ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - NYSE:ORCL - US68389X1054 - Common Stock
309.98 USD
+1.32 (+0.43%)
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 279 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.
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.
In the past 5 years ORCL has always been profitable.
Each year in the past 5 years ORCL had a positive operating cash flow.
1.2 Ratios
ORCL's Return On Assets of 6.89% is fine compared to the rest of the industry. ORCL outperforms 76.34% of its industry peers.
The Return On Equity of ORCL (51.51%) is better than 96.06% of its industry peers.
The Return On Invested Capital of ORCL (11.72%) is better than 88.89% 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 11.86%.
| 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 86.38% of its industry peers.
ORCL's Profit Margin has declined in the last couple of years.
ORCL has a better Operating Margin (31.53%) than 93.91% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
ORCL has a Gross Margin (69.66%) 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 | 31.53% | ||
| 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
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.
Compared to 5 years ago, ORCL has less shares outstanding
ORCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.82 indicates that ORCL is not in any danger for bankruptcy at the moment.
ORCL's Altman-Z score of 3.82 is fine compared to the rest of the industry. ORCL outperforms 63.08% of its industry peers.
A Debt/Equity ratio of 3.40 is on the high side and indicates that ORCL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.40, ORCL is not doing good in the industry: 83.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.82 |
ROIC/WACC1.05
WACC11.19%
2.3 Liquidity
A Current Ratio of 0.62 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a worse Current ratio (0.62) than 87.10% 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 86.74% 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.
ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.22% yearly.
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 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 19.34% yearly.
EPS Next Y14.76%
EPS Next 2Y17.55%
EPS Next 3Y19.51%
EPS Next 5Y19.67%
Revenue Next Year17.33%
Revenue Next 2Y19.59%
Revenue Next 3Y26.1%
Revenue Next 5Y19.34%
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.
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
With a Price/Earnings ratio of 50.73, ORCL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ORCL.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (27.38), we can say ORCL is valued expensively.
With a Price/Forward Earnings ratio of 37.20, ORCL can be considered very expensive at the moment.
ORCL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ORCL to the average of the S&P500 Index (22.86), we can say ORCL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.73 | ||
| Fwd PE | 37.2 |
4.2 Price Multiples
69.53% 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 | 38.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORCL has a very decent profitability rating, which may justify a higher PE ratio.
ORCL's earnings are expected to grow with 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.44
PEG (5Y)5.5
EPS Next 2Y17.55%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, ORCL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 40.43, ORCL pays a better dividend. On top of this ORCL pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 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 40.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.62%
EPS Next 2Y17.55%
EPS Next 3Y19.51%
NYSE:ORCL (9/22/2025, 9:49:09 AM)
309.98
+1.32 (+0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.74%
Inst Owner Change-0.06%
Ins Owners0.15%
Ins Owner Change1.08%
Market Cap880.87B
Analysts79.15
Price Target330.8 (6.72%)
Short Float %1.28%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)36.9%
PT rev (3m)53.18%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)1.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.73 | ||
| Fwd PE | 37.2 | ||
| P/S | 14.93 | ||
| P/FCF | N/A | ||
| P/OCF | 40.91 | ||
| P/B | 36.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.09 |
EPS(TTM)6.11
EY1.97%
EPS(NY)8.33
Fwd EY2.69%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)7.58
OCFY2.44%
SpS20.77
BVpS8.5
TBVpS-14.86
PEG (NY)3.44
PEG (5Y)5.5
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%
ROICexcg growth 3Y-23.67%
ROICexcg 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 | 3.82 |
F-Score4
WACC11.19%
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)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
EPS Next Y14.76%
EPS Next 2Y17.55%
EPS Next 3Y19.51%
EPS Next 5Y19.67%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year17.33%
Revenue Next 2Y19.59%
Revenue Next 3Y26.1%
Revenue Next 5Y19.34%
EBIT growth 1Y11.4%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year42.32%
EBIT Next 3Y27.59%
EBIT Next 5Y25.19%
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%