NYSE:ORCL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Oracle's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ORCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ORCL

3.7%

US Software

2.6%

US Market


1 Year Return

4.0%

ORCL

42.3%

US Software

15.4%

US Market

Return vs Industry: ORCL underperformed the US Software industry which returned 45.7% over the past year.

Return vs Market: ORCL underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

ORCLIndustryMarket
7 Day-0.4%3.7%2.6%
30 Day-1.9%2.8%6.1%
90 Day5.5%18.1%16.6%
1 Year5.9%4.0%43.4%42.3%17.8%15.4%
3 Year19.0%13.1%160.3%151.3%43.9%34.7%
5 Year53.3%41.3%251.1%230.0%76.2%57.3%

Price Volatility Vs. Market

How volatile is Oracle's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORCL ($55.5) is trading below our estimate of fair value ($56.5)

Significantly Below Fair Value: ORCL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ORCL is good value based on its PE Ratio (17.6x) compared to the US Software industry average (58.9x).

PE vs Market: ORCL is good value based on its PE Ratio (17.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ORCL is poor value based on its PEG Ratio (11.8x)


Price to Book Ratio

PB vs Industry: ORCL is overvalued based on its PB Ratio (14.1x) compared to the US Software industry average (7.1x).


Next Steps

Future Growth

How is Oracle forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORCL's forecast earnings growth (1.5% per year) is below the savings rate (2.2%).

Earnings vs Market: ORCL's earnings (1.5% per year) are forecast to grow slower than the US market (22.6% per year).

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

Revenue vs Market: ORCL's revenue (1.6% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ORCL's revenue (1.6% 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 (45.8%).


Next Steps

Past Performance

How has Oracle performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORCL has high quality earnings.

Growing Profit Margin: ORCL's current net profit margins (25.9%) are lower than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: ORCL's earnings have grown by 0.6% 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 (-8.5%) over the past year, making it difficult to compare to the Software industry average (5.9%).


Return on Equity

High ROE: Whilst ORCL's Return on Equity (79.7%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Oracle's financial position?


Financial Position Analysis

Short Term Liabilities: ORCL's short term assets ($52.1B) exceed its short term liabilities ($17.2B).

Long Term Liabilities: ORCL's short term assets ($52.1B) do not cover its long term liabilities ($85.5B).


Debt to Equity History and Analysis

Debt Level: ORCL's debt to equity ratio (563.1%) is considered high.

Reducing Debt: ORCL's debt to equity ratio has increased from 85.5% to 563.1% over the past 5 years.

Debt Coverage: ORCL's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: ORCL's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORCL's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: ORCL's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.48%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.4%), ORCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORCL's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Safra Catz (58 yo)

0.92

Tenure

US$965,981

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 ($USD965.98K) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Safra's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lawrence Ellison
Co-Founder5.92yrsUS$1.66m37.11%
$ 63.7b
Safra Catz
CEO & Director0.92yrUS$965.98k0.036%
$ 62.6m
Jeffrey Henley
Vice Chairman of the Board5.92yrsUS$4.21m0.063%
$ 109.0m
Dorian Daley
Executive VP & General Counsel5.33yrsUS$8.00m0.0069%
$ 11.9m
Edward Screven
Executive VP & Chief Corporate Architect5.25yrsUS$34.17m0.078%
$ 133.7m
Douglas Kehring
Executive VP of Corporate Operations & Head of Corporate Developmentno datano datano data
William West
Executive VP5.33yrsno data0.0036%
$ 6.1m
Mark Sunday
Senior VP & Chief Information Officerno datano datano data
Ken Bond
Senior Vice President of Investor Relationsno datano datano data
Rupal Hollenbeck
Chief Marketing Officer1.58yrsno datano data
Joyce Westerdahl
Executive Vice President of Human Resourcesno datano datano data
John Hall
Senior Vice President of Oracle University21.58yrsno datano data

5.3yrs

Average Tenure

61yo

Average Age

Experienced Management: ORCL's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lawrence Ellison
Co-Founder5.92yrsUS$1.66m37.11%
$ 63.7b
Safra Catz
CEO & Director0.92yrUS$965.98k0.036%
$ 62.6m
Jeffrey Henley
Vice Chairman of the Board5.92yrsUS$4.21m0.063%
$ 109.0m
Bruce Chizen
Lead Independent Directorno dataUS$563.83k0.0020%
$ 3.4m
Michael Boskin
Independent Director26.33yrsUS$691.32k0.0023%
$ 4.0m
George Conrades
Independent Director12.58yrsUS$706.32k0.0014%
$ 2.5m
Naomi Seligman
Independent Director14.75yrsUS$470.06k0.0017%
$ 2.9m
Jeffrey Berg
Independent Director23.5yrsUS$578.83k0.0066%
$ 11.3m
Leon Panetta
Independent Director5.58yrsUS$485.06k0.0013%
$ 2.2m
Charles Moorman
Independent Director2.25yrsUS$465.85k0.0016%
$ 2.7m
William Parrett
Independent Director2.25yrsUS$465.85k0.00054%
$ 927.6k
Renee James
Director4.67yrsUS$445.06k0.0014%
$ 2.3m

5.9yrs

Average Tenure

74.5yo

Average Age

Experienced Board: ORCL's board of directors are considered experienced (5.9 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oracle Corporation
  • Ticker: ORCL
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$171.785b
  • Shares outstanding: 3.07b
  • Website: https://www.oracle.com

Number of Employees


Location

  • Oracle Corporation
  • 500 Oracle Parkway
  • Redwood City
  • California
  • 94065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORCLNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1986
ORCL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1986
ORCDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1986
ORCXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1986
ORCLSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMar 1986
959184SWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1986
ORA-UETLX (Eurotlx)YesCommon StockITEURMar 1986
ORCLWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1986
ORCLBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/3 USD0.01ARARSSep 2000
ORCL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLDec 2011

Biography

Oracle Corporation provides products and services that address enterprise information technology environments worldwide. The company’s cloud and license business engages in the sale, marketing, and deliver ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 23:38
End of Day Share Price2020/08/05 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.