ORACLE CORP (ORCL)

US68389X1054 - Common Stock

166.32  +0.29 (+0.17%)

After market: 166.45 +0.13 (+0.08%)

Fundamental Rating

5

Taking everything into account, ORCL scores 5 out of 10 in our fundamental rating. ORCL was compared to 280 industry peers in the Software industry. ORCL scores excellent on profitability, but there are concerns on its financial health. ORCL has a correct valuation and a medium growth rate.



7

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.
ORCL had positive earnings in each of the past 5 years.
ORCL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ORCL's Return On Assets of 7.83% is amongst the best of the industry. ORCL outperforms 82.78% of its industry peers.
With an excellent Return On Equity value of 84.57%, ORCL belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.19%, ORCL belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
ORCL had an Average Return On Invested Capital over the past 3 years of 13.58%. This is in line with the industry average of 12.15%.
Industry RankSector 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

Looking at the Profit Margin, with a value of 21.16%, ORCL belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
ORCL's Profit Margin has declined in the last couple of years.
ORCL has a better Operating Margin (31.47%) than 95.97% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 71.27%, ORCL perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of ORCL has declined.
Industry RankSector 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

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ORCL is creating some 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.
The debt/assets ratio for ORCL has been reduced compared to a year ago.

2.2 Solvency

ORCL has an Altman-Z score of 2.60. This is not the best score and indicates that ORCL is in the grey zone with still only limited risk for bankruptcy at the moment.
ORCL has a Altman-Z score of 2.60. This is comparable to the rest of the industry: ORCL outperforms 47.25% 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.
ORCL has a Debt to FCF ratio (9.29) which is comparable to the rest of the industry.
ORCL has a Debt/Equity ratio of 5.85. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.85, ORCL is doing worse than 87.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 5.85
Debt/FCF 9.29
Altman-Z 2.6
ROIC/WACC1.17
WACC11.23%

2.3 Liquidity

ORCL has a Current Ratio of 0.81. This is a bad value and indicates that ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, ORCL is not doing good in the industry: 82.42% of the companies in the same industry are doing better.
ORCL has a Quick Ratio of 0.81. This is a bad value and indicates that ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, ORCL is not doing good in the industry: 82.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.81

6

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.
Looking at the last year, ORCL shows a small growth in Revenue. The Revenue has grown by 6.40% in the last year.
Measured over the past years, ORCL shows a small growth in Revenue. The Revenue has been growing by 6.04% on average per year.
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 16.42% yearly.
ORCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.33% yearly.
EPS Next Y12.84%
EPS Next 2Y13.56%
EPS Next 3Y14.29%
EPS Next 5Y16.42%
Revenue Next Year8.33%
Revenue Next 2Y10.41%
Revenue Next 3Y11.78%
Revenue Next 5Y13.33%

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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.19, the valuation of ORCL can be described as expensive.
ORCL's Price/Earnings ratio is a bit cheaper when compared to the industry. ORCL is cheaper than 74.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ORCL is valued at the same level.
A Price/Forward Earnings ratio of 23.15 indicates a rather expensive valuation of ORCL.
Based on the Price/Forward Earnings ratio, ORCL is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, ORCL is valued at the same level.
Industry RankSector Rank
PE 28.19
Fwd PE 23.15

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than the industry average as 77.66% of the companies are valued more expensively.
64.47% of the companies in the same industry are more expensive than ORCL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 48.75
EV/EBITDA 23.21

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORCL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ORCL's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)2.2
PEG (5Y)2.97
EPS Next 2Y13.56%
EPS Next 3Y14.29%

6

5. Dividend

5.1 Amount

ORCL has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 13.69, ORCL pays a better dividend. On top of this ORCL pays more dividend than 93.04% of the companies listed in the same industry.
With a Dividend Yield of 0.96, ORCL pays less dividend than the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 0.96%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.04%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

38.04% of the earnings are spent on dividend by ORCL. This is a low number and 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 2Y13.56%
EPS Next 3Y14.29%

ORACLE CORP

NYSE:ORCL (1/3/2025, 8:04:00 PM)

After market: 166.45 +0.13 (+0.08%)

166.32

+0.29 (+0.17%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-09 2024-12-09/amc
Earnings (Next)N/A N/A
Inst Owners44.3%
Inst Owner Change1.49%
Ins Owners0.24%
Ins Owner Change0.01%
Market Cap465.19B
Analysts76.82
Price Target198.67 (19.45%)
Short Float %1.24%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 0.96%
Dividend Growth(5Y)15.04%
DP38.04%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-10 2025-01-10 (0.4)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-2.68%
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)0.21%
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)-1.85%
Min Revenue beat(2)-2.31%
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)-1.86%
Revenue beat(16)0
Avg Revenue beat(16)-1.71%
PT rev (1m)7.21%
PT rev (3m)10.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.65%
Valuation
Industry RankSector Rank
PE 28.19
Fwd PE 23.15
P/S 8.47
P/FCF 48.75
P/OCF 22.93
P/B 33.84
P/tB N/A
EV/EBITDA 23.21
EPS(TTM)5.9
EY3.55%
EPS(NY)7.18
Fwd EY4.32%
FCF(TTM)3.41
FCFY2.05%
OCF(TTM)7.25
OCFY4.36%
SpS19.64
BVpS4.91
TBVpS-19.36
PEG (NY)2.2
PEG (5Y)2.97
Profitability
Industry RankSector 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 RankSector 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 2.6
F-Score7
WACC11.23%
ROIC/WACC1.17
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 Y12.84%
EPS Next 2Y13.56%
EPS Next 3Y14.29%
EPS Next 5Y16.42%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%8.64%
Revenue Next Year8.33%
Revenue Next 2Y10.41%
Revenue Next 3Y11.78%
Revenue Next 5Y13.33%
EBIT growth 1Y16.07%
EBIT growth 3Y0.61%
EBIT growth 5Y2.77%
EBIT Next Year33.71%
EBIT Next 3Y20.66%
EBIT Next 5YN/A
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%