About Oracle Corporation
Oracle Corporation offers products and services that build, run and support enterprise information technology frameworks worldwide. Its Oracle cloud software as a service offering includes various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas.
Oracle Corporation (ORCL) is a Technology company in the Software - Infrastructure industry with a market capitalisation of $432.9B. The stock trades at 23.52x trailing earnings and yields 1.33%.
- Sector
- Technology
- Industry
- Software - Infrastructure
- Market cap
- $432.9B
- P/E ratio
- 23.52
- Forward P/E
- 13.67
- EPS (TTM)
- $6.39
- Revenue (TTM)
- $71.8B
- Free cash flow
- -$41.1B
- Profit margin
- 26.4%
- Dividend yield
- 1.33%
- Beta
- 1.73
- Shares outstanding
- 2.9B
Financial health: Fair6.8/10
7 strengths, 3 concerns. Weakest points: debt to equity, net debt vs cash flow, free cash flow.
- Debt to equity: 3.05 (Concern, benchmark < 0.5) — Debt of 3.05x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: — (Concern, benchmark < 4 years) — Carries $97.6B of net debt while free cash flow is negative, so the debt is not being repaid from the business.
- Current ratio: 1.12 (Watch, benchmark > 1.5) — Short-term assets cover 1.12x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 41.2% (Strong, benchmark > 15%) — Earns 41.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 64.0% (Strong, benchmark > 40%) — Keeps 64.0% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 26.4% (Strong, benchmark > 10%) — Turns 26.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: -$23.7B (Concern, benchmark positive) — Burned $23.7B of cash after capital spending, so operations did not fund themselves. It has deteriorated over the last 4 years.
- Revenue growth: 29.6% (Strong, benchmark > 10%) — Revenue changed 29.6% year on year, comfortably past the > 10% mark.
- Earnings growth: 54.5% (Strong, benchmark > 10%) — Earnings changed 54.5% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.85 (Strong, benchmark < 1) — At 0.85, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 31.4% (Strong, benchmark < 60%) — Pays out 31.4% of earnings as dividends, leaving room to keep paying.