Oracle Corp

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ORCL : NYSE : Technology
$44.79 -0.05 | -0.11%
Today's Range: 44.63 - 45.45
Avg. Daily Volume: 1.29859E7
03/22/17 - 4:01 PM ET

Financial Analysis


ORACLE CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ORACLE CORP is extremely liquid. Currently, the Quick Ratio is 3.99 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 increased by 10.34% 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 FY16 Q3 FY15
Net Sales ($mil)9205.09012.0
EBITDA ($mil)3769.03764.0
EBIT ($mil)3113.03142.0
Net Income ($mil)2239.02142.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)59352.050767.0
Total Assets ($mil)125382.0104894.0
Total Debt ($mil)53967.040106.0
Equity ($mil)50615.045870.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin82.2581.96
EBITDA Margin40.9441.76
Operating Margin33.8234.86
Sales Turnover0.30.35
Return on Assets7.118.43
Return on Equity17.6119.28
Debt Q3 FY16 Q3 FY15
Current Ratio4.184.83
Debt/Capital0.520.47
Interest Expense450.0360.0
Interest Coverage6.928.73


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)4115.04156.0
Div / share0.150.15
EPS0.530.5
Book value / share12.311.04
Institutional Own % n/a n/a
Avg Daily Volume1.278684E71.2680347E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 56.30 for the Software industry and a discount compared to the S&P 500 average of 26.64. Conducting a second comparison, its price-to-book ratio of 3.68 indicates a premium versus the S&P 500 average of 2.97 and a significant discount versus the industry average of 8.57. 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 21.54 Peers 56.30   ORCL 13.85 Peers 22.30

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 15.98 Peers 34.07   ORCL 0.79 Peers 0.83

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 3.68 Peers 8.57   ORCL 3.44 Peers 43.17

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 4.97 Peers 6.36   ORCL 0.72 Peers 7.64

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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