ORACLE CORP (ORCL) Stock Fundamental Analysis
NYSE:ORCL - New York Stock Exchange, Inc. - US68389X1054 - Common Stock - Currency: USD
Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 284 industry peers in the Software industry. ORCL has an excellent profitability rating, but there are concerns on its financial health. ORCL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ORCL was profitable.
In the past year ORCL had a positive cash flow from operations.
Each year in the past 5 years ORCL has been profitable.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.83%, ORCL belongs to the best of the industry, outperforming 82.97% of the companies in the same industry.
ORCL has a Return On Equity of 84.57%. This is amongst the best in the industry. ORCL outperforms 98.55% of its industry peers.
ORCL has a Return On Invested Capital of 13.19%. This is amongst the best in the industry. ORCL outperforms 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORCL is in line with the industry average of 11.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 84.57% | ||
| ROIC | 13.19% |
ROA(3y)6.63%
ROA(5y)7.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.58%
ROIC(5y)13.47%
1.3 Margins
The Profit Margin of ORCL (21.16%) is better than 88.04% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL has a better Operating Margin (31.47%) than 96.01% of its industry peers.
In the last couple of years the Operating Margin of ORCL has declined.
ORCL has a Gross Margin (71.27%) which is in line with its industry peers.
ORCL'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 ORCL is destroying value.
The number of shares outstanding for ORCL has been increased compared to 1 year ago.
ORCL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ORCL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.72 indicates that ORCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
ORCL has a Altman-Z score of 2.72. This is comparable to the rest of the industry: ORCL outperforms 50.36% of its industry peers.
The Debt to FCF ratio of ORCL is 9.29, which is on the high side as it means it would take ORCL, 9.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.29, ORCL is in line with its industry, outperforming 49.64% of the companies in the same industry.
A Debt/Equity ratio of 5.85 is on the high side and indicates that ORCL has dependencies on debt financing.
ORCL has a worse Debt to Equity ratio (5.85) than 87.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.85 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.95
WACC13.84%
2.3 Liquidity
A Current Ratio of 0.81 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Current ratio of 0.81. This is amonst the worse of the industry: ORCL underperforms 82.97% of its industry peers.
A Quick Ratio of 0.81 indicates that ORCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, ORCL is not doing good in the industry: 82.97% 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
ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
ORCL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
ORCL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.40%.
The Revenue has been growing slightly by 6.04% on average over the past years.
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
ORCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.36% yearly.
ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.24% yearly.
EPS Next Y12.71%
EPS Next 2Y13.43%
EPS Next 3Y14.35%
EPS Next 5Y16.36%
Revenue Next Year8.37%
Revenue Next 2Y10.48%
Revenue Next 3Y11.92%
Revenue Next 5Y13.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 29.83, ORCL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ORCL is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 30.30. ORCL is around the same levels.
The Price/Forward Earnings ratio is 24.56, which indicates a rather expensive current valuation of ORCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 75.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ORCL to the average of the S&P500 Index (23.06), we can say ORCL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 24.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued cheaper than 80.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ORCL indicates a somewhat cheap valuation: ORCL is cheaper than 60.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.59 | ||
| EV/EBITDA | 24.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ORCL may justify a higher PE ratio.
A more expensive valuation may be justified as ORCL's earnings are expected to grow with 14.35% in the coming years.
PEG (NY)2.35
PEG (5Y)3.14
EPS Next 2Y13.43%
EPS Next 3Y14.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, ORCL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.72, ORCL pays a better dividend. On top of this ORCL pays more dividend than 92.39% of the companies listed in the same industry.
With a Dividend Yield of 0.92, ORCL pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of ORCL grows each year by 15.04%, which is quite nice.
ORCL has been paying a dividend for at least 10 years, so it has a reliable track record.
ORCL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.04%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ORCL pays out 38.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of ORCL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP38.04%
EPS Next 2Y13.43%
EPS Next 3Y14.35%
176
-5.52 (-3.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.3%
Inst Owner Change0.43%
Ins Owners0.24%
Ins Owner Change0.01%
Market Cap492.26B
Analysts76.89
Price Target199.87 (13.56%)
Short Float %1.66%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.61
Dividend Growth(5Y)15.04%
DP38.04%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)0.6%
PT rev (3m)7.71%
EPS NQ rev (1m)-4.68%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 24.56 | ||
| P/S | 8.96 | ||
| P/FCF | 51.59 | ||
| P/OCF | 24.27 | ||
| P/B | 35.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.4 |
EPS(TTM)5.9
EY3.35%
EPS(NY)7.17
Fwd EY4.07%
FCF(TTM)3.41
FCFY1.94%
OCF(TTM)7.25
OCFY4.12%
SpS19.64
BVpS4.91
TBVpS-19.36
PEG (NY)2.35
PEG (5Y)3.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 84.57% | ||
| ROCE | 14.47% | ||
| ROIC | 13.19% | ||
| ROICexc | 14.57% | ||
| ROICexgc | 39.16% | ||
| 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)13.58%
ROIC(5y)13.47%
ROICexc(3y)16.17%
ROICexc(5y)19.16%
ROICexgc(3y)52.15%
ROICexgc(5y)85.55%
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 | 2.72 |
F-Score7
WACC13.84%
ROIC/WACC0.95
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 Y12.71%
EPS Next 2Y13.43%
EPS Next 3Y14.35%
EPS Next 5Y16.36%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%8.64%
Revenue Next Year8.37%
Revenue Next 2Y10.48%
Revenue Next 3Y11.92%
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%