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ORCL

Oracle NYSE:ORCL Stock Report

Last Price

US$70.87

Market Cap

US$188.9b

7D

0.7%

1Y

-13.4%

Updated

04 Jul, 2022

Data

Company Financials +
ORCL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends5/6

ORCL Stock Overview

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

Oracle Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Oracle
Historical stock prices
Current Share PriceUS$70.87
52 Week HighUS$106.34
52 Week LowUS$63.76
Beta0.86
1 Month Change-1.28%
3 Month Change-14.55%
1 Year Change-13.38%
3 Year Change19.05%
5 Year Change42.83%
Change since IPO11,797.35%

Recent News & Updates

Jul 01
Oracle (NYSE:ORCL) Will Pay A Dividend Of US$0.32

Oracle (NYSE:ORCL) Will Pay A Dividend Of US$0.32

The board of Oracle Corporation ( NYSE:ORCL ) has announced that it will pay a dividend on the 26th of July, with...

Jun 27

Oracle: A GARP Name For This Very Perilous Market

Oracle reported a quarter that marked its return to double-digit, constant currency organic growth. The company has also completed its planned acquisition of Cerner. Company's management was quite forthright in proclaiming the company had achieved a growth inflection. Shares, with a forward P/E of less than 12X and a free cash flow yield of almost 4%, certainly do not reflect any growth inflection. The likely cost synergies of the Cerner transaction have yet to be translated into consensus estimates, further enhancing the outlook for the shares.

Shareholder Returns

ORCLUS SoftwareUS Market
7D0.7%-3.1%-2.2%
1Y-13.4%-23.6%-19.1%

Return vs Industry: ORCL exceeded the US Software industry which returned -23.6% over the past year.

Return vs Market: ORCL exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is ORCL's price volatile compared to industry and market?
ORCL volatility
ORCL Average Weekly Movement5.5%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: ORCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ORCL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977143,000Safra Catzhttps://www.oracle.com

Oracle Corporation offers 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 Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. 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$188.86b
Earnings (TTM)US$6.72b
Revenue (TTM)US$42.44b

28.1x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORCL income statement (TTM)
RevenueUS$42.44b
Cost of RevenueUS$8.88b
Gross ProfitUS$33.56b
Other ExpensesUS$26.85b
EarningsUS$6.72b

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.52
Gross Margin79.08%
Net Profit Margin15.83%
Debt/Equity Ratio-1,315.2%

How did ORCL perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

51%

Payout Ratio

Does ORCL pay a reliable dividends?

See ORCL dividend history and benchmarks
When do you need to buy ORCL by to receive an upcoming dividend?
Oracle dividend dates
Ex Dividend DateJul 11 2022
Dividend Pay DateJul 26 2022
Days until Ex dividend5 days
Days until Dividend pay date20 days

Does ORCL pay a reliable dividends?

See ORCL dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ORCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ORCL?

Other financial metrics that can be useful for relative valuation.

ORCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.8x
Enterprise Value/EBITDA13.4x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does ORCL's PE Ratio compare to its peers?

ORCL PE Ratio vs Peers
The above table shows the PE ratio for ORCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average139.2x
NOW ServiceNow
435.4x38.0%US$97.1b
VMW VMware
29.4x16.9%US$48.1b
FTNT Fortinet
72.2x20.7%US$46.0b
CHKP Check Point Software Technologies
19.8x4.0%US$15.9b
ORCL Oracle
28.1x18.3%US$188.9b

Price-To-Earnings vs Peers: ORCL is good value based on its Price-To-Earnings Ratio (28.1x) compared to the peer average (139.2x).


Price to Earnings Ratio vs Industry

How does ORCL's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: ORCL is good value based on its Price-To-Earnings Ratio (28.1x) compared to the US Software industry average (38.2x)


Price to Earnings Ratio vs Fair Ratio

What is ORCL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ORCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.1x
Fair PE Ratio43.9x

Price-To-Earnings vs Fair Ratio: ORCL is good value based on its Price-To-Earnings Ratio (28.1x) compared to the estimated Fair Price-To-Earnings Ratio (43.9x).


Share Price vs Fair Value

What is the Fair Price of ORCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORCL ($70.87) is trading below our estimate of fair value ($136)

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


Price to Earnings Growth Ratio

PEG Ratio: ORCL is poor value based on its PEG Ratio (1.5x)


Discover undervalued companies

Future Growth

How is Oracle forecast to perform in the next 1 to 3 years based on estimates from 21 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


18.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORCL's forecast earnings growth (18.3% per year) is above the savings rate (1.9%).

Earnings vs Market: ORCL's earnings (18.3% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: ORCL's revenue (8.2% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: ORCL's revenue (8.2% 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 (146.4%).


Discover growth companies

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


9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORCL has a large one-off loss of $4.9B impacting its May 31 2022 financial results.

Growing Profit Margin: ORCL's current net profit margins (15.8%) are lower than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: ORCL's earnings have grown by 9% 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 (-51.1%) over the past year, making it difficult to compare to the Software industry average (26.8%).


Return on Equity

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


Discover strong past performing companies

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 (12.6%).

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


Balance Sheet


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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

  • Cash Flow Coverage


1.81%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 05 2022Ex Dividend DateJul 11 2022Dividend Pay DateJul 26 202215 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ORCL's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: ORCL's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (4.25%).


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 reasonable payout ratio (51.5%), ORCL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (67.8%), ORCL's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

15.3yrs

Average management tenure


CEO

Safra Catz (60 yo)

2.83yrs

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 ($USD10.63M) is about average for companies of similar size in the US market ($USD13.34M).

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 (15.3 years average tenure).


Board Members

Experienced Board: ORCL's board of directors are seasoned and experienced ( 15.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$188.863b
  • Shares outstanding: 2.66b
  • 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 Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/05/31
Annual Earnings2022/05/31


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.