Oracle Stock Analysis (NYSE:ORCL)
Oracle Analysis Video
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 had a healthy average operating margin of 34% over the last 4 quarters.
- LTM Net margins were good at 23.7% for Oracle.
- ORCL stock is trading at an earnings multiple of 16.6 which is better than the industry average of 25.3.
- Oracle generates a high return on invested capital of 22%.
- The LTM ROE of 18.6% for Oracle is attractive.
Should you sell ORCL stock?
- Long term revenue growth of over the past 5 years has been disappointing.
- Oracle has a debt/equity ratio of 1.11, which is worse than the average in the Computer and Technology sector.
- The company has an operating cash flow which is 0.5 times the net income. This is not a healthy sign.
- ORCL stock is trading at a PS multiple of 4.4, which is a negative when compared to the Computer-Software industry average multiple of 2.4.