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 282 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 is quite expensive at the moment. It does show a decent growth rate. 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.
In the past 5 years ORCL always reported a positive cash flow from operatings.
1.2 Ratios
ORCL has a better Return On Assets (7.39%) than 80.50% of its industry peers.
The Return On Equity of ORCL (60.84%) is better than 97.16% of its industry peers.
With an excellent Return On Invested Capital value of 11.77%, ORCL belongs to the best of the industry, outperforming 88.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ORCL is in line with the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROIC | 11.77% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
1.3 Margins
ORCL has a better Profit Margin (21.68%) than 89.72% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
The Operating Margin of ORCL (31.45%) is better than 95.39% 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 70.51%, ORCL is in line with its industry, outperforming 53.90% of the companies in the same industry.
ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% |
OM growth 3Y-5.53%
OM growth 5Y-2.86%
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
Compared to 5 years ago, ORCL has less shares outstanding
The debt/assets ratio for ORCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.18 indicates that ORCL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.18, ORCL is in line with its industry, outperforming 58.16% of the companies in the same industry.
A Debt/Equity ratio of 4.17 is on the high side and indicates that ORCL has dependencies on debt financing.
ORCL has a Debt to Equity ratio of 4.17. This is amonst the worse of the industry: ORCL underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.18 |
ROIC/WACC1.1
WACC10.71%
2.3 Liquidity
ORCL has a Current Ratio of 0.75. 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 (0.75) than 82.62% of its industry peers.
ORCL has a Quick Ratio of 0.75. 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 (0.75) than 82.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.26%, 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 8.38% in the past year. This is quite good.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
3.2 Future
ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.67% yearly.
ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.38% yearly.
EPS Next Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
Revenue Next 5Y16.38%
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
ORCL is valuated quite expensively with a Price/Earnings ratio of 38.24.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than 64.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (27.30), we can say ORCL is valued slightly more expensively.
A Price/Forward Earnings ratio of 33.39 indicates a quite expensive valuation of ORCL.
60.64% 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 rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 33.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than 75.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.54 |
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 18.82% in the coming years.
PEG (NY)2.63
PEG (5Y)4.15
EPS Next 2Y17.64%
EPS Next 3Y18.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, ORCL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 33.28, ORCL pays a better dividend. On top of this ORCL pays more dividend than 92.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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
ORCL pays out 38.12% 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.
DP38.12%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
230.56
-4.44 (-1.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.69%
Inst Owner Change-0.06%
Ins Owners0.15%
Ins Owner Change0%
Market Cap647.60B
Analysts78.7
Price Target215.96 (-6.33%)
Short Float %1.24%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend1.71
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.04%
Min EPS beat(2)-3.45%
Max EPS beat(2)1.38%
EPS beat(4)2
Avg EPS beat(4)-0.46%
Min EPS beat(4)-3.45%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-0.41%
EPS beat(12)6
Avg EPS beat(12)-0.45%
EPS beat(16)9
Avg EPS beat(16)0.61%
Revenue beat(2)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)1
Avg Revenue beat(16)-1.81%
PT rev (1m)16.79%
PT rev (3m)12.94%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)1.33%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 33.39 | ||
| P/S | 11.26 | ||
| P/FCF | N/A | ||
| P/OCF | 31.05 | ||
| P/B | 31.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.54 |
EPS(TTM)6.03
EY2.62%
EPS(NY)6.91
Fwd EY2.99%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)7.42
OCFY3.22%
SpS20.47
BVpS7.29
TBVpS-16.53
PEG (NY)2.63
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROCE | 13.3% | ||
| ROIC | 11.77% | ||
| ROICexc | 12.83% | ||
| ROICexgc | 27.68% | ||
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
ROICexc(3y)13.1%
ROICexc(5y)16.61%
ROICexgc(3y)39.23%
ROICexgc(5y)55.84%
ROCE(3y)13.45%
ROCE(5y)14.55%
ROICexcg growth 3Y-23.53%
ROICexcg growth 5Y-29.92%
ROICexc growth 3Y-14.65%
ROICexc growth 5Y-10.84%
OM growth 3Y-5.53%
OM growth 5Y-2.86%
PM growth 3Y11.06%
PM growth 5Y-3.53%
GM growth 3Y-3.75%
GM growth 5Y-2.42%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 343.62% | ||
| Cap/Sales | 36.96% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 85.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.18 |
F-Score6
WACC10.71%
ROIC/WACC1.1
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)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
EPS Next Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year37.99%
EBIT Next 3Y27.05%
EBIT Next 5Y25.21%
FCF growth 1Y-103.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.5%
OCF growth 3Y29.72%
OCF growth 5Y9.64%