ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1ORCL. 1ORCL was compared to 99 industry peers in the Software industry. There are concerns on the financial health of 1ORCL while its profitability can be described as average. 1ORCL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ORCL was profitable.
In the past year 1ORCL had a positive cash flow from operations.
Each year in the past 5 years 1ORCL has been profitable.
Each year in the past 5 years 1ORCL had a positive operating cash flow.
1.2 Ratios
1ORCL has a Return On Assets of 7.39%. This is in the better half of the industry: 1ORCL outperforms 74.75% of its industry peers.
1ORCL has a Return On Equity of 60.84%. This is amongst the best in the industry. 1ORCL outperforms 96.97% of its industry peers.
1ORCL's Return On Invested Capital of 11.77% is amongst the best of the industry. 1ORCL outperforms 84.85% 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 10.83%.
| 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
1ORCL's Profit Margin of 21.68% is amongst the best of the industry. 1ORCL outperforms 87.88% of its industry peers.
In the last couple of years the Profit Margin of 1ORCL has declined.
With an excellent Operating Margin value of 31.45%, 1ORCL belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
1ORCL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 70.51%, 1ORCL perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
1ORCL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1ORCL is creating some value.
1ORCL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ORCL has less shares outstanding
The debt/assets ratio for 1ORCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.20 indicates that 1ORCL is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1ORCL (3.20) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.17 is on the high side and indicates that 1ORCL has dependencies on debt financing.
1ORCL's Debt to Equity ratio of 4.17 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.2 |
ROIC/WACC1.12
WACC10.5%
2.3 Liquidity
A Current Ratio of 0.75 indicates that 1ORCL may have some problems paying its short term obligations.
1ORCL has a worse Current ratio (0.75) than 77.78% of its industry peers.
A Quick Ratio of 0.75 indicates that 1ORCL may have some problems paying its short term obligations.
1ORCL's Quick ratio of 0.75 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
1ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.26%, which is quite good.
Measured over the past years, 1ORCL 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.
1ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
Based on estimates for the next years, 1ORCL will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
EPS Next Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue Next Year17.03%
Revenue Next 2Y18.15%
Revenue Next 3Y17.96%
Revenue Next 5Y16.38%
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 38.70, 1ORCL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1ORCL is valued a bit cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, 1ORCL is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 33.75, the valuation of 1ORCL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ORCL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, 1ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ORCL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1ORCL may justify a higher PE ratio.
1ORCL's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)4.2
EPS Next 2Y17.8%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, 1ORCL is not a good candidate for dividend investing.
1ORCL's Dividend Yield is rather good when compared to the industry average which is at 2.06. 1ORCL pays more dividend than 81.82% of the companies in the same industry.
With a Dividend Yield of 0.85, 1ORCL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of 1ORCL is nicely growing with an annual growth rate of 12.29%!
Dividend Growth(5Y)12.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.12% of the earnings are spent on dividend by 1ORCL. This is a low number and sustainable payout ratio.
1ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.12%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
BIT:1ORCL (7/15/2025, 7:00:00 PM)
199.7
-0.5 (-0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.69%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap560.92B
Analysts78.7
Price Target189.14 (-5.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend1.46
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)18.5%
PT rev (3m)8.34%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)1.51%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)2.52%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.75 | ||
| P/S | 11.42 | ||
| P/FCF | N/A | ||
| P/OCF | 31.49 | ||
| P/B | 32.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.69 |
EPS(TTM)5.16
EY2.58%
EPS(NY)5.92
Fwd EY2.96%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)6.34
OCFY3.18%
SpS17.48
BVpS6.23
TBVpS-14.11
PEG (NY)2.63
PEG (5Y)4.2
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 | 3.2 |
F-Score6
WACC10.5%
ROIC/WACC1.12
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)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
EPS Next Y14.72%
EPS Next 2Y17.8%
EPS Next 3Y19.5%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year17.03%
Revenue Next 2Y18.15%
Revenue Next 3Y17.96%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year37.99%
EBIT Next 3Y27.05%
EBIT Next 5Y25.21%
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%