ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - NYSE:ORCL - US68389X1054 - Common Stock
296.02 USD
-11.84 (-3.85%)
ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. There are concerns on the financial health of ORCL while its profitability can be described as average. 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.
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
ORCL has a better Return On Assets (7.39%) than 79.29% of its industry peers.
The Return On Equity of ORCL (60.84%) is better than 96.43% of its industry peers.
ORCL's Return On Invested Capital of 11.77% is amongst the best of the industry. ORCL outperforms 88.93% of its industry peers.
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 11.95%.
| 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
ORCL has a better Profit Margin (21.68%) than 87.14% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL has a better Operating Margin (31.45%) than 93.93% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
The Gross Margin of ORCL (70.51%) is comparable to the rest of the industry.
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.
ORCL has more shares outstanding than it did 1 year ago.
ORCL has less shares outstanding than it did 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 4.02 indicates that ORCL is not in any danger for bankruptcy at the moment.
ORCL's Altman-Z score of 4.02 is fine compared to the rest of the industry. ORCL outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that ORCL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.17, ORCL is doing worse than 84.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.02 |
ROIC/WACC1.07
WACC11.02%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Current ratio of 0.75. This is amonst the worse of the industry: ORCL underperforms 82.14% of its industry peers.
A Quick Ratio of 0.75 indicates that ORCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, ORCL is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.89% over the past year.
Measured over the past years, ORCL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
The Revenue has grown by 8.38% in the past year. This is quite good.
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)5.89%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%5.76%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
3.2 Future
Based on estimates for the next years, ORCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.67% on average per year.
The Revenue is expected to grow by 19.34% on average over the next years. This is quite good.
EPS Next Y14.76%
EPS Next 2Y17.55%
EPS Next 3Y19.51%
EPS Next 5Y19.67%
Revenue Next Year16.83%
Revenue Next 2Y18.22%
Revenue Next 3Y19.56%
Revenue Next 5Y19.34%
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
With a Price/Earnings ratio of 48.45, ORCL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ORCL.
ORCL is valuated expensively when we compare the Price/Earnings ratio to 27.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.53 indicates a quite expensive valuation of ORCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.87. ORCL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.45 | ||
| Fwd PE | 35.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 39.04 |
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 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)5.26
EPS Next 2Y17.55%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, ORCL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 59.94, ORCL pays a better dividend. On top of this ORCL pays more dividend than 91.07% of the companies listed in the same industry.
With a Dividend Yield of 0.61, ORCL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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 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
38.12% 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.
DP38.12%
EPS Next 2Y17.55%
EPS Next 3Y19.51%
NYSE:ORCL (9/12/2025, 2:40:09 PM)
296.02
-11.84 (-3.85%)
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 Cap831.47B
Analysts79.15
Price Target253.53 (-14.35%)
Short Float %1.36%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)8.1%
PT rev (3m)37.11%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.45 | ||
| Fwd PE | 35.53 | ||
| P/S | 14.49 | ||
| P/FCF | N/A | ||
| P/OCF | 39.93 | ||
| P/B | 40.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.04 |
EPS(TTM)6.11
EY2.06%
EPS(NY)8.33
Fwd EY2.81%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)7.41
OCFY2.5%
SpS20.44
BVpS7.28
TBVpS-16.5
PEG (NY)3.28
PEG (5Y)5.26
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 | 4.02 |
F-Score6
WACC11.02%
ROIC/WACC1.07
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)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year16.83%
Revenue Next 2Y18.22%
Revenue Next 3Y19.56%
Revenue Next 5Y19.34%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year42.32%
EBIT Next 3Y27.59%
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%