ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
204.96 USD
+7.93 (+4.02%)
200.6 USD
-4.36 (-2.13%)
We assign a fundamental rating of 5 out of 10 to ORCL. ORCL was compared to 280 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 expensively, but it does show have an excellent growth rating.
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.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORCL has a better Return On Assets (6.89%) than 76.79% of its industry peers.
The Return On Equity of ORCL (51.51%) is better than 96.79% of its industry peers.
ORCL has a Return On Invested Capital of 11.72%. This is amongst the best in the industry. ORCL outperforms 86.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORCL is in line with the industry average of 11.98%.
| 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
The Profit Margin of ORCL (21.08%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
The Operating Margin of ORCL (31.53%) is better than 93.21% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 69.66%, ORCL perfoms like the industry average, outperforming 51.43% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORCL is still 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.
The debt/assets ratio for ORCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
ORCL has a Altman-Z score of 2.61. This is comparable to the rest of the industry: ORCL outperforms 56.43% 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.
Looking at the Debt to Equity ratio, with a value of 3.40, ORCL is doing worse than 84.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.61 |
ROIC/WACC1.09
WACC10.77%
2.3 Liquidity
A Current Ratio of 0.62 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Current ratio of 0.62. This is amonst the worse of the industry: ORCL underperforms 90.71% of its industry peers.
A Quick Ratio of 0.62 indicates that ORCL may have some problems paying its short term obligations.
The Quick ratio of ORCL (0.62) is worse than 90.71% of its industry peers.
| 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.
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
ORCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.66% yearly.
Based on estimates for the next years, ORCL will show a very strong growth in Revenue. The Revenue will grow by 31.42% on average per year.
EPS Next Y15.26%
EPS Next 2Y16.38%
EPS Next 3Y23.07%
EPS Next 5Y28.66%
Revenue Next Year17.47%
Revenue Next 2Y20.87%
Revenue Next 3Y29.53%
Revenue Next 5Y31.42%
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 33.55 indicates a quite expensive valuation of ORCL.
Compared to the rest of the industry, the Price/Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 60.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ORCL is valued a bit more expensive.
The Price/Forward Earnings ratio is 25.09, which means the current valuation is very expensive for ORCL.
Based on the Price/Forward Earnings ratio, ORCL is valued a bit cheaper than 66.43% of the companies in the same industry.
ORCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.55 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than 73.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.53 |
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 23.07% in the coming years.
PEG (NY)2.2
PEG (5Y)3.64
EPS Next 2Y16.38%
EPS Next 3Y23.07%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.95%, which is pretty low.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 51.64. ORCL pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.95, ORCL pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 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.
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 3Y23.07%
204.96
+7.93 (+4.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change1.69%
Ins Owners0.15%
Ins Owner Change1.09%
Market Cap584.30B
Revenue(TTM)59.02B
Net Income(TTM)12.44B
Analysts80.77
Price Target356.7 (74.03%)
Short Float %1.22%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-0.04%
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 | 33.55 | ||
| Fwd PE | 25.09 | ||
| P/S | 9.9 | ||
| P/FCF | N/A | ||
| P/OCF | 27.13 | ||
| P/B | 24.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.53 |
EPS(TTM)6.11
EY2.98%
EPS(NY)8.17
Fwd EY3.98%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)7.55
OCFY3.69%
SpS20.7
BVpS8.47
TBVpS-14.81
PEG (NY)2.2
PEG (5Y)3.64
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 | 2.61 |
F-Score4
WACC10.77%
ROIC/WACC1.09
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 3Y23.07%
EPS Next 5Y28.66%
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 3Y29.53%
Revenue Next 5Y31.42%
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 33.55 and the Price/Book (PB) ratio is 24.19.
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.