Oracle Stock Analysis, Valuation (NYSE:ORCL)

Add to My Stocks
$49.18 $0.07 (0.14%) ORCL stock closing price Sep 17, 2018 (Closing)

Take a look at Amigobulls Oracle stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for ORCL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Oracle Corporation Stock Rating 4.1/5

Amigobulls ORCL stock analysis takes into account various financial ratios like relative valuation, Oracle revenue, growth and return on equity based on latest quarter 2018 Q4 financial statements. We also check Oracle dividend performance. We compare Oracle valuation with its sector peers to gauge relative attractiveness of ORCL stock. Based on a company's historical fundamentals we arrive at Oracle stock rating which is indicative of the company's financial performance.

Should you buy ORCL stock?

  • The TTM operating margin was good at 34.34 for Oracle.
  • Net margins stood at a healthy 9.6% (average) for Oracle in the Trailing Twelve Months.
  • The Oracle stock currently trades at a price to earnings ratio of 17, compared to the sector average of 25.4. We rate this as a positive.
  • Oracle's return on invested capital of 7.5 is good.
  • The company has a healthy free cash flow margin of 38.1.

Should you sell ORCL stock?

  • With a debt/equity ratio of 1.31, Oracle is highly leveraged in comparison to Computer and Technology peers.
  • The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Computer and Technology sector average of 2.9, making ORCL stock expensive.

Comments on this video and Oracle stock

Investors can use Amigobulls Oracle stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Oracle revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about ORCL stock.