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'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.