ORACLE CORP (ORCL) Stock Fundamental Analysis
NYSE:ORCL - US68389X1054 - Common Stock
233.16 USD
-1.9 (-0.81%)
233.5 USD
+0.34 (+0.15%)
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 283 industry peers in the Software industry. ORCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ORCL is quite expensive at the moment. It does show a decent growth rate. Finally 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.
ORCL had positive earnings in each of the past 5 years.
Each year in the past 5 years ORCL had a positive operating cash flow.
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.
With an excellent Return On Equity value of 60.84%, ORCL belongs to the best of the industry, outperforming 97.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.77%, ORCL belongs to the top of the industry, outperforming 89.40% of the companies in the same industry.
ORCL had an Average Return On Invested Capital over the past 3 years of 11.91%. This is in line with the industry average of 11.99%.
| 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 87.63% of the companies in the same industry.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL has a Operating Margin of 31.45%. This is amongst the best in the industry. ORCL outperforms 93.99% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
ORCL has a Gross Margin of 70.51%. This is comparable to the rest of the industry: ORCL outperforms 55.12% of its industry peers.
In the last couple of years the Gross Margin of ORCL has declined.
| 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.
The number of shares outstanding for ORCL has been increased compared to 1 year ago.
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 3.17 indicates that ORCL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.17, ORCL is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
ORCL has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
ORCL has a Debt to Equity ratio of 4.17. This is amonst the worse of the industry: ORCL underperforms 84.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC1.06
WACC11.08%
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 82.33% 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.
Looking at the Quick ratio, with a value of 0.75, ORCL is doing worse than 82.33% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 8.00% on average over the past years.
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
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
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 3Y19.17%
EPS Next 5Y19.67%
Revenue Next Year17.04%
Revenue Next 2Y18.36%
Revenue Next 3Y18.68%
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.
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 38.67 indicates a quite expensive valuation of ORCL.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (26.76), we can say ORCL is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.71, which means the current valuation is very expensive for ORCL.
ORCL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.91. ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.67 | ||
| Fwd PE | 33.71 |
4.2 Price Multiples
72.44% 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 | 30.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ORCL may justify a higher PE ratio.
ORCL's earnings are expected to grow with 19.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)4.19
EPS Next 2Y17.8%
EPS Next 3Y19.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, ORCL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 48.80, ORCL pays a better dividend. On top of this ORCL pays more dividend than 92.58% of the companies listed in the same industry.
With a Dividend Yield of 0.82, ORCL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.29%!
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
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 3Y19.17%
233.16
-1.9 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.74%
Inst Owner Change-0.1%
Ins Owners0.15%
Ins Owner Change1.08%
Market Cap654.91B
Analysts79.57
Price Target241.64 (3.64%)
Short Float %1.26%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.67 | ||
| Fwd PE | 33.71 | ||
| P/S | 11.41 | ||
| P/FCF | N/A | ||
| P/OCF | 31.45 | ||
| P/B | 32.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.37 |
EPS(TTM)6.03
EY2.59%
EPS(NY)6.92
Fwd EY2.97%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)7.41
OCFY3.18%
SpS20.44
BVpS7.28
TBVpS-16.5
PEG (NY)2.63
PEG (5Y)4.19
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 | 3.17 |
F-Score6
WACC11.08%
ROIC/WACC1.06
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 3Y19.17%
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 3Y18.68%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year42.32%
EBIT Next 3Y27.93%
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%