ORACLE CORP (ORC.DE) Stock Fundamental Analysis
FRA:ORC - Deutsche Boerse Ag - US68389X1054 - Common Stock - Currency: EUR
Taking everything into account, ORC scores 5 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
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 7.83%. This is in the better half of the industry: ORC outperforms 74.75% of its industry peers.
With an excellent Return On Equity value of 84.57%, ORC belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
ORC's Return On Invested Capital of 10.19% is fine compared to the rest of the industry. ORC outperforms 76.77% of its industry peers.
ORC had an Average Return On Invested Capital over the past 3 years of 10.49%. This is in line with the industry average of 11.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 84.57% | ||
| ROIC | 10.19% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.49%
ROIC(5y)10.41%
1.3 Margins
ORC has a better Profit Margin (21.16%) than 84.85% of its industry peers.
In the last couple of years the Profit Margin of ORC has declined.
ORC's Operating Margin of 31.47% is amongst the best of the industry. ORC outperforms 93.94% of its industry peers.
ORC's Operating Margin has declined in the last couple of years.
ORC has a Gross Margin (71.27%) which is in line with its industry peers.
ORC's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ORC is destroying value.
ORC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ORC has been reduced compared to 5 years ago.
The debt/assets ratio for ORC has been reduced compared to a year ago.
2.2 Solvency
ORC has an Altman-Z score of 2.39. This is not the best score and indicates that ORC is in the grey zone with still only limited risk for bankruptcy at the moment.
ORC has a Altman-Z score (2.39) which is in line with its industry peers.
The Debt to FCF ratio of ORC is 9.29, which is on the high side as it means it would take ORC, 9.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ORC (9.29) is comparable to the rest of the industry.
A Debt/Equity ratio of 5.85 is on the high side and indicates that ORC has dependencies on debt financing.
With a Debt to Equity ratio value of 5.85, ORC is not doing good in the industry: 82.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.85 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.84
WACC12.08%
2.3 Liquidity
A Current Ratio of 0.81 indicates that ORC may have some problems paying its short term obligations.
With a Current ratio value of 0.81, ORC is not doing good in the industry: 76.77% of the companies in the same industry are doing better.
ORC has a Quick Ratio of 0.81. This is a bad value and indicates that ORC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, ORC is not doing good in the industry: 74.75% 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
ORC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
Measured over the past years, ORC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.49% on average per year.
Looking at the last year, ORC shows a small growth in Revenue. The Revenue has grown by 6.40% in the last year.
ORC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.04% yearly.
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, ORC 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
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
ORC is valuated quite expensively with a Price/Earnings ratio of 25.34.
ORC's Price/Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORC to the average of the S&P500 Index (29.35), we can say ORC is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.88, ORC is valued on the expensive side.
73.74% of the companies in the same industry are more expensive than ORC, based on the Price/Forward Earnings ratio.
ORC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 20.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ORC.
Based on the Price/Free Cash Flow ratio, ORC is valued a bit cheaper than the industry average as 64.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.8 | ||
| EV/EBITDA | 21.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ORC's earnings are expected to grow with 14.32% in the coming years.
PEG (NY)2.02
PEG (5Y)2.67
EPS Next 2Y13.35%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
ORC has a Yearly Dividend Yield of 1.06%.
The stock price of ORC dropped by -24.02% 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.
ORC's Dividend Yield is rather good when compared to the industry average which is at 2.92. ORC pays more dividend than 86.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ORC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of ORC is nicely growing with an annual growth rate of 15.04%!
Dividend Growth(5Y)15.04%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
38.04% of the earnings are spent on dividend by ORC. This is a low number and sustainable payout ratio.
ORC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP38.04%
EPS Next 2Y13.35%
EPS Next 3Y14.32%
FRA:ORC (3/7/2025, 7:00:00 PM)
137.62
-6.24 (-4.34%)
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 Cap384.92B
Analysts77.33
Price Target189.27 (37.53%)
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 Years6
Div Non Decr Years6
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)-4.17%
PT rev (3m)7.32%
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 | 25.34 | ||
| Fwd PE | 20.88 | ||
| P/S | 7.61 | ||
| P/FCF | 43.8 | ||
| P/OCF | 20.6 | ||
| P/B | 30.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.22 |
EPS(TTM)5.43
EY3.95%
EPS(NY)6.59
Fwd EY4.79%
FCF(TTM)3.14
FCFY2.28%
OCF(TTM)6.68
OCFY4.85%
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 | 10.19% | ||
| ROICexc | 11.26% | ||
| ROICexgc | 30.24% | ||
| 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)10.49%
ROIC(5y)10.41%
ROICexc(3y)12.49%
ROICexc(5y)14.8%
ROICexgc(3y)40.27%
ROICexgc(5y)66.07%
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
WACC12.08%
ROIC/WACC0.84
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%