ORACLE CORP (ORCL) Stock Fundamental Analysis
USA - NYSE:ORCL - US68389X1054 - Common Stock
248.17 USD
-9.68 (-3.75%)
245.05 USD
-3.12 (-1.26%)
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 284 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
ORCL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 6.89%, ORCL is in the better half of the industry, outperforming 76.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 51.51%, ORCL belongs to the top of the industry, outperforming 96.13% of the companies in the same industry.
The Return On Invested Capital of ORCL (11.72%) is better than 88.73% of its industry peers.
ORCL had an Average Return On Invested Capital over the past 3 years of 11.80%. This is in line with the industry average of 11.83%.
| 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
With an excellent Profit Margin value of 21.08%, ORCL belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
ORCL's Profit Margin has declined in the last couple of years.
ORCL's Operating Margin of 31.53% is amongst the best of the industry. ORCL outperforms 93.66% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
With a Gross Margin value of 69.66%, ORCL perfoms like the industry average, outperforming 52.11% 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.
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 3.28 indicates that ORCL is not in any danger for bankruptcy at the moment.
The Altman-Z score of ORCL (3.28) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.40 is on the high side and indicates that ORCL has dependencies on debt financing.
ORCL has a worse Debt to Equity ratio (3.40) than 82.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.28 |
ROIC/WACC1.08
WACC10.89%
2.3 Liquidity
ORCL has a Current Ratio of 0.62. 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 (0.62) than 87.68% of its industry peers.
ORCL has a Quick Ratio of 0.62. 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's Quick ratio of 0.62 is on the low side compared to the rest of the industry. ORCL is outperformed by 87.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
ORCL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.89%.
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 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
The Earnings Per Share is expected to grow by 27.00% on average over the next years. This is a very strong growth
Based on estimates for the next years, ORCL will show a very strong growth in Revenue. The Revenue will grow by 28.24% on average per year.
EPS Next Y15.26%
EPS Next 2Y16.38%
EPS Next 3Y23.06%
EPS Next 5Y27%
Revenue Next Year17.47%
Revenue Next 2Y20.83%
Revenue Next 3Y29.71%
Revenue Next 5Y28.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 40.62, which means the current valuation is very expensive for ORCL.
ORCL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. ORCL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 30.39, the valuation of ORCL can be described as expensive.
60.92% of the companies in the same industry are more expensive than ORCL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, ORCL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than 72.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.43 |
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 23.06% in the coming years.
PEG (NY)2.66
PEG (5Y)4.41
EPS Next 2Y16.38%
EPS Next 3Y23.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, ORCL is not a good candidate for dividend investing.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 36.32. ORCL pays more dividend than 91.55% of the companies 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 | 0.78% |
5.2 History
On average, the dividend of ORCL grows each year by 12.29%, which is quite nice.
ORCL has been paying a dividend for at least 10 years, so it has 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 2Y16.38%
EPS Next 3Y23.06%
248.17
-9.68 (-3.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change-0.52%
Ins Owners0.15%
Ins Owner Change1.08%
Market Cap707.48B
Revenue(TTM)59.02B
Net Income(TTM)12.44B
Analysts81.2
Price Target356.43 (43.62%)
Short Float %1.15%
Short Ratio0.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)7.75%
PT rev (3m)51.98%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 30.39 | ||
| P/S | 11.99 | ||
| P/FCF | N/A | ||
| P/OCF | 32.85 | ||
| P/B | 29.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.43 |
EPS(TTM)6.11
EY2.46%
EPS(NY)8.17
Fwd EY3.29%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)7.55
OCFY3.04%
SpS20.7
BVpS8.47
TBVpS-14.81
PEG (NY)2.66
PEG (5Y)4.41
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 | 3.28 |
F-Score4
WACC10.89%
ROIC/WACC1.08
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 3Y23.06%
EPS Next 5Y27%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%12.17%
Revenue Next Year17.47%
Revenue Next 2Y20.83%
Revenue Next 3Y29.71%
Revenue Next 5Y28.24%
EBIT growth 1Y11.4%
EBIT growth 3Y4.29%
EBIT growth 5Y4.8%
EBIT Next Year47.34%
EBIT Next 3Y37.75%
EBIT Next 5Y37.03%
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 2 / 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 40.62 and the Price/Book (PB) ratio is 29.29.
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.