Oracle Corp

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ORCL : NYSE : Technology
$39.87 | %
Today's Range: 39.45 - 40.035
Avg. Daily Volume: 1.28501E7
01/20/17 - 4:00 PM ET

Financial Analysis


ORACLE CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ORACLE CORP is extremely liquid. Currently, the Quick Ratio is 3.79 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.52% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)9035.08993.0
EBITDA ($mil)3665.03664.0
EBIT ($mil)3122.03031.0
Net Income ($mil)2032.02198.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)58206.052335.0
Total Assets ($mil)123600.0106483.0
Total Debt ($mil)54327.041940.0
Equity ($mil)48462.045924.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin82.7881.73
EBITDA Margin40.5640.74
Operating Margin34.5533.7
Sales Turnover0.30.35
Return on Assets7.138.63
Return on Equity18.1920.02
Debt Q2 FY16 Q2 FY15
Current Ratio3.964.26
Debt/Capital0.530.48
Interest Expense451.0371.0
Interest Coverage6.928.17


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)4103.04208.0
Div / share0.150.15
EPS0.480.51
Book value / share11.8110.91
Institutional Own % n/a n/a
Avg Daily Volume1.2700344E71.1586717E7

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 50.22 for the Software industry and a discount compared to the S&P 500 average of 25.49. Conducting a second comparison, its price-to-book ratio of 3.32 indicates a premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.84. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ORACLE CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ORCL 18.94 Peers 50.22   ORCL 11.30 Peers 22.87

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ORCL is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ORCL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ORCL 13.75 Peers 50.61   ORCL 0.71 Peers 0.80

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ORCL is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ORCL trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ORCL 3.32 Peers 7.84   ORCL -0.96 Peers 25.26

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ORCL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ORCL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ORCL 4.32 Peers 5.84   ORCL -0.64 Peers 5.17

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ORCL is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ORCL significantly trails its peers on the basis of sales growth

 

 

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