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Oracle Corp.

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ORCL : NYSE : Technology Services
$46.24 -0.58 | -1.2%
Today's Range: 45.98 - 46.62
Avg. Daily Volume: 1.65426E7
04/20/18 - 3:59 PM ET
Rating Summary Rating Detail Financial Analysis Peer Group

Financial Analysis


ORACLE CORP's gross profit margin for the third quarter of its fiscal year 2017 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 4.14 which clearly shows the ability to cover any short-term cash needs. ORCL managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.58% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)9770.09205.0
EBITDA ($mil)4200.03769.0
EBIT ($mil)3501.03113.0
Net Income ($mil)-4024.02239.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)70455.059352.0
Total Assets ($mil)138201.0125382.0
Total Debt ($mil)60715.053967.0
Equity ($mil)47789.050615.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin82.6282.25
EBITDA Margin42.9840.94
Operating Margin35.8333.82
Sales Turnover0.290.3
Return on Assets2.647.11
Return on Equity7.6317.61
Debt Q3 FY17 Q3 FY16
Current Ratio4.334.18
Debt/Capital0.560.52
Interest Expense533.0450.0
Interest Coverage6.576.92


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)4093.04115.0
Div / share0.190.15
EPS-0.980.53
Book value / share11.6812.3
Institutional Own % n/a n/a
Avg Daily Volume1.7023784E71.4981836E7

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 128.53 for the Software industry and a significant premium compared to the S&P 500 average of 24.25. Conducting a second comparison, its price-to-book ratio of 3.93 indicates a premium versus the S&P 500 average of 3.15 and a significant discount versus the industry average of 10.09. 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 55.95 Peers 128.53   ORCL 12.44 Peers 528.82

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 13.73 Peers 51.38   ORCL 1.42 Peers 1.54

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ORCL 3.93 Peers 10.09   ORCL -60.96 Peers -13.10

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 4.76 Peers 7.74   ORCL 5.45 Peers 14.78

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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