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ORCL

Oracle NYSE:ORCL Stock Report

Last Price

US$63.45

Market Cap

US$171.1b

7D

-8.1%

1Y

-30.3%

Updated

26 Sep, 2022

Data

Company Financials +
ORCL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
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 Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Oracle
Historical stock prices
Current Share PriceUS$63.45
52 Week HighUS$106.34
52 Week LowUS$63.39
Beta0.86
1 Month Change-15.00%
3 Month Change-7.48%
1 Year Change-30.31%
3 Year Change15.30%
5 Year Change30.02%
Change since IPO10,551.71%

Recent News & Updates

Sep 27

Oracle: Hits A New Low, Outperformed During 3 Prior Recessions, Buy

Summary Oracle outperformed the S&P 500 and Nasdaq indices during the last three recessions in the early 1990s, the Internet recession in 2001-2002, and the great financial crisis of 2008-2009. Oracle revenue is predictable even during tough times, given its mission-critical products are a must-have for many of its customers. The Autonomous DB upgrade cycle and OCI growth should drive Oracle revenue and earnings, driving the stock higher. We expect Oracle to transition its Cerner customers to OCI or its Cloud@Customer platforms, driving its OCI business for the next few years. Oracle stock is trading at a discount to the large-cap peer group. Oracle is trading around 12x C2023 EPS of $5.35 versus the peer group average of 19.8x. Oracle Corporation (ORCL) is a remarkably resilient company, especially during recessionary times, and its products are often considered mission critical by its customers. Over the last twelve months, Oracle began seeing revenue acceleration, driven by Cloud and the best database performance over five years. Oracle's database customers are on the path to upgrading their existing database software with the newer Autonomous Database version, driving revenue and EPS. Oracle's revenue base is sticky and has a large recurring revenue stream. More than 70% of its revenue is recurring/renewable. Organic revenue growth will likely accelerate over the next 12-24 months, driven by cloud revenue and the upgrade of the database across the install base. Revenue could reach high-single digits from the current mid-single digits, led mostly by the database upgrade cycle as well as the performance of OCI (Oracle Cloud Infrastructure). Many customers who previously bought infrastructure from the likes of Dell, HP, IBM, and Hitachi now use OCI or Cloud@customer to deploy their database infrastructure. Oracle shares have declined 27% YTD and have hit a fresh 52-week low of about $63. Oracle is down about 40% from its recent high of $106. Oracle stock is cheap, trading at around 11.9x on C2023 EPS versus the peer group that is trading close to 19.8x. Given our confidence and the durability of Oracle's business, we recommend buying shares here. Database to drive growth Oracle remains the market leader and is considered a gold standard in relational databases. Millions of applications are built on top of the Oracle database and are considered many organizations' core infrastructure. Most of Oracle's customers are running an older database version and are now due for an upgrade. Oracle database contributes about 50% of revenue. The latest version of the core database product, dubbed the Autonomous Database, was launched four years ago, followed by version 2, which was launched a year later. The Autonomous database is a mixture of traditional database and machine learning, built to automate the whole swathe of operations. Since the Oracle database remains mission-critical in most organizations, customers upgrade to the newer version after most of the bugs within the software have been ironed out. With the newer database now much more stable, we believe many organizations will upgrade their existing installations over the coming years, driving growth for the company. We believe the newer version is much more efficient and easy to maintain, and the TCO (total cost of ownership) is lower, given that it can self-tune and self-repair without needing the help of a database administrator. The database uses "adaptive machine learning to automatically upgrade, patch, and tune itself " without an administrator's help. In addition, the software runs in the Cloud, either the public or private Cloud, making it much more cost-effective. Oracle Cloud Infrastructure is another driver Oracle Cloud Infrastructure ((OCI)) service offers servers, storage, network, and application services via a global network of data centers. OCI is designed to provide mission-critical workloads an easy path to migrate from on-premises deployment to the public Cloud. We expect OCI to grow rapidly as on-premises database deployments are slowly moved over to OCI in the coming years. Oracle's public cloud business reached a $3.2 billion run rate in F4Q22. Customer can deploy their Oracle instances on the public OCI or deploy them on Cloud@Customer formats. Requirements for low latency and performance, regulatory compliance, and data sovereignty issues prevent companies from using the public Cloud. In those instances, Oracle provides a solution called Cloud@Customer to deploy applications within their data centers. Cloud@Customer is a solution that is deployed within the customer data center. Over the next three to five years, we expect OCI and Cloud@Customer to drive growth for the company, driven by an upgrade to the Autonomous Database. In addition, we expect Oracle to move recently acquired Cerner customers to OCI. Oracle outperformed the indices during the past three recessions During the past recessions/market downturns, Oracle outperformed the Nasdaq and S&P500 by a wide margin. During the recession of the great financial crisis, Oracle appreciated almost 83%, Nasdaq appreciated almost 10%, while S&P declined 11%. During the Internet bubble recession between 1999 and the end of 2003, Oracle stock appreciated 84%, while Nasdaq declined almost 9%, and S&P declined almost 10%. Similarly, Oracle stock outperformed S&P and Nasdaq indices during the Gulf War and the accompanying recession. We believe Oracle is a safer stock to own during market turbulence since its products are considered mission-critical by most of its customer base. Oracle revenues are stable with predictable revenue and earnings even during tough economic times. The following charts illustrate Oracle's performance during the last three recessions. Ycharts Ycharts Ycharts Valuation Oracle is a cheap stock when compared to our large-cap peer. On a P/E basis, Oracle is currently trading around 12x C2023 EPS of $5.35 compared to the peer group trading at 19.8x. On an EV/Sales basis, Oracle is slightly more expensive than the peer group of 4.4x. And on a growth-adjusted basis, Oracle is trading in line with its peer group and is trading at 0.5x. We recommend investors buy the stock at current prices as we expect it to outperform the peer group. Refinitiv & Techstockpros Word on Wall Street: The sentiment on Oracle from the sell-side analysts is mainly neutral. Out of the 32 analysts covering the stock, ten analysts are buy-rated, twenty analysts are hold-rated, and two analysts are sell-rated. The median price target is $89, and the mean is about $90. The stock is currently trading around $63, for an upside from 40% to 42%. The following chart illustrates sell-side ratings and price targets.

Sep 16
Oracle (NYSE:ORCL) Will Pay A Dividend Of $0.32

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

The board of Oracle Corporation ( NYSE:ORCL ) has announced that it will pay a dividend on the 25th of October, with...

Shareholder Returns

ORCLUS SoftwareUS Market
7D-8.1%-4.9%-6.9%
1Y-30.3%-34.3%-23.7%

Return vs Industry: ORCL exceeded the US Software industry which returned -35.4% over the past year.

Return vs Market: ORCL underperformed the US Market which returned -23% over the past year.

Price Volatility

Is ORCL's price volatile compared to industry and market?
ORCL volatility
ORCL Average Weekly Movement3.4%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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

Volatility Over Time: ORCL's weekly volatility (3%) 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 Corporation Fundamentals Summary

How do Oracle's earnings and revenue compare to its market cap?
ORCL fundamental statistics
Market CapUS$171.07b
Earnings (TTM)US$5.81b
Revenue (TTM)US$44.16b

29.5x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORCL income statement (TTM)
RevenueUS$44.16b
Cost of RevenueUS$9.81b
Gross ProfitUS$34.35b
Other ExpensesUS$28.54b
EarningsUS$5.81b

Last Reported Earnings

Aug 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.15
Gross Margin77.78%
Net Profit Margin13.15%
Debt/Equity Ratio-1,680.6%

How did ORCL perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

59%

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 DateOct 11 2022
Dividend Pay DateOct 25 2022
Days until Ex dividend13 days
Days until Dividend pay date27 days

Does ORCL pay a reliable dividends?

See ORCL dividend history and benchmarks