPS Next 3Y14.18%
EPS Next 5Y19.08%
Revenue Next Year7.2%
Revenue Next 2Y10.59%
Revenue Next 3Y13.09%
Revenue Next 5Y14.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 26.33, which means the current valuation is very expensive for ORCL.
70.67% of the companies in the same industry are more expensive than ORCL, based on the Price/Earnings ratio.
ORCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
ORCL is valuated rather expensively with a Price/Forward Earnings ratio of 23.02.
71.38% of the companies in the same industry are more expensive than ORCL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 23.02 |
4.2 Price Multiples
ORCL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ORCL is cheaper than 80.21% of the companies in the same industry.
ORCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.7 | ||
| EV/EBITDA | 22.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORCL does not grow enough to justify the current Price/Earnings ratio.
ORCL has a very decent profitability rating, which may justify a higher PE ratio.
ORCL's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.77
PEG (5Y)2.77
EPS Next 2Y10.61%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
ORCL has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 14.22, ORCL pays a better dividend. On top of this ORCL pays more dividend than 93.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 15.04%!
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)15.04%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ORCL pays out 36.53% 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.
DP36.53%
EPS Next 2Y10.61%
EPS Next 3Y14.18%
NYSE:ORCL (5/21/2025, 3:20:06 PM)
156.9
-3.41 (-2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.86%
Inst Owner Change0.44%
Ins Owners0.14%
Ins Owner Change0%
Market Cap439.98B
Analysts77.87
Price Target184.92 (17.86%)
Short Float %1.41%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.61
Dividend Growth(5Y)15.04%
DP36.53%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.05%
Min EPS beat(2)-3.45%
Max EPS beat(2)-2.65%
EPS beat(4)1
Avg EPS beat(4)-1.55%
Min EPS beat(4)-3.45%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-0.15%
EPS beat(12)6
Avg EPS beat(12)0.28%
EPS beat(16)9
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)0
Avg Revenue beat(16)-1.84%
PT rev (1m)-3.29%
PT rev (3m)-7.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 23.02 | ||
| P/S | 7.89 | ||
| P/FCF | 75.7 | ||
| P/OCF | 21.21 | ||
| P/B | 26.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.19 |
EPS(TTM)5.96
EY3.8%
EPS(NY)6.81
Fwd EY4.34%
FCF(TTM)2.07
FCFY1.32%
OCF(TTM)7.4
OCFY4.71%
SpS19.89
BVpS5.97
TBVpS-18.03
PEG (NY)2.77
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 72.68% | ||
| ROCE | 13.46% | ||
| ROIC | 12.27% | ||
| ROICexc | 14.19% | ||
| ROICexgc | 34.68% | ||
| OM | 31.8% | ||
| PM (TTM) | 21.8% | ||
| GM | 71.12% | ||
| FCFM | 10.42% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.58%
ROIC(5y)13.47%
ROICexc(3y)16.17%
ROICexc(5y)19.16%
ROICexgc(3y)52.15%
ROICexgc(5y)85.55%
ROCE(3y)14.9%
ROCE(5y)14.78%
ROICexcg growth 3Y-21.61%
ROICexcg growth 5Y-34.19%
ROICexc growth 3Y-14.61%
ROICexc growth 5Y-9.52%
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.27 | ||
| Debt/FCF | 16.57 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 247.56% | ||
| Cap/Sales | 26.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.27% | ||
| Profit Quality | 47.8% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.43 |
F-Score6
WACC10.72%
ROIC/WACC1.14
Cap/Depr(3y)132.9%
Cap/Depr(5y)104.92%
Cap/Sales(3y)13.67%
Cap/Sales(5y)10.06%
Profit Quality(3y)95.76%
Profit Quality(5y)100.3%
High Growth Momentum
Growth
EPS 1Y (TTM)6.24%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%4.26%
EPS Next Y9.5%
EPS Next 2Y10.61%
EPS Next 3Y14.18%
EPS Next 5Y19.08%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%6.4%
Revenue Next Year7.2%
Revenue Next 2Y10.59%
Revenue Next 3Y13.09%
Revenue Next 5Y14.67%
EBIT growth 1Y14.36%
EBIT growth 3Y0.61%
EBIT growth 5Y2.77%
EBIT Next Year31.48%
EBIT Next 3Y21.44%
EBIT Next 5Y23.52%
FCF growth 1Y-20.36%
FCF growth 3Y-4.96%
FCF growth 5Y-1.74%
OCF growth 1Y33.81%
OCF growth 3Y5.53%
OCF growth 5Y5.11%