ORACLE CORP (ORC.DE) Stock Fundamental Analysis
FRA:ORC - Deutsche Boerse Ag - US68389X1054 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ORC. ORC was compared to 101 industry peers in the Software industry. ORC has a medium profitability rating, but doesn't score so well on its financial health evaluation. ORC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ORC was profitable.
ORC had a positive operating cash flow in the past year.
ORC had positive earnings in each of the past 5 years.
Each year in the past 5 years ORC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ORC (7.39%) is better than 77.23% of its industry peers.
Looking at the Return On Equity, with a value of 60.84%, ORC belongs to the top of the industry, outperforming 98.02% of the companies in the same industry.
ORC's Return On Invested Capital of 9.36% is fine compared to the rest of the industry. ORC outperforms 73.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORC is in line with the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROIC | 9.36% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.47%
ROIC(5y)10.24%
1.3 Margins
Looking at the Profit Margin, with a value of 21.68%, ORC belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
In the last couple of years the Profit Margin of ORC has declined.
With an excellent Operating Margin value of 31.45%, ORC belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
In the last couple of years the Operating Margin of ORC has declined.
Looking at the Gross Margin, with a value of 70.51%, ORC is in line with its industry, outperforming 53.47% of the companies in the same industry.
ORC'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
ORC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ORC has been increased compared to 1 year ago.
The number of shares outstanding for ORC has been reduced compared to 5 years ago.
ORC has a better debt/assets ratio than last year.
2.2 Solvency
ORC has an Altman-Z score of 3.18. This indicates that ORC is financially healthy and has little risk of bankruptcy at the moment.
ORC has a Altman-Z score (3.18) which is comparable to the rest of the industry.
ORC has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
ORC has a worse Debt to Equity ratio (4.17) than 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.18 |
ROIC/WACC0.9
WACC10.38%
2.3 Liquidity
ORC has a Current Ratio of 0.75. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.75, ORC is doing worse than 81.19% of the companies in the same industry.
ORC has a Quick Ratio of 0.75. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
ORC has a worse Quick ratio (0.75) than 81.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.26% over the past year.
ORC 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, ORC shows a quite strong growth in Revenue. The Revenue has grown by 8.38% in the last year.
The Revenue has been growing slightly by 8.00% on average over the past years.
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, ORC will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
EPS Next Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
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.
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
A Price/Earnings ratio of 39.11 indicates a quite expensive valuation of ORC.
ORC's Price/Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 70.30% of the companies in the same industry.
ORC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 34.18 indicates a quite expensive valuation of ORC.
ORC's Price/Forward Earnings is on the same level as the industry average.
ORC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.11 | ||
| Fwd PE | 34.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ORC may justify a higher PE ratio.
ORC's earnings are expected to grow with 18.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)4.24
EPS Next 2Y17.64%
EPS Next 3Y18.82%
5. Dividend
5.1 Amount
ORC has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average industry Dividend Yield of 1.77, ORC pays a better dividend. On top of this ORC pays more dividend than 81.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ORC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of ORC is nicely growing with an annual growth rate of 12.29%!
Dividend Growth(5Y)12.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
ORC pays out 38.12% of its income as dividend. This is a sustainable payout ratio.
The dividend of ORC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.12%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
FRA:ORC (7/9/2025, 2:28:21 PM)
201.4
+1.35 (+0.67%)
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 Cap564.77B
Analysts78.7
Price Target188.99 (-6.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.45
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years6
Div Non Decr Years6
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)15.52%
PT rev (3m)7.97%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)1.33%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.11 | ||
| Fwd PE | 34.18 | ||
| P/S | 11.53 | ||
| P/FCF | N/A | ||
| P/OCF | 31.79 | ||
| P/B | 32.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.48 |
EPS(TTM)5.15
EY2.56%
EPS(NY)5.89
Fwd EY2.93%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)6.34
OCFY3.15%
SpS17.47
BVpS6.22
TBVpS-14.1
PEG (NY)2.69
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROCE | 13.3% | ||
| ROIC | 9.36% | ||
| ROICexc | 10.21% | ||
| ROICexgc | 22.02% | ||
| 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)9.47%
ROIC(5y)10.24%
ROICexc(3y)10.42%
ROICexc(5y)13.21%
ROICexgc(3y)31.2%
ROICexgc(5y)44.41%
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 | 3.18 |
F-Score6
WACC10.38%
ROIC/WACC0.9
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 Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
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%