Oracle Stock Analysis (NYSE:ORCL)

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$39.68 $0.19 (0.48%) ORCL stock closing price Jan 23, 2017 (Closing)
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Oracle
Updated on : Jan 23, 2017
previous close
ORCL 39.7 (0%)
NASDAQ 5552.9 (0%)
Closing Price On: Jan 23, 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:
4.8%
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:
1.51%
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 :
4.4
Industry PS :
2.4
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 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.

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