ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
195.67 USD
-2.71 (-1.37%)
We assign a fundamental rating of 5 out of 10 to ORCL. ORCL was compared to 278 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 valued quite expensive, but it does show an excellent growth. 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.
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 78.06% of the companies in the same industry.
The Return On Equity of ORCL (51.50%) is better than 96.76% of its industry peers.
ORCL's Return On Invested Capital of 10.28% is amongst the best of the industry. ORCL outperforms 84.89% of its industry peers.
ORCL had an Average Return On Invested Capital over the past 3 years of 11.78%. This 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
With an excellent Profit Margin value of 25.28%, ORCL belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
ORCL's Profit Margin has declined in the last couple of years.
The Operating Margin of ORCL (31.81%) is better than 93.88% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
ORCL has a Gross Margin (68.54%) which 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 | 31.81% | ||
| 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.
The number of shares outstanding for ORCL has been increased compared to 1 year ago.
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 2.46. 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.
Looking at the Altman-Z score, with a value of 2.46, ORCL is in line with its industry, outperforming 54.32% 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.
With a Debt to Equity ratio value of 3.49, ORCL is not doing good in the industry: 85.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.46 |
ROIC/WACC0.95
WACC10.79%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Current ratio of 0.91 is on the low side compared to the rest of the industry. ORCL is outperformed by 78.42% of its industry peers.
ORCL has a Quick 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 Quick ratio (0.91) than 78.06% 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.
Looking at the last year, ORCL shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
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
ORCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.64% yearly.
ORCL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.43% yearly.
EPS Next Y15.26%
EPS Next 2Y16.29%
EPS Next 3Y22.64%
EPS Next 5Y28.64%
Revenue Next Year17.46%
Revenue Next 2Y20.86%
Revenue Next 3Y29.82%
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.
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
A Price/Earnings ratio of 28.36 indicates a quite expensive valuation of ORCL.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than 65.11% of the companies in the same industry.
ORCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.99, ORCL is valued on the expensive side.
67.27% of the companies in the same industry are more expensive than ORCL, based on the Price/Forward Earnings ratio.
ORCL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.36 | ||
| Fwd PE | 23.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than the industry average as 74.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.81 |
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.
The decent profitability rating of ORCL may justify a higher PE ratio.
A more expensive valuation may be justified as ORCL's earnings are expected to grow with 22.64% in the coming years.
PEG (NY)1.86
PEG (5Y)3.08
EPS Next 2Y16.29%
EPS Next 3Y22.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, ORCL has a reasonable but not impressive dividend return.
In the last 3 months the price of ORCL has falen by -30.01%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 0.52. ORCL pays more dividend than 91.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
On average, the dividend of ORCL grows each year by 12.29%, which is quite nice.
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 2Y16.29%
EPS Next 3Y22.64%
NYSE:ORCL (12/23/2025, 9:49:10 AM)
195.67
-2.71 (-1.37%)
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 Change1.09%
Market Cap557.81B
Revenue(TTM)61.02B
Net Income(TTM)15.43B
Analysts80
Price Target343.56 (75.58%)
Short Float %1.5%
Short Ratio1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)-3.61%
PT rev (3m)3.85%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.36 | ||
| Fwd PE | 23.99 | ||
| P/S | 9.14 | ||
| P/FCF | N/A | ||
| P/OCF | 25.02 | ||
| P/B | 18.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.81 |
EPS(TTM)6.9
EY3.53%
EPS(NY)8.16
Fwd EY4.17%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)7.82
OCFY4%
SpS21.4
BVpS10.51
TBVpS-12.63
PEG (NY)1.86
PEG (5Y)3.08
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 | 2.46 |
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 Y15.26%
EPS Next 2Y16.29%
EPS Next 3Y22.64%
EPS Next 5Y28.64%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%14.22%
Revenue Next Year17.46%
Revenue Next 2Y20.86%
Revenue Next 3Y29.82%
Revenue Next 5Y31.43%
EBIT growth 1Y12.29%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year46.75%
EBIT Next 3Y39.06%
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 3 / 10 to ORACLE CORP (ORCL). This can be considered as Overvalued.
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 28.36 and the Price/Book (PB) ratio is 18.62.
What is the earnings growth outlook for ORACLE CORP?
The Earnings per Share (EPS) of ORACLE CORP (ORCL) is expected to grow by 15.26% in the next year.