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 (4/5)
Our Oracle stock opinion is based on fundamentals of the company. This Oracle stock analysis is based on latest Q3 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 33.7% over the last 4 quarters.
- Net margins came in at average 23.8% for Oracle over the last twelve months.
- ORCL stock is trading at an earnings multiple of 18.3 which is better than the industry average of 25.6.
- Oracle has an attractive ROIC (Return on Invested Capital) of 21.1%
- Oracle has a good Return On Equity (ROE) of 18.4%.
- The company has a healthy free cash flow margin of 24.5%.
Should you sell ORCL stock?
- Long term revenue growth of 0.2% over the past 5 years has been disappointing.
- Oracle is debt laden and has a high debt/equity ratio of 1.06.
- The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Computer-Software industry average of 2.6, making ORCL stock expensive.