Oracle Financial Services Software Limited
Oracle Financial Services Software Limited Fundamental Analysis
Oracle Financial Services Software Limited (OFSS.NS) shows moderate financial fundamentals with a PE ratio of 31.97, profit margin of 34.40%, and ROE of 34.83%. The company generates $76.7B in annual revenue with moderate year-over-year growth of 7.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OFSS.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOFSS.NS demonstrates superior asset utilization.
Valuation Score
WeakOFSS.NS trades at a premium to fair value.
Growth Score
ModerateOFSS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentOFSS.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentOFSS.NS achieves industry-leading margins.
Key Financial Metrics
Is OFSS.NS Expensive or Cheap?
P/E Ratio
OFSS.NS trades at 31.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OFSS.NS's PEG of 3.00 indicates potential overvaluation.
Price to Book
The market values Oracle Financial Services Software Limited at 10.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.93 times EBITDA. This signals the market has high growth expectations.
How Well Does OFSS.NS Make Money?
Net Profit Margin
For every $100 in sales, Oracle Financial Services Software Limited keeps $34.40 as profit after all expenses.
Operating Margin
Core operations generate 45.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.83 in profit for every $100 of shareholder equity.
ROA
Oracle Financial Services Software Limited generates $26.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oracle Financial Services Software Limited produces operating cash flow of $15.57B, showing steady but balanced cash generation.
Free Cash Flow
Oracle Financial Services Software Limited generates strong free cash flow of $15.19B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $174.54 in free cash annually.
FCF Yield
OFSS.NS converts 1.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.35
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How OFSS.NS Stacks Against Its Sector Peers
| Metric | OFSS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.97 | 36.58 | Better (Cheaper) |
| ROE | 34.83% | 1023.00% | Weak |
| Net Margin | 34.40% | 5884881527.00% | Weak |
| Debt/Equity | 0.00 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 5.44 | 4.99 | Strong Liquidity |
| ROA | 26.57% | -295287.00% (disorted) | Strong |
OFSS.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oracle Financial Services Software Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.50%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
60.63%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
42.62%
Industry Style: Growth, Innovation, High Beta
High Growth