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ORCL

Oracle NYSE:ORCL Stock Report

Last Price

US$69.71

Market Cap

US$189.9b

7D

-2.6%

1Y

-11.8%

Updated

16 May, 2022

Data

Company Financials +
ORCL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends5/6

ORCL Stock Overview

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

Rewards

Trading at 47.6% below our estimate of its fair value

Earnings are forecast to grow 32.07% per year

Pays a reliable dividend of 1.84%

Risk Analysis

Debt is not well covered by operating cash flow

Negative shareholders equity

Large one-off items impacting financial results

Profit margins (18.1%) are lower than last year (32.3%)

+ 1 more risk

Oracle Competitors

Microsoft

NasdaqGS:MSFT

US$2.0t

ServiceNow

NYSE:NOW

US$86.8b

Palo Alto Networks

NasdaqGS:PANW

US$46.1b

VMware

NYSE:VMW

US$42.2b

Price History & Performance

Summary of all time highs, changes and price drops for Oracle
Historical stock prices
Current Share PriceUS$69.71
52 Week HighUS$106.34
52 Week LowUS$68.97
Beta0.86
1 Month Change-12.26%
3 Month Change-12.61%
1 Year Change-11.85%
3 Year Change29.91%
5 Year Change56.19%
Change since IPO11,602.61%

Recent News & Updates

May 13
Should You Investigate Oracle Corporation (NYSE:ORCL) At US$70.73?

Should You Investigate Oracle Corporation (NYSE:ORCL) At US$70.73?

Today we're going to take a look at the well-established Oracle Corporation ( NYSE:ORCL ). The company's stock received...

Apr 26

Oracle: Prepare For A Change

Oracle outperformed both the broader equity market and most of its major peers. The company remains less exposed to exogenous factors, such as momentum trade. The business is changing rapidly and with that I expect the risk-reward ratio to further increase.

Apr 25
Oracle Corporation's (NYSE:ORCL) Intrinsic Value Is Potentially 80% Above Its Share Price

Oracle Corporation's (NYSE:ORCL) Intrinsic Value Is Potentially 80% Above Its Share Price

How far off is Oracle Corporation ( NYSE:ORCL ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

ORCLUS SoftwareUS Market
7D-2.6%-0.1%0.7%
1Y-11.8%-10.7%-10.8%

Return vs Industry: ORCL underperformed the US Software industry which returned -10.3% over the past year.

Return vs Market: ORCL underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is ORCL's price volatile compared to industry and market?
ORCL volatility
ORCL Average Weekly Movement4.1%
Software Industry Average Movement11.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: ORCL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ORCL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977132,000Safra Catzhttps://www.oracle.com

Oracle Corporation provides products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Fusion cloud advertising and customer experience, and NetSuite applications suite. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services.

Oracle Fundamentals Summary

How do Oracle's earnings and revenue compare to its market cap?
ORCL fundamental statistics
Market CapUS$189.89b
Earnings (TTM)US$7.56b
Revenue (TTM)US$41.83b

24.6x

P/E Ratio

4.4x

P/S Ratio

Is ORCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORCL income statement (TTM)
RevenueUS$41.83b
Cost of RevenueUS$8.60b
Gross ProfitUS$33.23b
Other ExpensesUS$25.67b
EarningsUS$7.56b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.83
Gross Margin79.43%
Net Profit Margin18.07%
Debt/Equity Ratio-955.0%

How did ORCL perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

46%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry

47.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ORCL ($69.71) is trading below our estimate of fair value ($133.01)

Significantly Below Fair Value: ORCL is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ORCL is good value based on its PE Ratio (24.6x) compared to the US Software industry average (41.9x).

PE vs Market: ORCL is poor value based on its PE Ratio (24.6x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: ORCL is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: ORCL has negative assets, so we can't compare its PB Ratio to the US Software industry average.

Future Growth

How is Oracle forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

32.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORCL's forecast earnings growth (32.1% per year) is above the savings rate (1.9%).

Earnings vs Market: ORCL's earnings (32.1% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ORCL's revenue (5.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: ORCL's revenue (5.6% 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 (289.7%).

Past Performance

How has Oracle performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORCL has a large one-off loss of $4.6B impacting its February 28 2022 financial results.

Growing Profit Margin: ORCL's current net profit margins (18.1%) are lower than last year (32.3%).

Past Earnings Growth Analysis

Earnings Trend: ORCL's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: ORCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORCL had negative earnings growth (-41.1%) over the past year, making it difficult to compare to the Software industry average (29.6%).

Return on Equity

High ROE: ORCL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

Financial Health

How is Oracle's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ORCL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ORCL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: ORCL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ORCL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: ORCL's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: ORCL's interest payments on its debt are well covered by EBIT (6x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

1.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ORCL's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ORCL's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.5%), ORCL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (51.8%), ORCL's dividend payments are covered by cash flows.

Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.1yrs

Average management tenure

CEO

Safra Catz (59 yo)

2.67yrs

Tenure

US$10,631,223

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's total compensation ($USD10.63M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Safra's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: ORCL's management team is seasoned and experienced (15.1 years average tenure).

Board Members

Experienced Board: ORCL's board of directors are seasoned and experienced ( 15.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

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

Key Information

  • Name: Oracle Corporation
  • Ticker: ORCL
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$189.893b
  • Shares outstanding: 2.67b
  • Website: https://www.oracle.com

Number of Employees

Location

  • Oracle Corporation
  • 2300 Oracle Way
  • Austin
  • Texas
  • 78741
  • United States

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/02/28
Annual Earnings2021/05/31


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.