NYSE:ORCL

Stock Analysis Report

Executive Summary

Oracle Corporation provides products and services that address enterprise information technology environments worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Oracle's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

ORCL

-3.0%

US Software

0.4%

US Market


1 Year Return

15.8%

ORCL

23.8%

US Software

11.4%

US Market

Return vs Industry: ORCL underperformed the US Software industry which returned 23.8% over the past year.

Return vs Market: ORCL exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

ORCLIndustryMarket
7 Day-3.1%-3.0%0.4%
30 Day0.2%-3.1%0.3%
90 Day-7.1%-9.0%-1.2%
1 Year17.7%15.8%25.6%23.8%13.9%11.4%
3 Year48.4%41.3%110.3%101.8%47.2%37.6%
5 Year51.7%40.3%159.3%140.5%62.4%44.6%

Price Volatility Vs. Market

How volatile is Oracle's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Oracle undervalued compared to its fair value and its price relative to the market?

17.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORCL ($54.13) is trading above our estimate of fair value ($52.6)

Significantly Below Fair Value: ORCL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORCL is good value based on its PE Ratio (17.2x) compared to the Software industry average (44.8x).

PE vs Market: ORCL is good value based on its PE Ratio (17.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ORCL is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ORCL is overvalued based on its PB Ratio (9.7x) compared to the US Software industry average (5.2x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Oracle forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORCL's forecast earnings growth (4.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ORCL's earnings (4.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ORCL's earnings are forecast to grow, but not significantly.

Revenue vs Market: ORCL's revenue (2.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ORCL's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORCL's Return on Equity is forecast to be very high in 3 years time (82.4%).


Next Steps

Past Performance

How has Oracle performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORCL's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: ORCL's earnings growth over the past year (195.4%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: ORCL earnings growth over the past year (195.4%) exceeded the Software industry 23%.


Return on Equity

High ROE: Whilst ORCL's Return on Equity (57.6%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ORCL has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: ORCL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oracle's financial position?


Financial Position Analysis

Short Term Liabilities: ORCL's short term assets ($42.4B) exceeds its short term liabilities ($18.9B)

Long Term Liabilities: ORCL's short term assets (42.4B) do not cover its long term liabilities (68.3B)


Debt to Equity History and Analysis

Debt Level: ORCL's debt to equity ratio (287.5%) is considered high

Reducing Debt: ORCL's debt to equity ratio has increased from 67.3% to 287.5% over the past 5 years.

Debt Coverage: ORCL's debt is well covered by operating cash flow (25.3%).

Interest Coverage: ORCL's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: ORCL has a low level of unsold assets or inventory.

Debt Coverage by Assets: ORCL's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Oracle's current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ORCL's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ORCL's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: ORCL's dividends per share have been stable in the past 10 years.

Growing Dividend: ORCL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), ORCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORCL's dividends in 3 years are forecast to be well covered by earnings (22.5% payout ratio).


Next Steps

Management

What is the CEO of Oracle's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Safra Catz (57yo)

0.08yrs

Tenure

US$965,981

Compensation

Ms. Safra Ada Catz has been the Chief Executive Officer of Oracle Corporation since September 17, 2014. Ms. Catz served as the President of Oracle Corporation from January 2004 to September 2014 and served ...


CEO Compensation Analysis

Compensation vs. Market: Safra has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Safra's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

57yo

Average Age

Experienced Management: ORCL's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

13.9yrs

Average Tenure

73.5yo

Average Age

Experienced Board: ORCL's board of directors are seasoned and experienced ( 13.9 years average tenure).


Insider Trading

Insider Buying: ORCL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$160,69220 Sep 19
Renée James
EntityIndividual
Shares3,000
Max PriceUS$53.56

Ownership Breakdown


Management Team

  • Larry Ellison (75yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: US$1.66m
  • William West (57yo)

    Executive VP

    • Tenure: 4.5yrs
  • Safra Catz (57yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$965.98k
  • Mark Sunday (64yo)

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Edward Screven (54yo)

    Executive VP & Chief Corporate Architect

    • Tenure: 4.4yrs
    • Compensation: US$34.17m
  • Dorian Daley (60yo)

    Executive VP & General Counsel

    • Tenure: 4.5yrs
    • Compensation: US$8.00m
  • Joyce Westerdahl

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • Doug Kehring (46yo)

    Executive VP of Corporate Operations & Head of Corporate Development

    • Tenure: 0yrs
  • Rupal Hollenbeck

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Ken Bond

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Larry Ellison (75yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: US$1.66m
  • Jeffrey Henley (74yo)

    Vice Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: US$4.21m
  • Bruce Chizen (64yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$563.83k
  • Michael Boskin (73yo)

    Independent Director

    • Tenure: 25.5yrs
    • Compensation: US$691.32k
  • George Conrades (80yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$706.32k
  • Safra Catz (57yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$965.98k
  • Naomi Seligman (81yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$470.06k
  • Jeff Berg (72yo)

    Independent Director

    • Tenure: 22.7yrs
    • Compensation: US$614.00k
  • Leon Panetta (80yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$485.06k
  • Hector Garcia-Molina (65yo)

    Independent Director

    • Tenure: 18yrs
    • Compensation: US$460.06k

Company Information

Oracle Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oracle Corporation
  • Ticker: ORCL
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$177.683b
  • Shares outstanding: 3.28b
  • Website: https://www.oracle.com

Number of Employees


Location

  • Oracle Corporation
  • 500 Oracle Parkway
  • Redwood Shores
  • California
  • 94065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORCLNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1986
ORCL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1986
ORCDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1986
ORCXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1986
ORCLSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMar 1986
ORCLSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1986
ORCLWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1986
ORCLBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/3 USD0.01ARARSSep 2000
ORCL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLDec 2011

Biography

Oracle Corporation provides products and services that address enterprise information technology environments worldwide. The company’s cloud and license business engages in the sale, marketing, and deliver ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:43
End of Day Share Price2019/10/23 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.