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Oracle

NYSE:ORCL
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ORCL
NYSE
$192B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The last earnings update was 76 days ago. More info.


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ORCL Share Price and Events
Price Volatility
ORCL
Industry
5yr Volatility vs Market

Value

 Is Oracle undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Oracle to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Oracle.

NYSE:ORCL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 32 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ORCL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Software Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.955 (1 + (1- 21%) (31.65%))
1.194
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.194 * 7.05%)
11.37%

Discounted Cash Flow Calculation for NYSE:ORCL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Oracle is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ORCL DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 13,440.39 14,642.11 15,707.67 17,585.50 16,236.00
Source Analyst x17 Analyst x17 Analyst x15 Analyst x2 Analyst x1
Present Value
Discounted (@ 11.37%)
12,068.49 11,805.54 11,371.95 11,431.92 9,477.30
Present value of next 5 years cash flows $56,155.20
NYSE:ORCL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $16,236.00 × (1 + 2.95%) ÷ (11.37% – 2.95%)
$198,571.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $198,571.34 ÷ (1 + 11.37%)5
$115,910.31
NYSE:ORCL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $56,155.20 + $115,910.31
$172,065.50
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $172,065.50 / 3,981.16
$43.22
NYSE:ORCL Discount to Share Price
Calculation Result
Value per share (USD) From above. $43.22
Current discount Discount to share price of $47.84
= -1 x ($47.84 - $43.22) / $43.22
-10.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Oracle is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Oracle's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Oracle's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ORCL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-05-31) in USD $0.93
NYSE:ORCL Share Price ** NYSE (2018-08-15) in USD $47.84
United States of America Software Industry PE Ratio Median Figure of 146 Publicly-Listed Software Companies 41.87x
United States of America Market PE Ratio Median Figure of 7,193 Publicly-Listed Companies 18.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Oracle.

NYSE:ORCL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ORCL Share Price ÷ EPS (both in USD)

= 47.84 ÷ 0.93

51.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oracle is overvalued based on earnings compared to the US Software industry average.
  • Oracle is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Oracle's expected growth come at a high price?
Raw Data
NYSE:ORCL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 51.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts
36.6%per year
United States of America Software Industry PEG Ratio Median Figure of 126 Publicly-Listed Software Companies 2.44x
United States of America Market PEG Ratio Median Figure of 5,693 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:ORCL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 51.54x ÷ 36.6%

1.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oracle is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Oracle's assets?
Raw Data
NYSE:ORCL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-05-31) in USD $11.44
NYSE:ORCL Share Price * NYSE (2018-08-15) in USD $47.84
United States of America Software Industry PB Ratio Median Figure of 320 Publicly-Listed Software Companies 4.43x
United States of America Market PB Ratio Median Figure of 11,718 Publicly-Listed Companies 1.87x
NYSE:ORCL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ORCL Share Price ÷ Book Value per Share (both in USD)

= 47.84 ÷ 11.44

4.18x

* Primary Listing of Oracle.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oracle is good value based on assets compared to the US Software industry average.
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Value checks
We assess Oracle's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Oracle has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Oracle expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Oracle expected to grow at an attractive rate?
  • Oracle's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Oracle's earnings growth is expected to exceed the United States of America market average.
  • Oracle's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ORCL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ORCL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts 36.6%
NYSE:ORCL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts 2.7%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 23%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ORCL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ORCL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-05-31
2022-05-31
2021-05-31 43,117 22,431 12,022 5
2020-05-31 42,131 17,419 11,794 28
2019-05-31 40,646 16,356 11,033 32
NYSE:ORCL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-05-31 39,831 15,386 3,825
2018-02-28 39,472 15,192 3,650
2017-11-30 38,907 14,581 9,913
2017-08-31 38,320 14,817 9,713
2017-05-31 37,728 14,126 9,335
2017-02-28 37,429 13,453 8,917
2016-11-30 37,236 14,249 8,820
2016-08-31 37,194 13,679 8,986
2016-05-31 37,047 13,685 8,901
2016-02-29 37,159 14,175 8,844
2015-11-30 37,473 12,943 9,198
2015-08-31 38,078 13,489 9,501

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Oracle's earnings are expected to grow significantly at over 20% yearly.
  • Oracle's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ORCL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below

All data from Oracle Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ORCL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-05-31
2022-05-31
2021-05-31 2.85 2.85 2.85 1.00
2020-05-31 2.94 3.27 2.73 14.00
2019-05-31 2.67 2.81 2.44 14.00
NYSE:ORCL Past Financials Data
Date (Data in USD Millions) EPS *
2018-05-31 0.93
2018-02-28 0.88
2017-11-30 2.40
2017-08-31 2.36
2017-05-31 2.27
2017-02-28 2.16
2016-11-30 2.13
2016-08-31 2.15
2016-05-31 2.11
2016-02-29 2.07
2015-11-30 2.13
2015-08-31 2.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Oracle is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Oracle's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Oracle has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Oracle performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Oracle's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Oracle's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Oracle's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Oracle's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
Oracle's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Oracle Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ORCL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-05-31 39,831.00 3,825.00 9,720.00 6,091.00
2018-02-28 39,472.00 3,650.00 9,719.00 6,155.00
2017-11-30 38,907.00 9,913.00 9,592.00 6,178.00
2017-08-31 38,320.00 9,713.00 9,451.00 6,213.00
2017-05-31 37,728.00 9,335.00 9,373.00 6,159.00
2017-02-28 37,429.00 8,917.00 9,371.00 6,085.00
2016-11-30 37,236.00 8,820.00 9,319.00 5,983.00
2016-08-31 37,194.00 8,986.00 9,285.00 5,917.00
2016-05-31 37,047.00 8,901.00 9,039.00 5,787.00
2016-02-29 37,159.00 8,844.00 8,900.00 5,689.00
2015-11-30 37,473.00 9,198.00 8,799.00 5,640.00
2015-08-31 38,078.00 9,501.00 8,738.00 5,585.00
2015-05-31 38,226.00 9,938.00 8,732.00 5,524.00
2015-02-28 38,840.00 10,827.00 8,748.00 5,436.00
2014-11-30 38,822.00 10,896.00 8,736.00 5,359.00
2014-08-31 38,499.00 10,948.00 8,707.00 5,243.00
2014-05-31 38,275.00 10,955.00 8,605.00 5,151.00
2014-02-28 37,902.00 11,115.00 8,315.00 5,067.00
2013-11-30 37,552.00 11,054.00 8,296.00 4,960.00
2013-08-31 37,371.00 11,082.00 8,194.00 4,886.00
2013-05-31 37,180.00 10,925.00 8,134.00 4,850.00
2013-02-28 37,149.00 10,571.00 8,296.00 4,812.00
2012-11-30 37,230.00 10,564.00 8,196.00 4,771.00
2012-08-31 36,928.00 10,175.00 8,132.00 4,674.00
2012-05-31 37,121.00 9,981.00 8,116.00 4,523.00
2012-02-29 36,980.00 9,738.00 8,228.00 4,467.00
2011-11-30 36,704.00 9,356.00 8,171.00 4,449.00
2011-08-31 36,494.00 9,035.00 7,885.00 4,466.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Oracle has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Oracle used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Oracle's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Oracle's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Oracle has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Oracle's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Oracle's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Oracle is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Oracle's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Oracle's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Oracle Company Filings, last reported 2 months ago.

NYSE:ORCL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-05-31 46,224.00 60,777.00 67,261.00
2018-02-28 48,272.00 60,799.00 70,455.00
2017-11-30 56,300.00 60,763.00 71,580.00
2017-08-31 56,366.00 53,397.00 66,897.00
2017-05-31 54,246.00 58,100.00 66,078.00
2017-02-28 51,023.00 54,229.00 59,352.00
2016-11-30 48,845.00 54,327.00 58,206.00
2016-08-31 47,832.00 54,056.00 68,396.00
2016-05-31 47,790.00 44,073.00 56,125.00
2016-02-29 46,336.00 40,106.00 50,767.00
2015-11-30 46,332.00 41,940.00 52,335.00
2015-08-31 47,538.00 42,050.00 55,930.00
2015-05-31 49,098.00 41,958.00 54,368.00
2015-02-28 48,532.00 32,257.00 43,777.00
2014-11-30 47,962.00 32,456.00 44,733.00
2014-08-31 47,931.00 32,570.00 51,616.00
2014-05-31 47,447.00 24,097.00 38,827.00
2014-02-28 45,235.00 24,193.00 37,241.00
2013-11-30 44,066.00 24,166.00 36,999.00
2013-08-31 43,986.00 24,123.00 39,137.00
2013-05-31 45,145.00 18,494.00 32,216.00
2013-02-28 43,790.00 19,752.00 33,407.00
2012-11-30 43,410.00 19,757.00 33,695.00
2012-08-31 43,736.00 14,771.00 31,607.00
2012-05-31 44,087.00 16,474.00 30,676.00
2012-02-29 43,266.00 14,777.00 29,742.00
2011-11-30 42,267.00 14,778.00 31,012.00
2011-08-31 41,239.00 14,789.00 31,660.00
  • Oracle's level of debt (131.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (41.1% vs 131.5% today).
  • Debt is well covered by operating cash flow (25.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.4x coverage).
X
Financial health checks
We assess Oracle's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Oracle has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.59%
Current annual income from Oracle dividends. Estimated to be 1.65% next year.
If you bought $2,000 of Oracle shares you are expected to receive $32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Oracle's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Oracle's dividend is below the markets top 25% of dividend payers in United States of America (3.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ORCL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 83 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5588 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ORCL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-05-31
2022-05-31
2021-05-31 0.74 6.00
2020-05-31 0.81 13.00
2019-05-31 0.80 14.00
NYSE:ORCL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-06-22 0.760 1.611
2018-06-19 0.760 1.726
2018-03-21 0.760 1.641
2018-03-19 0.760 1.565
2017-12-18 0.760 1.525
2017-12-14 0.760 1.560
2017-09-18 0.760 1.547
2017-09-14 0.760 1.524
2017-03-17 0.760 1.609
2017-03-15 0.760 1.697
2016-12-19 0.600 1.482
2016-12-15 0.600 1.515
2016-06-16 0.600 1.501
2016-03-18 0.600 1.497
2016-03-15 0.600 1.491
2015-12-18 0.600 1.658
2015-12-16 0.600 1.606
2015-06-17 0.600 1.553
2015-03-18 0.600 1.373
2015-03-17 0.600 1.380
2014-12-17 0.480 1.101
2014-09-25 0.480 1.208
2014-06-19 0.480 1.182
2014-03-18 0.480 1.176
2013-12-18 0.480 1.271
2013-06-20 0.480 1.456
2012-12-03 0.240 0.708
2012-09-20 0.240 0.772
2012-06-18 0.240 0.786
2012-03-20 0.240 0.859
2011-12-20 0.240 0.848
2011-09-20 0.240 0.779
2011-06-23 0.240 0.820
2011-03-24 0.240 0.716
2010-12-16 0.200 0.625
2010-09-16 0.200 0.707
2010-06-24 0.200 0.855
2010-03-25 0.200 0.828
2009-12-17 0.200 0.816
2009-09-16 0.200 0.919
2009-06-23 0.200 0.923
2009-03-18 0.200 1.047

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Oracle has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Oracle only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Oracle's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Oracle's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Oracle afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Oracle has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Safra Catz, image provided by Google.
Safra Catz
COMPENSATION $40,729,965
AGE 56
TENURE AS CEO 3.9 years
CEO Bio

Ms. Safra Ada Catz has been the Chief Executive Officer of Oracle Corporation since September 17, 2014 and serves as its Principal Financial Officer. Ms. Catz served as the President of Oracle Corporation from January 2004 to September 2014 and served as its Chief Financial Officer since April 25, 2011. Ms. Catz served as Chief Financial Officer of Oracle Corporation from November 15, 2005 to September 2008 and also served as its Interim Chief Financial Officer from April 2005 to July 2005. Ms. Catz served as a Co-President of PeopleSoft, Inc. since December 30, 2004. She served as the President of Oracle Corporation from January 2004 to June 2005. She served as the Executive Vice President of Oracle Corp. from November 1999 to January 2004 and was responsible for Global Business Practices and Corporate Development. She served as Senior Vice President of Oracle Corp., from April 1999 to October 1999. Prior to joining Oracle, Ms. Catz was employed by Donaldson, Lufkin & Jenrette, a global investment bank which has since merged with Credit Suisse First Boston. At Donaldson, Lufkin & Jenrette, Ms. Catz served as the Managing Director from February 1997 to March 1999 and a Senior Vice President from January 1994 to February 1997 and previously held various investment banking positions since 1986. Ms. Catz has been a Director of Oracle Corporation since October 2001. She has been a Member of Executive Council of TechNet since March 14, 2013. Ms. Catz served as an Independent Non-Executive Director of HSBC Holdings plc from May 1, 2008 to December 31, 2015. She served as a Director of PeopleSoft Inc. since December 30, 2004 and Stellent Inc. since December 12, 2006. She served as a Director of Hyperion Solutions Corp. since April 14, 2007.

CEO Compensation
  • Safra's compensation has been consistent with company performance over the past year.
  • Safra's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Oracle management team in years:

3.6
Average Tenure
57
Average Age
  • The tenure for the Oracle management team is about average.
Management Team

Larry Ellison

TITLE
Co-Founder
COMPENSATION
$41M
AGE
74
TENURE
41.2 yrs

Safra Catz

TITLE
CEO, Principal Financial Officer & Director
COMPENSATION
$41M
AGE
56
TENURE
3.9 yrs

Mark Hurd

TITLE
CEO & Director
COMPENSATION
$41M
AGE
61
TENURE
3.9 yrs

Thomas Kurian

TITLE
President of Product Development
COMPENSATION
$36M
AGE
51
TENURE
3.6 yrs

William West

TITLE
Executive VP
AGE
56
TENURE
3.3 yrs

Mark Sunday

TITLE
Senior VP & Chief Information Officer
AGE
63

Ken Bond

TITLE
Senior Vice President of Investor Relations

Dorian Daley

TITLE
Executive VP & General Counsel
AGE
59
TENURE
3.3 yrs

Doug Suriano

TITLE
Senior VP & GM-Communications
AGE
57
TENURE
1.9 yrs

Judith Sim

TITLE
Chief Marketing Officer
AGE
49
Board of Directors Tenure

Average tenure and age of the Oracle board of directors in years:

10.1
Average Tenure
67.5
Average Age
  • The average tenure for the Oracle board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Larry Ellison

TITLE
Co-Founder
COMPENSATION
$41M
AGE
74
TENURE
3.9 yrs

Safra Catz

TITLE
CEO, Principal Financial Officer & Director
COMPENSATION
$41M
AGE
56
TENURE
16.8 yrs

Mark Hurd

TITLE
CEO & Director
COMPENSATION
$41M
AGE
61
TENURE
7.9 yrs

Jeffrey Henley

TITLE
Vice Chairman of the Board
COMPENSATION
$4M
AGE
73
TENURE
3.9 yrs

Michael Boskin

TITLE
Lead Independent Director
COMPENSATION
$909K
AGE
72

Jeffrey Berg

TITLE
Independent Director
COMPENSATION
$636K
AGE
71
TENURE
21.5 yrs

Bruce Chizen

TITLE
Independent Director
COMPENSATION
$660K
AGE
63
TENURE
10.1 yrs

Renee James

TITLE
Independent Director
COMPENSATION
$601K
AGE
53
TENURE
2.7 yrs

Naomi Seligman

TITLE
Independent Director
COMPENSATION
$492K
AGE
80
TENURE
12.8 yrs

Hector Garcia-Molina

TITLE
Independent Director
COMPENSATION
$470K
AGE
64
TENURE
16.8 yrs
Recent Insider Trading
  • Oracle insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Oracle's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Oracle has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Oracle Corporation (NYSE:ORCL)'s Return on Capital

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Oracle’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Does Oracle Corporation's (NYSE:ORCL) PE Ratio Signal A Selling Opportunity?

I am writing today to help inform people who are new to the stock market. … While ORCL might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

How Confident Are Insiders About Oracle Corporation (NYSE:ORCL)?

some insider selling over the past three months, with insiders divesting from. … Generally, insiders selling shares in their own firm sends a bearish signal. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Should Income Investors Buy Oracle Corporation (NYSE:ORCL) Before Its Ex-Dividend?

Investors who want to cash in on Oracle Corporation's (NYSE:ORCL) upcoming dividend of US$0.19 per share have only 2 days left to buy the shares before its ex-dividend date, 16 July 2018, in time for dividends payable on the 31 July 2018. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Should Oracle Corporation's (NYSE:ORCL) Recent Earnings Worry You?

Examining Oracle Corporation's (NYSE:ORCL) past track record of performance is a valuable exercise for investors. … Below, I will assess ORCL's latest performance announced on 31 May 2018 and weigh these figures against its longer term trend and industry movements. … ORCL's trailing twelve-month earnings (from 31 May 2018) of US$3.83b has

Simply Wall St -

Did Oracle Corporation (NYSE:ORCL) Create Value For Investors Over The Past Year?

and want to begin learning the link between Oracle Corporation (NYSE:ORCL)’s return fundamentals and stock market performance. … Oracle Corporation (NYSE:ORCL) generated a below-average return on equity of 8.28% in the past 12 months, while its industry returned 13.11%. … Knowing these components can change your views on ORCL's below-average returns.

Simply Wall St -

Does Oracle Corporation's (NYSE:ORCL) PE Ratio Warrant A Sell?

ORCL is priced at a steep multiple of 49.85x based on its prior year’s earnings,. … considerably outstripping the 37x average multiple of the Software. … To resolve this problem, I’ll identify some important factors to consider when judging the relative valuation of

Simply Wall St -

What Should Investors Know About Oracle Corporation's (NYSE:ORCL) Profit Margin?

remarkably upbeat outlook for net income … growth of 56.43% annualised … over the couple of years ahead,

Simply Wall St -

Calculating The Intrinsic Value Of Oracle Corporation (NYSE:ORCL)

How far off is Oracle Corporation (NYSE:ORCL) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is It Too Late To Buy Oracle Corporation (NYSE:ORCL) At Its May Price?

Oracle is trading at price-to-earnings (PE) ratio of 53.22x, this tells us the stock is overvalued compared to the US market average ratio of 18.33x , and overvalued based on current earnings compared to the software industry average of 34.72x. … NYSE:ORCL PE PEG Gauge May 24th 18 After looking at ORCL's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … However, since Oracle is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio.

Simply Wall St -

Company Info

Map
Description

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. It offers human capital and talent management, enterprise resource planning, customer experience and relationship management, procurement, supply chain management, project portfolio management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, and risk and compliance applications. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, extend, and integrate business applications, as well as automate business processes. In addition, it provides a range of development tools, identity management, and business analytics software solutions for mobile computing development to address the development needs of businesses; Java, a software development language; and big data solutions. Further, the company provides Oracle Engineered Systems, servers, storage, industry-specific hardware, and hardware support products, as well as operating systems, virtualization, management, and other hardware-related software. Additionally, it provides consulting services, including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade services; and customer support and education services. The company serves businesses, government agencies, educational institutions, and resellers. Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California.

Details
Name: Oracle Corporation
ORCL
Exchange: NYSE
Founded: 1977
$192,011,105,650
3,981,155,000
Website: http://www.oracle.com
Address: Oracle Corporation
500 Oracle Parkway,
Redwood City,
California, 94065,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ORCL Common Stock New York Stock Exchange US USD 12. Mar 1986
DB ORC Common Stock Deutsche Boerse AG DE EUR 12. Mar 1986
XTRA ORC Common Stock XETRA Trading Platform DE EUR 12. Mar 1986
SWX ORCL Common Stock SIX Swiss Exchange CH CHF 12. Mar 1986
WBAG ORCL Common Stock Wiener Boerse AG AT EUR 12. Mar 1986
SNSE ORCL Common Stock Santiago Stock Exchange CL USD 12. Mar 1986
BMV ORCL * Common Stock Bolsa Mexicana de Valores MX MXN 12. Mar 1986
BOVESPA ORCL34 BDR EACH REPR 1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 29. Dec 2011
Number of employees
Current staff
Staff numbers
137,000
Oracle employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/08/15 21:34
End of day share price update: 2018/08/15 00:00
Last estimates confirmation: 2018/08/14
Last earnings update: 2018/05/31
Last annual earnings update: 2018/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.