ORACLE CORP (ORCL)
US68389X1054 - Common Stock
ORCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. While ORCL belongs to the best of the industry regarding profitability, there are concerns on its financial health. ORCL is not valued too expensively and it also shows a decent 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.
In the past 5 years ORCL has always been profitable.
ORCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORCL has a better Return On Assets (7.61%) than 82.44% of its industry peers.
ORCL has a better Return On Equity (101.49%) than 98.92% of its industry peers.
ORCL's Return On Invested Capital of 13.57% is amongst the best of the industry. ORCL outperforms 91.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORCL is in line with the industry average of 11.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 101.49% | ||
| ROIC | 13.57% |
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
ORCL has a better Profit Margin (20.40%) than 88.17% of its industry peers.
ORCL's Profit Margin has declined in the last couple of years.
ORCL has a Operating Margin of 31.04%. This is amongst the best in the industry. ORCL outperforms 96.06% of its industry peers.
ORCL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 71.31%, ORCL is in line with its industry, outperforming 57.35% of the companies in the same industry.
In the last couple of years the Gross Margin of ORCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.04% | ||
| PM (TTM) | 20.4% | ||
| GM | 71.31% |
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 just above the Cost of Capital (WACC), so ORCL is still creating some value.
Compared to 1 year ago, ORCL has more shares outstanding
Compared to 5 years ago, ORCL has less shares outstanding
The debt/assets ratio for ORCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 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 2.75. This is comparable to the rest of the industry: ORCL outperforms 49.46% of its industry peers.
The Debt to FCF ratio of ORCL is 7.50, which is on the high side as it means it would take ORCL, 7.50 years of fcf income to pay off all of its debts.
ORCL has a Debt to FCF ratio of 7.50. This is comparable to the rest of the industry: ORCL outperforms 52.33% of its industry peers.
ORCL has a Debt/Equity ratio of 6.96. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ORCL (6.96) is worse than 87.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.96 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.2
WACC11.27%
2.3 Liquidity
A Current Ratio of 0.72 indicates that ORCL may have some problems paying its short term obligations.
ORCL has a Current ratio of 0.72. This is amonst the worse of the industry: ORCL underperforms 85.30% of its industry peers.
A Quick Ratio of 0.72 indicates that ORCL may have some problems paying its short term obligations.
ORCL's Quick ratio of 0.72 is on the low side compared to the rest of the industry. ORCL is outperformed by 84.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ORCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.07%, which is quite good.
The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
ORCL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
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)9.07%
EPS 3Y5.9%
EPS 5Y9.49%
EPS Q2Q%16.81%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y9.37%
Revenue growth 5Y6.04%
Sales Q2Q%6.86%
3.2 Future
The Earnings Per Share is expected to grow by 12.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.44% on average over the next years. This is quite good.
EPS Next Y15.11%
EPS Next 2Y14.47%
EPS Next 3Y14.7%
EPS Next 5Y12.84%
Revenue Next Year9.05%
Revenue Next 2Y10.52%
Revenue Next 3Y11.58%
Revenue Next 5Y10.44%
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
ORCL is valuated quite expensively with a Price/Earnings ratio of 32.03.
ORCL's Price/Earnings ratio is a bit cheaper when compared to the industry. ORCL is cheaper than 73.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORCL to the average of the S&P500 Index (29.55), we can say ORCL is valued inline with the index average.
ORCL is valuated quite expensively with a Price/Forward Earnings ratio of 25.32.
75.63% of the companies in the same industry are more expensive than ORCL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.22, ORCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
ORCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ORCL is cheaper than 78.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ORCL is valued a bit cheaper than 65.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.44 | ||
| EV/EBITDA | 25.43 |
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.
ORCL's earnings are expected to grow with 14.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)3.38
EPS Next 2Y14.47%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
ORCL has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 11.84, ORCL pays a better dividend. On top of this ORCL pays more dividend than 92.83% of the companies listed in the same industry.
With a Dividend Yield of 0.83, ORCL pays less dividend than the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of ORCL grows each year by 15.04%, which is quite nice.
ORCL has paid a dividend for at least 10 years, which is 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 Years10
Div Non Decr Years10
5.3 Sustainability
ORCL pays out 40.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
ORCL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.11%
EPS Next 2Y14.47%
EPS Next 3Y14.7%
ORACLE CORP
NYSE:ORCL (11/29/2024, 4:02:00 PM)
After market: 184.84 0 (0%)184.84
+2.14 (+1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap512.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.12
PEG (5Y)3.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 101.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.04% | ||
| PM (TTM) | 20.4% | ||
| GM | 71.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.07%
EPS 3Y5.9%
EPS 5Y
EPS Q2Q%
EPS Next Y15.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.6%
Revenue growth 3Y9.37%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y