Oracle Corporation
Oracle Corporation Fundamental Analysis
Oracle Corporation (ORCL) shows strong financial fundamentals with a PE ratio of 24.11, profit margin of 25.30%, and ROE of 57.35%. The company generates $64.5B in annual revenue with moderate year-over-year growth of 8.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ORCL's fundamental strength across five key dimensions:
Efficiency Score
WeakORCL struggles to generate sufficient returns from assets.
Valuation Score
ModerateORCL shows balanced valuation metrics.
Growth Score
ExcellentORCL delivers strong and consistent growth momentum.
Financial Health Score
ModerateORCL shows balanced financial health with some risks.
Profitability Score
ModerateORCL maintains healthy but balanced margins.
Key Financial Metrics
Is ORCL Expensive or Cheap?
P/E Ratio
ORCL trades at 24.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ORCL's PEG of 5.72 indicates potential overvaluation.
Price to Book
The market values Oracle Corporation at 10.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.21 times EBITDA. This is generally considered low.
How Well Does ORCL Make Money?
Net Profit Margin
For every $100 in sales, Oracle Corporation keeps $25.30 as profit after all expenses.
Operating Margin
Core operations generate 30.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $57.35 in profit for every $100 of shareholder equity.
ROA
Oracle Corporation generates $6.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oracle Corporation generates strong operating cash flow of $23.69B, reflecting robust business health.
Free Cash Flow
Oracle Corporation generates weak or negative free cash flow of $-24.92B, restricting financial flexibility.
FCF Per Share
Each share generates $-8.66 in free cash annually.
FCF Yield
ORCL converts -6.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.57
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ORCL Stacks Against Its Sector Peers
| Metric | ORCL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.11 | 34.36 | Better (Cheaper) |
| ROE | 57.35% | 1017.00% | Weak |
| Net Margin | 25.30% | -101936.00% (disorted) | Strong |
| Debt/Equity | 4.21 | 0.45 | Weak (High Leverage) |
| Current Ratio | 1.35 | 6.16 | Neutral |
| ROA | 6.61% | -291075.00% (disorted) | Weak |
ORCL outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oracle Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.15%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
41.35%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
82.44%
Industry Style: Growth, Innovation, High Beta
High Growth