ORACLE CORP (1ORCL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ORCL - US68389X1054 - Common Stock
151.2 EUR
-0.7 (-0.46%)
1ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year 1ORCL was profitable.
- 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 7.52%, 1ORCL is doing good in the industry, outperforming 61.34% of the companies in the same industry.
- 1ORCL has a better Return On Equity (51.50%) than 91.60% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.28%, 1ORCL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- 1ORCL had an Average Return On Invested Capital over the past 3 years of 11.78%. This is in line with the industry average of 13.49%.
| 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 has a better Profit Margin (25.28%) than 84.03% of its industry peers.
- In the last couple of years the Profit Margin of 1ORCL has declined.
- Looking at the Operating Margin, with a value of 31.81%, 1ORCL belongs to the top of the industry, outperforming 91.60% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1ORCL has declined.
- The Gross Margin of 1ORCL (68.54%) 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 | 31.81% | ||
| 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
- 1ORCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1ORCL has more shares outstanding
- Compared to 5 years ago, 1ORCL has less shares outstanding
- 1ORCL has a better debt/assets ratio than last year.
2.2 Solvency
- 1ORCL has an Altman-Z score of 2.26. 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 2.26. This is comparable to the rest of the industry: 1ORCL outperforms 44.54% 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.
- 1ORCL's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. 1ORCL is outperformed by 89.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.95
WACC10.79%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that 1ORCL may have some problems paying its short term obligations.
- The Current ratio of 1ORCL (0.91) is worse than 78.15% of its industry peers.
- A Quick Ratio of 0.91 indicates that 1ORCL may have some problems paying its short term obligations.
- 1ORCL has a worse Quick ratio (0.91) than 76.47% of its industry peers.
| 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.
- 1ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.22% yearly.
- Looking at the last year, 1ORCL shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
- Measured over the past years, 1ORCL shows a small growth in Revenue. The Revenue has been growing by 8.00% on average per year.
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
- Based on estimates for the next years, 1ORCL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.20% on average per year.
- 1ORCL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.83% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 25.71, 1ORCL can be considered very expensive at the moment.
- 71.43% of the companies in the same industry are more expensive than 1ORCL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. 1ORCL is around the same levels.
- Based on the Price/Forward Earnings ratio of 21.95, the valuation of 1ORCL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ORCL indicates a somewhat cheap valuation: 1ORCL is cheaper than 70.59% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
- 1ORCL's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.57 |
4.3 Compensation for Growth
- 1ORCL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1ORCL may justify a higher PE ratio.
- A more expensive valuation may be justified as 1ORCL's earnings are expected to grow with 21.74% in the coming years.
PEG (NY)1.04
PEG (5Y)2.79
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.12%, 1ORCL has a reasonable but not impressive dividend return.
- The stock price of 1ORCL dropped by -38.11% 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 0.68, 1ORCL pays a better dividend. On top of this 1ORCL pays more dividend than 82.35% of the companies listed in the same industry.
- 1ORCL's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
- The dividend of 1ORCL is growing, but earnings are growing more, so the dividend growth is 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%.