ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - NYSE:ORCL - US68389X1054 - Common Stock
309.065 USD
+16.11 (+5.5%)
Overall ORCL gets a fundamental rating of 5 out of 10. We evaluated ORCL against 282 industry peers in the Software industry. While ORCL is still in line with the averages on profitability rating, there are concerns on its financial health. ORCL is valued quite expensive, but it does show an excellent growth.
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.
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 6.89%, ORCL is doing good in the industry, outperforming 76.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 51.51%, ORCL belongs to the top of the industry, outperforming 96.10% of the companies in the same industry.
The Return On Invested Capital of ORCL (11.72%) is better than 88.65% 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 11.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 51.51% | ||
| ROIC | 11.72% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.8%
ROIC(5y)12.82%
1.3 Margins
With an excellent Profit Margin value of 21.08%, ORCL belongs to the best of the industry, outperforming 86.17% of the companies in the same industry.
ORCL's Profit Margin has declined in the last couple of years.
ORCL's Operating Margin of 31.53% is amongst the best of the industry. ORCL outperforms 93.97% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.66%, ORCL is in line with its industry, outperforming 51.77% of the companies in the same industry.
ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.53% | ||
| PM (TTM) | 21.08% | ||
| GM | 69.66% |
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.
The number of shares outstanding for ORCL has been increased compared to 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 3.66. This indicates that ORCL is financially healthy and has little risk of bankruptcy at the moment.
ORCL has a Altman-Z score of 3.66. This is in the better half of the industry: ORCL outperforms 62.41% of its industry peers.
A Debt/Equity ratio of 3.40 is on the high side and indicates that ORCL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.40, ORCL is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.66 |
ROIC/WACC1.06
WACC11.07%
2.3 Liquidity
A Current Ratio of 0.62 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Current ratio of 0.62 is on the low side compared to the rest of the industry. ORCL is outperformed by 87.94% of its industry peers.
ORCL has a Quick Ratio of 0.62. 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 Quick ratio of 0.62. This is amonst the worse of the industry: ORCL underperforms 87.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
ORCL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.89%.
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 9.67%.
The Revenue has been growing slightly by 8.00% on average over the past years.
EPS 1Y (TTM)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
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 27.00% on average per year.
Based on estimates for the next years, ORCL will show a very strong growth in Revenue. The Revenue will grow by 28.24% on average per year.
EPS Next Y15.15%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
EPS Next 5Y27%
Revenue Next Year17.5%
Revenue Next 2Y19.83%
Revenue Next 3Y27.65%
Revenue Next 5Y28.24%
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
Based on the Price/Earnings ratio of 50.58, the valuation of ORCL can be described as expensive.
ORCL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (27.02), we can say ORCL is valued expensively.
With a Price/Forward Earnings ratio of 37.47, ORCL can be considered very expensive at the moment.
ORCL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, ORCL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 37.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.42 |
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.
A more expensive valuation may be justified as ORCL's earnings are expected to grow with 23.70% in the coming years.
PEG (NY)3.34
PEG (5Y)5.49
EPS Next 2Y16.96%
EPS Next 3Y23.7%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.67%, which is pretty low.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 30.34. ORCL pays more dividend than 90.78% of the companies in the same industry.
With a Dividend Yield of 0.67, ORCL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.29%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
40.62% of the earnings are spent on dividend by ORCL. This is a bit on the high side, but may be sustainable.
ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.62%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
NYSE:ORCL (10/13/2025, 3:08:07 PM)
309.065
+16.11 (+5.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change-0.21%
Ins Owners0.15%
Ins Owner Change1.09%
Market Cap881.08B
Analysts81.2
Price Target344.01 (11.31%)
Short Float %1.41%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.71
Dividend Growth(5Y)12.29%
DP40.62%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-2.65%
Max EPS beat(2)1.38%
EPS beat(4)1
Avg EPS beat(4)-1.84%
Min EPS beat(4)-3.45%
Max EPS beat(4)1.38%
EPS beat(8)3
Avg EPS beat(8)-0.97%
EPS beat(12)6
Avg EPS beat(12)-0.19%
EPS beat(16)8
Avg EPS beat(16)0.18%
Revenue beat(2)1
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)1
Avg Revenue beat(12)-2.04%
Revenue beat(16)1
Avg Revenue beat(16)-1.83%
PT rev (1m)35.69%
PT rev (3m)59.29%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 37.47 | ||
| P/S | 14.93 | ||
| P/FCF | N/A | ||
| P/OCF | 40.92 | ||
| P/B | 36.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.42 |
EPS(TTM)6.11
EY1.98%
EPS(NY)8.25
Fwd EY2.67%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)7.55
OCFY2.44%
SpS20.7
BVpS8.47
TBVpS-14.81
PEG (NY)3.34
PEG (5Y)5.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 51.51% | ||
| ROCE | 13.24% | ||
| ROIC | 11.72% | ||
| ROICexc | 12.71% | ||
| ROICexgc | 26.06% | ||
| OM | 31.53% | ||
| PM (TTM) | 21.08% | ||
| GM | 69.66% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.8%
ROIC(5y)12.82%
ROICexc(3y)12.98%
ROICexc(5y)16.54%
ROICexgc(3y)38.87%
ROICexgc(5y)55.63%
ROCE(3y)13.34%
ROCE(5y)14.48%
ROICexcg growth 3Y-23.67%
ROICexcg 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-Score4
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 420.65% | ||
| Cap/Sales | 46.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.66 |
F-Score4
WACC11.07%
ROIC/WACC1.06
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)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
EPS Next Y15.15%
EPS Next 2Y16.96%
EPS Next 3Y23.7%
EPS Next 5Y27%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year17.5%
Revenue Next 2Y19.83%
Revenue Next 3Y27.65%
Revenue Next 5Y28.24%
EBIT growth 1Y11.4%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year47.34%
EBIT Next 3Y37.75%
EBIT Next 5Y37.03%
FCF growth 1Y-162.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.35%
OCF growth 3Y29.72%
OCF growth 5Y9.64%