ORACLE CORP (ORCL) Stock Fundamental Analysis
NYSE:ORCL - New York Stock Exchange, Inc. - US68389X1054 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ORCL. ORCL was compared to 282 industry peers in the Software industry. ORCL has an excellent profitability rating, but there are concerns on its financial health. ORCL is valied quite expensively at the moment, while it does show a decent growth rate. ORCL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ORCL had positive earnings in the past year.
ORCL had a positive operating cash flow in the past year.
Each year in the past 5 years ORCL has been profitable.
Each year in the past 5 years ORCL had a positive operating cash flow.
1.2 Ratios
ORCL's Return On Assets of 7.39% is amongst the best of the industry. ORCL outperforms 80.50% of its industry peers.
The Return On Equity of ORCL (60.84%) is better than 97.16% of its industry peers.
The Return On Invested Capital of ORCL (11.77%) is better than 88.65% 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 12.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROIC | 11.77% |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
1.3 Margins
ORCL's Profit Margin of 21.68% is amongst the best of the industry. ORCL outperforms 89.72% of its industry peers.
In the last couple of years the Profit Margin of ORCL has declined.
ORCL has a Operating Margin of 31.45%. This is amongst the best in the industry. ORCL outperforms 95.39% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
ORCL has a Gross Margin (70.51%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ORCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% |
OM growth 3Y-5.53%
OM growth 5Y-2.86%
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
ORCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ORCL has been increased compared to 1 year ago.
Compared to 5 years ago, ORCL has less shares outstanding
ORCL has a better debt/assets ratio than last year.
2.2 Solvency
ORCL has an Altman-Z score of 3.00. This indicates that ORCL is financially healthy and has little risk of bankruptcy at the moment.
ORCL has a Altman-Z score (3.00) which is in line with its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that ORCL has dependencies on debt financing.
With a Debt to Equity ratio value of 4.17, ORCL is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3 |
ROIC/WACC1.39
WACC8.44%
2.3 Liquidity
ORCL has a Current Ratio of 0.75. This is a bad value and indicates that ORCL is not financially healthy enough and could expect problems in meeting its short term obligations.
ORCL has a Current ratio of 0.75. This is amonst the worse of the industry: ORCL underperforms 83.33% of its industry peers.
A Quick Ratio of 0.75 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Quick ratio of 0.75 is on the low side compared to the rest of the industry. ORCL is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.26%, which is quite good.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
The Revenue has grown by 8.38% in the past year. This is quite good.
ORCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 8.00% yearly.
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
Based on estimates for the next years, ORCL will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
EPS Next Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
Revenue Next 5Y16.38%
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
ORCL is valuated quite expensively with a Price/Earnings ratio of 36.31.
66.31% of the companies in the same industry are more expensive than ORCL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.21, ORCL is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.71, which means the current valuation is very expensive for ORCL.
Based on the Price/Forward Earnings ratio, ORCL is valued a bit cheaper than 61.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, ORCL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.31 | ||
| Fwd PE | 31.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORCL is valued a bit cheaper than the industry average as 75.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.69 |
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 18.82% in the coming years.
PEG (NY)2.5
PEG (5Y)3.94
EPS Next 2Y17.64%
EPS Next 3Y18.82%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.94%, which is pretty low.
ORCL's Dividend Yield is rather good when compared to the industry average which is at 16.20. ORCL pays more dividend than 92.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ORCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of ORCL grows each year by 12.29%, 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)12.29%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ORCL pays out 38.12% of its income as dividend. This is a sustainable payout ratio.
ORCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.12%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
218.96
+0.33 (+0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.69%
Inst Owner Change0.46%
Ins Owners0.15%
Ins Owner Change0%
Market Cap614.01B
Analysts78.26
Price Target215.96 (-1.37%)
Short Float %1.24%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend1.71
Dividend Growth(5Y)12.29%
DP38.12%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.99%
Min EPS beat(2)-3.45%
Max EPS beat(2)1.47%
EPS beat(4)2
Avg EPS beat(4)-0.44%
Min EPS beat(4)-3.45%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)6
Avg EPS beat(12)-0.45%
EPS beat(16)9
Avg EPS beat(16)0.62%
Revenue beat(2)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)1
Avg Revenue beat(16)-1.81%
PT rev (1m)16.79%
PT rev (3m)11.92%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)1.33%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)2.49%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.31 | ||
| Fwd PE | 31.71 | ||
| P/S | 10.7 | ||
| P/FCF | N/A | ||
| P/OCF | 29.49 | ||
| P/B | 30.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.69 |
EPS(TTM)6.03
EY2.75%
EPS(NY)6.91
Fwd EY3.15%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)7.42
OCFY3.39%
SpS20.47
BVpS7.29
TBVpS-16.53
PEG (NY)2.5
PEG (5Y)3.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 60.84% | ||
| ROCE | 13.3% | ||
| ROIC | 11.77% | ||
| ROICexc | 12.83% | ||
| ROICexgc | 27.68% | ||
| OM | 31.45% | ||
| PM (TTM) | 21.68% | ||
| GM | 70.51% | ||
| FCFM | N/A |
ROA(3y)7.05%
ROA(5y)7.55%
ROE(3y)324.52%
ROE(5y)N/A
ROIC(3y)11.91%
ROIC(5y)12.88%
ROICexc(3y)13.1%
ROICexc(5y)16.61%
ROICexgc(3y)39.23%
ROICexgc(5y)55.84%
ROCE(3y)13.45%
ROCE(5y)14.55%
ROICexcg growth 3Y-23.53%
ROICexcg growth 5Y-29.92%
ROICexc growth 3Y-14.65%
ROICexc growth 5Y-10.84%
OM growth 3Y-5.53%
OM growth 5Y-2.86%
PM growth 3Y11.06%
PM growth 5Y-3.53%
GM growth 3Y-3.75%
GM growth 5Y-2.42%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 343.62% | ||
| Cap/Sales | 36.96% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 85.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3 |
F-Score6
WACC8.44%
ROIC/WACC1.39
Cap/Depr(3y)199.27%
Cap/Depr(5y)163.1%
Cap/Sales(3y)22.44%
Cap/Sales(5y)16.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.26%
EPS 3Y7.09%
EPS 5Y9.22%
EPS Q2Q%4.29%
EPS Next Y14.51%
EPS Next 2Y17.64%
EPS Next 3Y18.82%
EPS Next 5Y19.67%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y10.59%
Revenue growth 5Y8%
Sales Q2Q%11.31%
Revenue Next Year16.98%
Revenue Next 2Y18.09%
Revenue Next 3Y17.87%
Revenue Next 5Y16.38%
EBIT growth 1Y12.33%
EBIT growth 3Y4.48%
EBIT growth 5Y4.91%
EBIT Next Year37.99%
EBIT Next 3Y27.05%
EBIT Next 5Y25.21%
FCF growth 1Y-103.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.5%
OCF growth 3Y29.72%
OCF growth 5Y9.64%