ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1ORCL • US68389X1054
140.62 EUR
+3.18 (+2.31%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, 1ORCL scores 5 out of 10 in our fundamental rating. 1ORCL was compared to 115 industry peers in the Software industry. 1ORCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1ORCL is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- 1ORCL had positive earnings in the past year.
- In the past year 1ORCL had a positive cash flow from operations.
- 1ORCL had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1ORCL had a positive operating cash flow.
1.2 Ratios
- 1ORCL has a better Return On Assets (7.52%) than 62.61% of its industry peers.
- Looking at the Return On Equity, with a value of 51.50%, 1ORCL belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
- 1ORCL has a Return On Invested Capital of 10.28%. This is in the better half of the industry: 1ORCL outperforms 72.17% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1ORCL is in line with the industry average of 13.06%.
| 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
- 1ORCL's Profit Margin of 25.28% is amongst the best of the industry. 1ORCL outperforms 83.48% of its industry peers.
- 1ORCL's Profit Margin has declined in the last couple of years.
- 1ORCL has a Operating Margin of 31.81%. This is amongst the best in the industry. 1ORCL outperforms 91.30% of its industry peers.
- In the last couple of years the Operating Margin of 1ORCL has declined.
- Looking at the Gross Margin, with a value of 68.54%, 1ORCL is in line with its industry, outperforming 43.48% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1ORCL has declined.
| 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), 1ORCL is creating some value.
- Compared to 1 year ago, 1ORCL has more shares outstanding
- The number of shares outstanding for 1ORCL has been reduced compared to 5 years ago.
- 1ORCL has a better debt/assets ratio than last year.
2.2 Solvency
- 1ORCL has an Altman-Z score of 2.16. This is not the best score and indicates that 1ORCL is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1ORCL has a Altman-Z score of 2.16. This is comparable to the rest of the industry: 1ORCL outperforms 43.48% of its industry peers.
- A Debt/Equity ratio of 3.49 is on the high side and indicates that 1ORCL has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.49, 1ORCL is not doing good in the industry: 87.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC0.95
WACC10.8%
2.3 Liquidity
- 1ORCL has a Current Ratio of 0.91. This is a bad value and indicates that 1ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1ORCL has a Current ratio of 0.91. This is in the lower half of the industry: 1ORCL underperforms 77.39% of its industry peers.
- 1ORCL has a Quick Ratio of 0.91. This is a bad value and indicates that 1ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.91, 1ORCL is not doing good in the industry: 75.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- 1ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.95%, which is quite good.
- The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
- Looking at the last year, 1ORCL shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
- 1ORCL 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
- 1ORCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.20% yearly.
- Based on estimates for the next years, 1ORCL will show a very strong growth in Revenue. The Revenue will grow by 31.83% on average per year.
EPS Next Y24.78%
EPS Next 2Y15.82%
EPS Next 3Y21.74%
EPS Next 5Y28.2%
Revenue Next Year17.39%
Revenue Next 2Y23.23%
Revenue Next 3Y31.52%
Revenue Next 5Y31.83%
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
- With a Price/Earnings ratio of 24.29, 1ORCL is valued on the expensive side.
- Based on the Price/Earnings ratio, 1ORCL is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of 1ORCL to the average of the S&P500 Index (28.32), we can say 1ORCL is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 20.72, the valuation of 1ORCL can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, 1ORCL is valued a bit cheaper than 73.04% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1ORCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ORCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.5 |
4.3 Compensation for Growth
- 1ORCL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of 1ORCL may justify a higher PE ratio.
- 1ORCL's earnings are expected to grow with 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)2.63
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- 1ORCL has a Yearly Dividend Yield of 1.18%.
- The stock price of 1ORCL dropped by -37.31% 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 0.64, 1ORCL pays a better dividend. On top of this 1ORCL pays more dividend than 81.74% of the companies listed in the same industry.
- 1ORCL's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
- On average, the dividend of 1ORCL grows each year by 12.29%, which is quite nice.
Dividend Growth(5Y)12.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1ORCL pays out 34.81% of its income as dividend. This is a sustainable payout ratio.
- 1ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.81%
EPS Next 2Y15.82%
EPS Next 3Y21.74%
ORACLE CORP / 1ORCL.MI FAQ
What is the ChartMill fundamental rating of ORACLE CORP (1ORCL.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1ORCL.MI.
What is the valuation status of ORACLE CORP (1ORCL.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to ORACLE CORP (1ORCL.MI). This can be considered as Fairly Valued.
How profitable is ORACLE CORP (1ORCL.MI) stock?
ORACLE CORP (1ORCL.MI) has a profitability rating of 6 / 10.
How financially healthy is ORACLE CORP?
The financial health rating of ORACLE CORP (1ORCL.MI) is 2 / 10.
Can you provide the dividend sustainability for 1ORCL stock?
The dividend rating of ORACLE CORP (1ORCL.MI) is 6 / 10 and the dividend payout ratio is 34.81%.