Oracle Corp.

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ORCL : NYSE : Technology Services
$49.43 -0.46 | -0.92%
Today's Range: 49.43 - 50.34
Avg. Daily Volume: 1.63312E7
02/21/18 - 4:00 PM ET

Financial Analysis


ORACLE CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ORACLE CORP is extremely liquid. Currently, the Quick Ratio is 4.87 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.28% 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 FY17 Q2 FY16
Net Sales ($mil)9622.09035.0
EBITDA ($mil)4048.03665.0
EBIT ($mil)3360.03122.0
Net Income ($mil)2232.02032.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)71580.058206.0
Total Assets ($mil)138762.0123600.0
Total Debt ($mil)60669.054327.0
Equity ($mil)55868.048462.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin82.5682.78
EBITDA Margin42.0740.56
Operating Margin34.9234.55
Sales Turnover0.280.3
Return on Assets7.147.13
Return on Equity17.7418.19
Debt Q2 FY17 Q2 FY16
Current Ratio5.073.96
Debt/Capital0.520.53
Interest Expense475.0451.0
Interest Coverage7.076.92


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)4143.04103.0
Div / share0.190.15
EPS0.520.48
Book value / share13.4811.81
Institutional Own % n/a n/a
Avg Daily Volume1.6709895E71.4365208E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 636.95 for the Software industry and a discount compared to the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 3.76 indicates a premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 12.45. 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 21.73 Peers 636.95   ORCL 14.44 Peers 23.78

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 15.97 Peers 43.83   ORCL 0.66 Peers 2.78

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ORCL 3.76 Peers 12.45   ORCL 12.56 Peers -8.01

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.

 

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

ORCL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ORCL 5.39 Peers 7.60   ORCL 4.48 Peers 17.12

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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