Oracle Corp

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ORCL : NYSE : Technology
$41.11 up 0.01 | 0.02%
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 14,096,100
08/25/16 - 3:59 PM ET

Financial Analysis


ORACLE CORP's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ORACLE CORP is extremely liquid. Currently, the Quick Ratio is 3.62 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.82% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)10594.010706.0
EBITDA ($mil)4719.04869.0
EBIT ($mil)4136.04152.0
Net Income ($mil)2814.02757.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)56125.054368.0
Total Assets ($mil)112180.0110903.0
Total Debt ($mil)43855.041958.0
Equity ($mil)47289.048663.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin83.8882.79
EBITDA Margin44.5445.47
Operating Margin39.0438.78
Sales Turnover0.330.34
Return on Assets7.938.96
Return on Equity18.8220.42
Debt Q4 FY15 Q4 FY14
Current Ratio3.744.13
Debt/Capital0.480.46
Interest Expense362.0326.0
Interest Coverage11.4312.74


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)4131.04343.0
Div / share0.150.15
EPS0.660.62
Book value / share11.4511.2
Institutional Own % n/a n/a
Avg Daily Volume1.3972799E71.2655529E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 59.15 for the Software industry and a discount compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 3.59 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 7.44. 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 19.87 Peers 59.15   ORCL 12.53 Peers 22.50

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 13.67 Peers 49.38   ORCL 0.59 Peers 0.82

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 3.59 Peers 7.44   ORCL -6.76 Peers 18.23

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 4.59 Peers 5.86   ORCL -3.09 Peers 5.40

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 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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