ORACLE CORP (ORC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ORC - US68389X1054 - Common Stock
148.67 EUR
-2.67 (-1.76%)
Taking everything into account, ORC scores 5 out of 10 in our fundamental rating. ORC was compared to 114 industry peers in the Software industry. While ORC is still in line with the averages on profitability rating, there are concerns on its financial health. ORC is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year ORC was profitable.
- In the past year ORC had a positive cash flow from operations.
- Each year in the past 5 years ORC has been profitable.
- ORC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ORC has a Return On Assets of 7.52%. This is in the better half of the industry: ORC outperforms 60.53% of its industry peers.
- The Return On Equity of ORC (51.50%) is better than 90.35% of its industry peers.
- The Return On Invested Capital of ORC (8.17%) is better than 61.40% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ORC is below the industry average of 13.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 51.5% | ||
| ROIC | 8.17% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)9.37%
ROIC(5y)10.18%
1.3 Margins
- ORC's Profit Margin of 25.28% is amongst the best of the industry. ORC outperforms 83.33% of its industry peers.
- ORC's Profit Margin has declined in the last couple of years.
- The Operating Margin of ORC (31.81%) is better than 90.35% of its industry peers.
- In the last couple of years the Operating Margin of ORC has declined.
- ORC's Gross Margin of 68.54% is in line compared to the rest of the industry. ORC outperforms 42.11% of its industry peers.
- In the last couple of years the Gross Margin of ORC 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ORC is destroying value.
- The number of shares outstanding for ORC has been increased compared to 1 year ago.
- ORC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ORC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.26 indicates that ORC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ORC has a Altman-Z score of 2.26. This is comparable to the rest of the industry: ORC outperforms 44.74% of its industry peers.
- ORC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 3.49, ORC is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.78
WACC10.46%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that ORC may have some problems paying its short term obligations.
- ORC's Current ratio of 0.91 is on the low side compared to the rest of the industry. ORC is outperformed by 78.07% of its industry peers.
- ORC has a Quick Ratio of 0.91. 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 Quick ratio of 0.91. This is in the lower half of the industry: ORC underperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- ORC 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.
- ORC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
- The Revenue has been growing slightly by 8.00% on average over the past years.
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, ORC will show a very strong growth in Earnings Per Share. The EPS will grow by 28.20% on average per year.
- Based on estimates for the next years, ORC 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
- ORC is valuated quite expensively with a Price/Earnings ratio of 25.28.
- ORC's Price/Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 71.93% of the companies in the same industry.
- ORC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- ORC is valuated rather expensively with a Price/Forward Earnings ratio of 21.58.
- ORC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 71.93% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ORC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 21.58 |
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 | 22.58 |
4.3 Compensation for Growth
- ORC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ORC has a very decent profitability rating, which may justify a higher PE ratio.
- ORC's earnings are expected to grow with 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)2.74
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- ORC has a Yearly Dividend Yield of 1.12%.
- In the last 3 months the price of ORC has falen by -38.29%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- ORC's Dividend Yield is rather good when compared to the industry average which is at 0.68. ORC pays more dividend than 82.46% of the companies in the same industry.
- ORC'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
- 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 34.81% 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.
DP34.81%
EPS Next 2Y15.82%
EPS Next 3Y21.74%
ORACLE CORP / ORC.DE FAQ
Can you provide the ChartMill fundamental rating for ORACLE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to ORC.DE.
What is the valuation status of ORACLE CORP (ORC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ORACLE CORP (ORC.DE). This can be considered as Fairly Valued.
How profitable is ORACLE CORP (ORC.DE) stock?
ORACLE CORP (ORC.DE) has a profitability rating of 6 / 10.
What is the valuation of ORACLE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ORACLE CORP (ORC.DE) is 25.28 and the Price/Book (PB) ratio is 16.62.
Can you provide the expected EPS growth for ORC stock?
The Earnings per Share (EPS) of ORACLE CORP (ORC.DE) is expected to grow by 24.78% in the next year.