Oracle Stock Analysis (NYSE:ORCL)

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$42.06 $0.47 (1.13%) ORCL stock closing price Feb 17, 2017 (Closing)
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Oracle
Updated on : Feb 17, 2017
previous close
ORCL 42.1 (0%)
NASDAQ 5838.6 (0%)
Closing Price On: Feb 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.3%
Operating Profit
Operating Margin:
34%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
54.24B
Debt/Equity Ratio:
 1.11
Compared to the industry
Cash Flow
Operating cash flow:
$1.09B
Net Income:
$2.03B
Dividend Yield
ORCL dividend yield:
1.43%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Long Term Growth
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ORCL PS :
4.6
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
22%
Return on Equity:
18.6%
Free Cash Flow Margin:
3.6%
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Oracle Analysis Video

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View Oracle stock analysis video. This is our ORCL analyst opinion covering the buy and sell arguments for ORCL stock.

Oracle Corporation Stock Rating (3.9/5)

Our Oracle stock opinion is based on fundamentals of the company. This Oracle stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy ORCL stock?

  • Oracle's average operating margin of 34% was exceptional.
  • Net margins stood at a healthy 23.7% (average) for Oracle in the Trailing Twelve Months.
  • The price to earnings multiple of 17.6 is attractive when compared with the industry average PE ratio of 25.5.
  • Oracle has an attractive ROIC (Return on Invested Capital) of 22%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Oracle at 18.6%.

Should you sell ORCL stock?

  • Over the last 5 years, the company registered a poor revenue growth of .
  • Oracle is debt laden and has a high debt/equity ratio of  1.11.
  • Cash flow from operations is 0.5 times net income which is a negative signal.
  • The company is trading at a price to sales multiple of 4.6, which is higher in comparison to the Computer-Software industry average of 2.6, making ORCL stock expensive.

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