About Oracle Corporation
Oracle Corporation (ORCL) is a Technology company in the Services-Prepackaged Software industry with a market capitalisation of $422B. The stock trades at 24.83x trailing earnings and yields 1.38%.
- Sector
- Technology
- Industry
- Services-Prepackaged Software
- Market cap
- $422B
- P/E ratio
- 24.83
- EPS (TTM)
- $5.83
- Revenue (TTM)
- $67.4B
- Free cash flow
- -$23.7B
- Profit margin
- 25.4%
- Dividend yield
- 1.38%
- Shares outstanding
- 2.9B
Financial health: Fair6.5/10
6 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: 40.2% (Strong, benchmark > 15%) — Earns 40.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 65.8% (Strong, benchmark > 40%) — Keeps 65.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 25.4% (Strong, benchmark > 10%) — Turns 25.4% 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: 17.3% (Strong, benchmark > 10%) — Revenue changed 17.3% year on year, comfortably past the > 10% mark.
- Earnings growth: 37.3% (Strong, benchmark > 10%) — Earnings changed 37.3% year on year, comfortably past the > 10% mark.
- Payout ratio: 33.9% (Strong, benchmark < 60%) — Pays out 33.9% of earnings as dividends, leaving room to keep paying.