ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
217.58 USD
+3.25 (+1.52%)
218.7 USD
+1.12 (+0.51%)
ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 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 expensively, but it does show have an excellent growth 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.
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
ORCL's Return On Assets of 6.89% is fine compared to the rest of the industry. ORCL outperforms 76.51% of its industry peers.
With an excellent Return On Equity value of 51.51%, ORCL belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
ORCL's Return On Invested Capital of 11.72% is amongst the best of the industry. ORCL outperforms 86.83% 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 12.03%.
| 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
ORCL's Profit Margin of 21.08% is amongst the best of the industry. ORCL outperforms 85.77% of its industry peers.
ORCL's Profit Margin has declined in the last couple of years.
ORCL has a Operating Margin of 31.53%. This is amongst the best in the industry. ORCL outperforms 93.24% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
Looking at the Gross Margin, with a value of 69.66%, ORCL is in line with its industry, outperforming 51.60% 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.
Compared to 1 year ago, ORCL has more shares outstanding
The number of shares outstanding for ORCL has been reduced compared to 5 years ago.
ORCL has a better debt/assets ratio than last year.
2.2 Solvency
ORCL has an Altman-Z score of 2.80. 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's Altman-Z score of 2.80 is in line compared to the rest of the industry. ORCL outperforms 57.30% of its industry peers.
ORCL has a Debt/Equity ratio of 3.40. This is a high value indicating a heavy dependency on external financing.
ORCL has a worse Debt to Equity ratio (3.40) than 84.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC1.1
WACC10.66%
2.3 Liquidity
ORCL has a Current 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 worse Current ratio (0.62) than 90.75% of its industry peers.
A Quick Ratio of 0.62 indicates that ORCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, ORCL is doing worse than 90.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.89% over the past year.
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 9.67% 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)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
ORCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.64% yearly.
The Revenue is expected to grow by 31.43% on average over the next years. This is a very strong growth
EPS Next Y15.26%
EPS Next 2Y16.38%
EPS Next 3Y23.04%
EPS Next 5Y28.64%
Revenue Next Year17.47%
Revenue Next 2Y20.87%
Revenue Next 3Y29.99%
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
The Price/Earnings ratio is 35.61, which means the current valuation is very expensive for ORCL.
The rest of the industry has a similar Price/Earnings ratio as ORCL.
ORCL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 26.64, which means the current valuation is very expensive for ORCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 62.99% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ORCL to the average of the S&P500 Index (36.10), we can say ORCL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.61 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
72.95% 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 | 27.49 |
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.
ORCL's earnings are expected to grow with 23.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)3.86
EPS Next 2Y16.38%
EPS Next 3Y23.04%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 59.20, ORCL pays a better dividend. On top of this ORCL pays more dividend than 91.46% of the companies listed in the same industry.
With a Dividend Yield of 0.98, ORCL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of ORCL grows each year by 12.29%, which is quite nice.
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
40.62% of the earnings are spent on dividend by ORCL. This is a bit on the high side, but may be sustainable.
The dividend of ORCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.62%
EPS Next 2Y16.38%
EPS Next 3Y23.04%
217.58
+3.25 (+1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change1.68%
Ins Owners0.15%
Ins Owner Change1.09%
Market Cap620.27B
Revenue(TTM)59.02B
Net Income(TTM)12.44B
Analysts80.77
Price Target356.7 (63.94%)
Short Float %1.45%
Short Ratio1.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)3.69%
PT rev (3m)40.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.61 | ||
| Fwd PE | 26.64 | ||
| P/S | 10.51 | ||
| P/FCF | N/A | ||
| P/OCF | 28.8 | ||
| P/B | 25.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.49 |
EPS(TTM)6.11
EY2.81%
EPS(NY)8.17
Fwd EY3.75%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)7.55
OCFY3.47%
SpS20.7
BVpS8.47
TBVpS-14.81
PEG (NY)2.33
PEG (5Y)3.86
Graham Number34.13
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%
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-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 | 2.8 |
F-Score4
WACC10.66%
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)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
EPS Next Y15.26%
EPS Next 2Y16.38%
EPS Next 3Y23.04%
EPS Next 5Y28.64%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year17.47%
Revenue Next 2Y20.87%
Revenue Next 3Y29.99%
Revenue Next 5Y31.43%
EBIT growth 1Y11.4%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year47.34%
EBIT Next 3Y38.07%
EBIT Next 5Y35.91%
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%
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 35.61 and the Price/Book (PB) ratio is 25.68.
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.