Oracle Corp.
Find Ratings Reports
-0.58 |
-1.2%
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 ($mil) | 9770.0 | 9205.0 |
| EBITDA ($mil) | 4200.0 | 3769.0 |
| EBIT ($mil) | 3501.0 | 3113.0 |
| Net Income ($mil) | -4024.0 | 2239.0 |
| Balance Sheet | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 70455.0 | 59352.0 |
| Total Assets ($mil) | 138201.0 | 125382.0 |
| Total Debt ($mil) | 60715.0 | 53967.0 |
| Equity ($mil) | 47789.0 | 50615.0 |
| Profitability | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Gross Profit Margin | 82.62 | 82.25 |
| EBITDA Margin | 42.98 | 40.94 |
| Operating Margin | 35.83 | 33.82 |
| Sales Turnover | 0.29 | 0.3 |
| Return on Assets | 2.64 | 7.11 |
| Return on Equity | 7.63 | 17.61 |
| Debt | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Current Ratio | 4.33 | 4.18 |
| Debt/Capital | 0.56 | 0.52 |
| Interest Expense | 533.0 | 450.0 |
| Interest Coverage | 6.57 | 6.92 |
| Share Data | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Shares outstanding (mil) | 4093.0 | 4115.0 |
| Div / share | 0.19 | 0.15 |
| EPS | -0.98 | 0.53 |
| Book value / share | 11.68 | 12.3 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.7023784E7 | 1.4981836E7 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| 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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