| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 4/6 |
| Past Performance | 1/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
ORCL Stock Overview
Oracle Corporation offers products and services that address enterprise information technology environments worldwide.
Rewards
Risk Analysis
Oracle Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$71.99 |
| 52 Week High | US$106.34 |
| 52 Week Low | US$63.76 |
| Beta | 0.86 |
| 1 Month Change | 0.28% |
| 3 Month Change | -12.34% |
| 1 Year Change | -13.35% |
| 3 Year Change | 20.79% |
| 5 Year Change | 44.33% |
| Change since IPO | 11,985.37% |
Recent News & Updates
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...
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
| ORCL | US Software | US Market | |
|---|---|---|---|
| 7D | 5.0% | 2.9% | 0.3% |
| 1Y | -13.3% | -22.4% | -18.4% |
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 -19.1% over the past year.
Price Volatility
| ORCL volatility | |
|---|---|
| ORCL Average Weekly Movement | 5.5% |
| Software Industry Average Movement | 10.9% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.3% |
Stable Share Price: ORCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ORCL's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1977 | 143,000 | Safra Catz | https://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
| ORCL fundamental statistics | |
|---|---|
| Market Cap | US$191.85b |
| Earnings (TTM) | US$6.72b |
| Revenue (TTM) | US$42.44b |
28.6x
P/E Ratio4.5x
P/S RatioIs ORCL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ORCL income statement (TTM) | |
|---|---|
| Revenue | US$42.44b |
| Cost of Revenue | US$8.88b |
| Gross Profit | US$33.56b |
| Other Expenses | US$26.85b |
| Earnings | US$6.72b |
Last Reported Earnings
May 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.52 |
| Gross Margin | 79.08% |
| Net Profit Margin | 15.83% |
| Debt/Equity Ratio | -1,315.2% |
How did ORCL perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield51%
Payout RatioDoes ORCL pay a reliable dividends?
See ORCL dividend history and benchmarks| Oracle dividend dates | |
|---|---|
| Ex Dividend Date | Jul 11 2022 |
| Dividend Pay Date | Jul 26 2022 |
| Days until Ex dividend | 5 days |
| Days until Dividend pay date | 20 days |
Does ORCL pay a reliable dividends?
See ORCL dividend history and benchmarksValuation
Is ORCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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.
| What is ORCL's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$191.85b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 5.9x |
| Enterprise Value/EBITDA | 13.5x |
| PEG Ratio | 1.6x |
Price to Earnings Ratio vs Peers
How does ORCL's PE Ratio compare to its peers?
| ORCL PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 142.3x | ||
NOW ServiceNow | 445.8x | 38.0% | US$99.4b |
VMW VMware | 29.4x | 16.9% | US$48.1b |
FTNT Fortinet | 74.2x | 20.7% | US$47.4b |
CHKP Check Point Software Technologies | 19.7x | 4.0% | US$15.8b |
ORCL Oracle | 28.6x | 18.3% | US$191.8b |
Price-To-Earnings vs Peers: ORCL is good value based on its Price-To-Earnings Ratio (28.6x) compared to the peer average (142.3x).
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 (28.6x) 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 28.6x |
| Fair PE Ratio | 44x |
Price-To-Earnings vs Fair Ratio: ORCL is good value based on its Price-To-Earnings Ratio (28.6x) compared to the estimated Fair Price-To-Earnings Ratio (44x).
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 ($71.99) is trading below our estimate of fair value ($136.4)
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 (1.6x)
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
4/6Future 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 (12.8% 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 (7.8% 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
1/6Past 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
1/6Financial 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
Discover healthy companies
Dividend
What is Oracle current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ORCL's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: ORCL's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.24%).
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 ($USD13.41M).
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$191.848b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/05 00:00 |
| End of Day Share Price | 2022/07/05 00:00 |
| Earnings | 2022/05/31 |
| Annual Earnings | 2022/05/31 |
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.