Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- ORACLE CORP has improved earnings per share by 13.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ORACLE CORP increased its bottom line by earning $1.97 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $1.97).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 10.5% when compared to the same quarter one year prior, going from $1,840.00 million to $2,034.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, ORACLE CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for ORACLE CORP is currently very high, coming in at 79.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.86% is above that of the industry average.
Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, applications software, and hardware systems. Oracle has a market cap of $155.75 billion and is part of the technology sector and computer software & services industry. The company has a P/E ratio of 16.1, below the S&P 500 P/E ratio of 17.7. Shares are up 26% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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