ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
BIT:1ORCL - Euronext Milan - US68389X1054 - Common Stock - Currency: EUR
Overall 1ORCL gets a fundamental rating of 5 out of 10. We evaluated 1ORCL against 101 industry peers in the Software industry. While 1ORCL is still in line with the averages on profitability rating, there are concerns on its financial health. 1ORCL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1ORCL had positive earnings in the past year.
1ORCL had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 7.83%, 1ORCL is doing good in the industry, outperforming 75.76% of the companies in the same industry.
With an excellent Return On Equity value of 84.57%, 1ORCL belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
1ORCL has a Return On Invested Capital of 10.86%. This is in the better half of the industry: 1ORCL outperforms 78.79% 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 11.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 84.57% | ||
| ROIC | 10.86% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.17%
ROIC(5y)11.09%
1.3 Margins
1ORCL has a better Profit Margin (21.16%) than 85.86% of its industry peers.
1ORCL's Profit Margin has declined in the last couple of years.
1ORCL's Operating Margin of 31.47% is amongst the best of the industry. 1ORCL outperforms 94.95% of its industry peers.
1ORCL's Operating Margin has declined in the last couple of years.
The Gross Margin of 1ORCL (71.27%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1ORCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.47% | ||
| PM (TTM) | 21.16% | ||
| GM | 71.27% |
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
1ORCL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1ORCL has more shares outstanding than it did 1 year ago.
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 2.39. 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 (2.39) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1ORCL is 9.29, which is on the high side as it means it would take 1ORCL, 9.29 years of fcf income to pay off all of its debts.
1ORCL has a Debt to FCF ratio (9.29) which is in line with its industry peers.
A Debt/Equity ratio of 5.85 is on the high side and indicates that 1ORCL has dependencies on debt financing.
1ORCL has a Debt to Equity ratio of 5.85. This is amonst the worse of the industry: 1ORCL underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.85 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.82
WACC13.31%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1ORCL may have some problems paying its short term obligations.
1ORCL's Current ratio of 0.81 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 75.76% of its industry peers.
A Quick Ratio of 0.81 indicates that 1ORCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, 1ORCL is not doing good in the industry: 73.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
1ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
1ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
Looking at the last year, 1ORCL shows a small growth in Revenue. The Revenue has grown by 6.40% in the last year.
Measured over the past years, 1ORCL shows a small growth in Revenue. The Revenue has been growing by 6.04% on average per year.
EPS 1Y (TTM)8.86%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%9.7%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%8.64%
3.2 Future
The Earnings Per Share is expected to grow by 16.36% 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 13.24% on average per year.
EPS Next Y12.52%
EPS Next 2Y13.35%
EPS Next 3Y14.32%
EPS Next 5Y16.36%
Revenue Next Year8.35%
Revenue Next 2Y10.46%
Revenue Next 3Y11.89%
Revenue Next 5Y13.24%
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
The Price/Earnings ratio is 25.32, which means the current valuation is very expensive for 1ORCL.
Based on the Price/Earnings ratio, 1ORCL is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. 1ORCL is around the same levels.
A Price/Forward Earnings ratio of 20.86 indicates a rather expensive valuation of 1ORCL.
74.75% of the companies in the same industry are more expensive than 1ORCL, based on the Price/Forward Earnings ratio.
1ORCL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 20.86 |
4.2 Price Multiples
1ORCL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1ORCL is valued a bit cheaper than 65.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.76 | ||
| EV/EBITDA | 21.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1ORCL has a very decent profitability rating, which may justify a higher PE ratio.
1ORCL's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)2.67
EPS Next 2Y13.35%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
1ORCL has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
1ORCL's Dividend Yield is rather good when compared to the industry average which is at 2.92. 1ORCL pays more dividend than 85.86% of the companies in the same industry.
With a Dividend Yield of 1.06, 1ORCL pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of 1ORCL is nicely growing with an annual growth rate of 15.04%!
Dividend Growth(5Y)15.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ORCL pays out 38.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1ORCL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP38.04%
EPS Next 2Y13.35%
EPS Next 3Y14.32%
BIT:1ORCL (3/7/2025, 7:00:00 PM)
137.5
-9.7 (-6.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.86%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap384.58B
Analysts77.33
Price Target189.65 (37.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.48
Dividend Growth(5Y)15.04%
DP38.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-2.65%
Max EPS beat(2)2.86%
EPS beat(4)2
Avg EPS beat(4)-0.57%
Min EPS beat(4)-2.98%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)0.22%
EPS beat(12)6
Avg EPS beat(12)0.08%
EPS beat(16)10
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)0
Avg Revenue beat(16)-1.72%
PT rev (1m)-4.07%
PT rev (3m)11.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.68%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 20.86 | ||
| P/S | 7.6 | ||
| P/FCF | 43.76 | ||
| P/OCF | 20.58 | ||
| P/B | 30.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.2 |
EPS(TTM)5.43
EY3.95%
EPS(NY)6.59
Fwd EY4.79%
FCF(TTM)3.14
FCFY2.29%
OCF(TTM)6.68
OCFY4.86%
SpS18.09
BVpS4.53
TBVpS-17.83
PEG (NY)2.02
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 84.57% | ||
| ROCE | 14.47% | ||
| ROIC | 10.86% | ||
| ROICexc | 11.99% | ||
| ROICexgc | 32.22% | ||
| OM | 31.47% | ||
| PM (TTM) | 21.16% | ||
| GM | 71.27% | ||
| FCFM | 17.37% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.17%
ROIC(5y)11.09%
ROICexc(3y)13.3%
ROICexc(5y)15.76%
ROICexgc(3y)42.91%
ROICexgc(5y)70.38%
ROCE(3y)14.9%
ROCE(5y)14.78%
ROICexcg growth 3Y-21.61%
ROICexcg growth 5Y-34.19%
ROICexc growth 3Y-14.61%
ROICexc growth 5Y-9.52%
OM growth 3Y-8.01%
OM growth 5Y-3.09%
PM growth 3Y-16.51%
PM growth 5Y-6.77%
GM growth 3Y-3.95%
GM growth 5Y-2.19%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.85 | ||
| Debt/FCF | 9.29 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 177.96% | ||
| Cap/Sales | 19.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.98% | ||
| Profit Quality | 82.08% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.39 |
F-Score7
WACC13.31%
ROIC/WACC0.82
Cap/Depr(3y)132.9%
Cap/Depr(5y)104.92%
Cap/Sales(3y)13.67%
Cap/Sales(5y)10.06%
Profit Quality(3y)95.76%
Profit Quality(5y)100.3%
High Growth Momentum
Growth
EPS 1Y (TTM)8.86%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%9.7%
EPS Next Y12.52%
EPS Next 2Y13.35%
EPS Next 3Y14.32%
EPS Next 5Y16.36%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%8.64%
Revenue Next Year8.35%
Revenue Next 2Y10.46%
Revenue Next 3Y11.89%
Revenue Next 5Y13.24%
EBIT growth 1Y16.07%
EBIT growth 3Y0.61%
EBIT growth 5Y2.77%
EBIT Next Year32.39%
EBIT Next 3Y20.83%
EBIT Next 5Y20.36%
FCF growth 1Y13.66%
FCF growth 3Y-4.96%
FCF growth 5Y-1.74%
OCF growth 1Y34.59%
OCF growth 3Y5.53%
OCF growth 5Y5.11%