ORACLE CORP (ORC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ORC • US68389X1054
140.7 EUR
+3.34 (+2.43%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to ORC. ORC was compared to 115 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- ORC had positive earnings in the past year.
- In the past year ORC had a positive cash flow from operations.
- 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
- ORC has a better Return On Assets (7.52%) than 61.74% of its industry peers.
- ORC has a Return On Equity of 51.50%. This is amongst the best in the industry. ORC outperforms 90.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.17%, ORC is in the better half of the industry, outperforming 61.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ORC is below the industry average of 13.48%.
| 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 82.61% of its industry peers.
- In the last couple of years the Profit Margin of ORC has declined.
- ORC's Operating Margin of 31.81% is amongst the best of the industry. ORC outperforms 90.43% of its industry peers.
- In the last couple of years the Operating Margin of ORC has declined.
- ORC has a Gross Margin (68.54%) which is comparable to the rest of the industry.
- ORC's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ORC is destroying value.
- ORC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ORC has less shares outstanding
- The debt/assets ratio for ORC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.16 indicates that ORC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ORC's Altman-Z score of 2.16 is in line compared to the rest of the industry. ORC outperforms 44.35% of its industry peers.
- A Debt/Equity ratio of 3.49 is on the high side and indicates that ORC has dependencies on debt financing.
- ORC has a worse Debt to Equity ratio (3.49) than 88.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC0.79
WACC10.4%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that ORC may have some problems paying its short term obligations.
- ORC has a Current ratio of 0.91. This is in the lower half of the industry: ORC underperforms 78.26% 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.
- With a Quick ratio value of 0.91, ORC is not doing good in the industry: 76.52% of the companies in the same industry are doing better.
| 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.
- 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 11.08% in the last year.
- 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.
- ORC 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 24.30, ORC is valued on the expensive side.
- ORC's Price/Earnings ratio is a bit cheaper when compared to the industry. ORC is cheaper than 72.17% of the companies in the same industry.
- ORC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 20.73, which indicates a rather expensive current valuation of ORC.
- Based on the Price/Forward Earnings ratio, ORC is valued a bit cheaper than 72.17% of the companies in the same industry.
- ORC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
- ORC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.51 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.98
PEG (5Y)2.64
EPS Next 2Y15.82%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.18%, ORC has a reasonable but not impressive dividend return.
- The stock price of ORC dropped by -37.55% 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 0.68. ORC pays more dividend than 82.61% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.83, ORC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
- On average, the dividend of ORC grows each year by 12.29%, which is quite nice.
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.
- ORC's earnings are growing more than its dividend. This makes the dividend growth 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 24.3 and the Price/Book (PB) ratio is 15.96.
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.