ORACLE CORP (ORCL) Stock Fundamental Analysis
NYSE:ORCL - New York Stock Exchange, Inc. - US68389X1054 - Common Stock - Currency: USD
ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ORCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, ORCL is valued expensive at the moment. ORCL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ORCL was profitable.
ORCL had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 7.39%, ORCL is doing good in the industry, outperforming 79.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 60.84%, ORCL belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.77%, ORCL belongs to the best 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 12.25%.
| 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
Looking at the Profit Margin, with a value of 21.68%, ORCL belongs to the top of the industry, outperforming 87.99% of the companies in the same industry.
In the last couple of years the Profit Margin of ORCL has declined.
With an excellent Operating Margin value of 31.45%, ORCL belongs to the best of the industry, outperforming 93.99% of the companies in the same industry.
In the last couple of years the Operating Margin of ORCL has declined.
ORCL has a Gross Margin (70.51%) which is comparable to the rest of the 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
ORCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ORCL has more shares outstanding than it did 1 year ago.
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 3.40. This indicates that ORCL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ORCL (3.40) is better than 62.54% of its industry peers.
ORCL has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ORCL (4.17) is worse than 84.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.4 |
ROIC/WACC1.05
WACC11.24%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ORCL may have some problems paying its short term obligations.
With a Current ratio value of 0.75, ORCL is not doing good in the industry: 82.33% of the companies in the same industry are doing better.
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's Quick ratio of 0.75 is on the low side compared to the rest of the industry. ORCL is outperformed by 82.33% 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.
ORCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.38%.
Measured over the past years, ORCL shows a small growth in Revenue. The Revenue has been growing by 8.00% on average per year.
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.
The Revenue is expected to grow by 16.38% on average over the next years. This is quite good.
EPS Next Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue Next Year17.04%
Revenue Next 2Y18.36%
Revenue Next 3Y17.93%
Revenue Next 5Y16.38%
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 40.49, which means the current valuation is very expensive for ORCL.
ORCL's Price/Earnings is on the same level as the industry average.
ORCL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.73.
Based on the Price/Forward Earnings ratio of 35.30, the valuation of ORCL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ORCL.
When comparing the Price/Forward Earnings ratio of ORCL to the average of the S&P500 Index (34.61), we can say ORCL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 35.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than 71.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.77 |
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 19.50% in the coming years.
PEG (NY)2.75
PEG (5Y)4.39
EPS Next 2Y17.8%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.80%, which is pretty low.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 37.37. ORCL pays more dividend than 92.58% of the companies in the same industry.
With a Dividend Yield of 0.80, ORCL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 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 2Y17.8%
EPS Next 3Y19.5%
244.18
-9.68 (-3.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.74%
Inst Owner Change0.08%
Ins Owners0.15%
Ins Owner Change1.08%
Market Cap685.86B
Analysts79.57
Price Target241.64 (-1.04%)
Short Float %1.26%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)11.89%
PT rev (3m)30.67%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 35.3 | ||
| P/S | 11.95 | ||
| P/FCF | N/A | ||
| P/OCF | 32.94 | ||
| P/B | 33.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.77 |
EPS(TTM)6.03
EY2.47%
EPS(NY)6.92
Fwd EY2.83%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)7.41
OCFY3.04%
SpS20.44
BVpS7.28
TBVpS-16.5
PEG (NY)2.75
PEG (5Y)4.39
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 | 3.4 |
F-Score6
WACC11.24%
ROIC/WACC1.05
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 Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year17.04%
Revenue Next 2Y18.36%
Revenue Next 3Y17.93%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year42.32%
EBIT Next 3Y27.86%
EBIT Next 5Y25.19%
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%