ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORCL - US68389X1054 - Common Stock
197.99 USD
+0.5 (+0.25%)
196.9 USD
-1.09 (-0.55%)
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 278 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 valued quite expensive, but it does show an excellent growth. Finally ORCL also has an excellent dividend 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.
Each year in the past 5 years ORCL has been profitable.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORCL has a Return On Assets of 7.52%. This is in the better half of the industry: ORCL outperforms 78.06% of its industry peers.
With an excellent Return On Equity value of 51.50%, ORCL belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
ORCL has a Return On Invested Capital of 10.28%. This is amongst the best in the industry. ORCL outperforms 84.89% 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 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROIC | 10.28% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.78%
ROIC(5y)12.8%
1.3 Margins
The Profit Margin of ORCL (25.28%) is better than 87.77% of its industry peers.
ORCL's Profit Margin has declined in the last couple of years.
ORCL has a Operating Margin of 31.81%. This is amongst the best in the industry. ORCL outperforms 93.88% 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 68.54%, ORCL is in line with its industry, outperforming 50.00% of the companies in the same industry.
ORCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 25.28% | ||
| GM | 68.54% |
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.
Compared to 1 year ago, ORCL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
ORCL's Altman-Z score of 2.46 is in line compared to the rest of the industry. ORCL outperforms 54.32% of its industry peers.
A Debt/Equity ratio of 3.49 is on the high side and indicates that ORCL has dependencies on debt financing.
ORCL's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. ORCL is outperformed by 85.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.46 |
ROIC/WACC0.96
WACC10.76%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Current ratio of 0.91. This is in the lower half of the industry: ORCL underperforms 78.42% of its industry peers.
A Quick Ratio of 0.91 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Quick ratio of 0.91. This is in the lower half of the industry: ORCL underperforms 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.95% 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.
ORCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
EPS 1Y (TTM)16.95%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%53.74%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%14.22%
3.2 Future
Based on estimates for the next years, ORCL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.64% on average per year.
ORCL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.43% yearly.
EPS Next Y15.26%
EPS Next 2Y16.29%
EPS Next 3Y22.64%
EPS Next 5Y28.64%
Revenue Next Year17.46%
Revenue Next 2Y20.86%
Revenue Next 3Y29.82%
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.
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 28.69, ORCL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than 65.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (26.57), we can say ORCL is valued inline with the index average.
The Price/Forward Earnings ratio is 24.28, which indicates a rather expensive current valuation of ORCL.
Based on the Price/Forward Earnings ratio, ORCL is valued a bit cheaper than 67.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 24.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than the industry average as 74.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.71 |
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 22.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)3.11
EPS Next 2Y16.29%
EPS Next 3Y22.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, ORCL has a reasonable but not impressive dividend return.
The stock price of ORCL dropped by -30.15% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.51, ORCL pays a better dividend. On top of this ORCL pays more dividend than 91.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of ORCL is nicely growing with an annual growth rate of 12.29%!
ORCL has been paying a dividend for at least 10 years, so it has 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
34.81% of the earnings are spent on dividend by ORCL. This is a low number and sustainable payout ratio.
ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.81%
EPS Next 2Y16.29%
EPS Next 3Y22.64%
197.99
+0.5 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners45.2%
Inst Owner Change1.73%
Ins Owners0.16%
Ins Owner Change1.09%
Market Cap564.43B
Revenue(TTM)61.02B
Net Income(TTM)15.43B
Analysts80
Price Target301.79 (52.43%)
Short Float %1.5%
Short Ratio1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.71
Dividend Growth(5Y)12.29%
DP34.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.3%
Min EPS beat(2)-2.65%
Max EPS beat(2)35.24%
EPS beat(4)2
Avg EPS beat(4)7.63%
Min EPS beat(4)-3.45%
Max EPS beat(4)35.24%
EPS beat(8)4
Avg EPS beat(8)3.53%
EPS beat(12)6
Avg EPS beat(12)2.69%
EPS beat(16)8
Avg EPS beat(16)1.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.36%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)1
Avg Revenue beat(16)-1.98%
PT rev (1m)-3.61%
PT rev (3m)3.85%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 24.28 | ||
| P/S | 9.25 | ||
| P/FCF | N/A | ||
| P/OCF | 25.32 | ||
| P/B | 18.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.71 |
EPS(TTM)6.9
EY3.49%
EPS(NY)8.16
Fwd EY4.12%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)7.82
OCFY3.95%
SpS21.4
BVpS10.51
TBVpS-12.63
PEG (NY)1.88
PEG (5Y)3.11
Graham Number40.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROCE | 11.61% | ||
| ROIC | 10.28% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 21.09% | ||
| OM | 31.81% | ||
| PM (TTM) | 25.28% | ||
| GM | 68.54% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.78%
ROIC(5y)12.8%
ROICexc(3y)12.95%
ROICexc(5y)16.53%
ROICexgc(3y)38.77%
ROICexgc(5y)55.56%
ROCE(3y)13.31%
ROCE(5y)14.46%
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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 497.71% | ||
| Cap/Sales | 58.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.46 |
F-Score5
WACC10.76%
ROIC/WACC0.96
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)16.95%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%53.74%
EPS Next Y15.26%
EPS Next 2Y16.29%
EPS Next 3Y22.64%
EPS Next 5Y28.64%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%14.22%
Revenue Next Year17.46%
Revenue Next 2Y20.86%
Revenue Next 3Y29.82%
Revenue Next 5Y31.43%
EBIT growth 1Y12.29%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year46.75%
EBIT Next 3Y39.06%
EBIT Next 5Y35.91%
FCF growth 1Y-230.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.85%
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 28.69 and the Price/Book (PB) ratio is 18.85.
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.