(ORCL) Oracle - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 562.583m USD | Total Return: 18.1% in 12m
Industry Rotation: +18.2
Avg Turnover: 4.38B
EPS Trend: 61.7%
Qual. Beats: 0
Rev. Trend: 92.9%
Qual. Beats: 1
Warnings
High Debt while negative Cash Flow
Tailwinds
No distinct edge detected
Oracle Corporation (NYSE: ORCL) is a global provider of enterprise information technology solutions, specializing in cloud-based software as a service (SaaS) and infrastructure technologies. Its product suite includes enterprise resource planning (ERP), supply chain management (SCM), and human capital management (HCM) through platforms like Oracle Fusion and NetSuite. The company also maintains a significant presence in database management with Oracle Database and MySQL, alongside infrastructure services such as cloud compute, storage, and networking.
Operating within the systems software sub-industry, Oracle utilizes a high-margin recurring revenue model driven by cloud license support and software subscriptions. The enterprise software sector is characterized by high switching costs, as integrated ERP and database systems often become deeply embedded in a clients core operational workflow. Beyond software, Oracle provides engineered hardware systems and consulting services to government agencies, educational institutions, and private enterprises.
For a more detailed analysis of these fundamentals, consider exploring the data available on ValueRay.
- Cloud infrastructure revenue growth accelerates through AI training and inference demand
- Oracle Fusion and NetSuite ERP expansion drives high-margin recurring subscription revenue
- Strategic cloud partnerships with Azure and Google expand database market reach
- High capital expenditure requirements for data center expansion pressure short-term free cash flow
- Integration of Oracle Health and Cerner optimizes vertical software revenue streams
| Net Income: 16.21b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.10 > 0.02 and ΔFCF/TA -13.69 > 1.0 |
| NWC/Revenue: 22.06% < 20% (prev 0.88%; Δ 21.18% < -1%) |
| CFO/TA 0.10 > 3% & CFO 23.51b > Net Income 16.21b |
| Net Debt (123.71b) to EBITDA (29.31b): 4.22 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.91b) vs 12m ago 1.39% < -2% |
| Gross Margin: 66.44% > 18% (prev 0.71%; Δ 6.57k% > 0.5%) |
| Asset Turnover: 31.52% > 50% (prev 34.57%; Δ -3.05% > 0%) |
| Interest Coverage Ratio: 5.44 > 6 (EBITDA TTM 29.31b / Interest Expense TTM 4.14b) |
| A: 0.06 (Total Current Assets 54.87b - Total Current Liabilities 40.74b) / Total Assets 245.24b |
| B: -0.03 (Retained Earnings -7.09b / Total Assets 245.24b) |
| C: 0.11 (EBIT TTM 22.52b / Avg Total Assets 203.31b) |
| D: 0.16 (Book Value of Equity 33.54b / Total Liabilities 206.19b) |
| Altman-Z'' Score: 1.20 = BB |
| DSRI: 1.16 (Receivables 10.72b/8.05b, Revenue 64.08b/55.78b) |
| GMI: 1.07 (GM 66.44% / 71.12%) |
| AQI: 0.71 (AQ_t 0.44 / AQ_t-1 0.62) |
| SGI: 1.15 (Revenue 64.08b / 55.78b) |
| TATA: -0.03 (NI 16.21b - CFO 23.51b) / TA 245.24b) |
| Beneish M-Score: -2.93 (Cap -4..+1) = A |
Over the past week, the price has changed by -3.73%, over one month by +5.09%, over three months by +19.91% and over the past year by +18.07%.
- StrongBuy: 20
- Buy: 4
- Hold: 15
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 242.7 | 30.1% |
P/E Forward = 24.3902
P/S = 8.7799
P/B = 16.8022
P/EG = 1.2395
Revenue TTM = 64.08b USD
EBIT TTM = 22.52b USD
EBITDA TTM = 29.31b USD
Long Term Debt = 124.72b USD (from longTermDebt, last quarter)
Short Term Debt = 13.22b USD (from shortTermDebt, last quarter)
Debt = 162.16b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 123.71b USD (from netDebt column, last quarter)
Enterprise Value = 685.62b USD (562.58b + Debt 162.16b - CCE 39.13b)
Interest Coverage Ratio = 5.44 (Ebit TTM 22.52b / Interest Expense TTM 4.14b)
EV/FCF = -27.72x (Enterprise Value 685.62b / FCF TTM -24.74b)
FCF Yield = -3.61% (FCF TTM -24.74b / Enterprise Value 685.62b)
FCF Margin = -38.60% (FCF TTM -24.74b / Revenue TTM 64.08b)
Net Margin = 25.30% (Net Income TTM 16.21b / Revenue TTM 64.08b)
Gross Margin = 66.44% ((Revenue TTM 64.08b - Cost of Revenue TTM 21.50b) / Revenue TTM)
Gross Margin QoQ = 62.16% (prev 66.53%)
Tobins Q-Ratio = 2.80 (Enterprise Value 685.62b / Total Assets 245.24b)
Interest Expense / Debt = 0.73% (Interest Expense 1.18b / Debt 162.16b)
Taxrate = 15.55% (695.0m / 4.47b)
NOPAT = 19.01b (EBIT 22.52b * (1 - 15.55%))
Current Ratio = 1.35 (Total Current Assets 54.87b / Total Current Liabilities 40.74b)
Debt / Equity = 4.21 (Debt 162.16b / totalStockholderEquity, last quarter 38.49b)
Debt / EBITDA = 4.22 (Net Debt 123.71b / EBITDA 29.31b)
Debt / FCF = -5.00 (negative FCF - burning cash) (Net Debt 123.71b / FCF TTM -24.74b)
Total Stockholder Equity = 28.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.97% (Net Income 16.21b / Total Assets 245.24b)
RoE = 57.35% (Net Income TTM 16.21b / Total Stockholder Equity 28.26b)
RoCE = 14.72% (EBIT 22.52b / Capital Employed (Equity 28.26b + L.T.Debt 124.72b))
RoIC = 14.23% (NOPAT 19.01b / Invested Capital 133.66b)
WACC = 10.14% (E(562.58b)/V(724.75b) * Re(12.89%) + D(162.16b)/V(724.75b) * Rd(0.73%) * (1-Tc(0.16)))
Discount Rate = 12.89% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 1.52%
[DCF] Fair Price = unknown (Cash Flow -24.74b)
EPS Correlation: 61.70 | EPS CAGR: 4.09% | SUE: 0.32 | # QB: 0
Revenue Correlation: 92.91 | Revenue CAGR: 10.45% | SUE: 1.75 | # QB: 1
EPS next Quarter (2026-08-31): EPS=1.68 | Chg30d=-0.15% | Revisions=+0% | Analysts=27
EPS current Year (2026-05-31): EPS=7.45 | Chg30d=+0.03% | Revisions=+33% | GrowthEPS=+23.6% | GrowthRev=+17.1%
EPS next Year (2027-05-31): EPS=8.03 | Chg30d=+0.75% | Revisions=+0% | GrowthEPS=+7.8% | GrowthRev=+31.9%
[Analyst] Revisions Ratio: +33%