Oracle Stock Analysis (NYSE:ORCL)

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$44.43 $0.1 (0.22%) ORCL stock closing price Apr 21, 2017 (Closing)
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Oracle
Updated on : Apr 21, 2017
previous close
ORCL 44.4 (0%)
NASDAQ 5910.5 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.2%
Operating Profit
Operating Margin:
33.7%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
54.22B
Debt/Equity Ratio:
 1.06
Compared to the industry
Cash Flow
Operating cash flow:
$2.7B
Net Income:
$2.24B
Dividend Yield
ORCL dividend yield:
1.35%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ORCL PS :
4.9
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
21.1%
Return on Equity:
18.4%
Free Cash Flow Margin:
24.5%
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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 (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.

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