Oracle Corp. (ORCL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intuit, Inc.

Adobe, Inc.

ServiceNow, Inc.

Microsoft Corp.

Oracle Corp.

Salesforce, Inc.

Shopify, Inc.

Palo Alto Networks, Inc.

Synopsys, Inc.

Activision Blizzard, Inc.

VMware, Inc.

Why is Oracle Corp. ?

High Management Efficiency with a high ROCE of 24.29%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.12

Poor long term growth as Operating profit has grown by an annual rate 4.91% of over the last 5 years

Positive results in Aug 25

OPERATING CASH FLOW(Y) Highest at USD 21,534 MM
DEBT-EQUITY RATIO (HY) Lowest at 416.56 %
DIVIDEND PER SHARE(HY) Highest at USD 7

With ROCE of 18.64%, it has a attractive valuation with a 5.95 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.35%, its profits have risen by 11.3% ; the PEG ratio of the company is 4.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Oracle Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Oracle Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Oracle Corp.

-12.6%

0.98

60.96%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.05%

EBIT Growth (5y)

5.92%

EBIT to Interest (avg)

5.12

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

4.08

Sales to Capital Employed (avg)

0.51

Tax Ratio

11.96%

Dividend Payout Ratio

39.16%

Pledged Shares

Institutional Holding

45.34%

ROCE (avg)

24.29%

ROE (avg)

330.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.43

EV to EBIT

24.20

EV to EBITDA

17.36

EV to Capital Employed

3.65

EV to Sales

7.81

PEG Ratio

0.71

Dividend Yield

1.40%

ROCE (Latest)

15.06%

ROE (Latest)

45.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 23,514 MM

NET PROFIT(HY)

At USD 10,415.26 MM has Grown at 66.07%

DEBT-EQUITY RATIO (HY)

Lowest at 319.61 %

DIVIDEND PER SHARE(HY)

Highest at USD 6.83

NET SALES(Q)

Highest at USD 17,190 MM

OPERATING PROFIT(Q)

Highest at USD 8,203 MM

OPERATING PROFIT MARGIN(Q)

Highest at 47.72 %

-8What is not working for the Company

ROCE(HY)

Lowest at 58.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.83 times

RAW MATERIAL COST(Y)

Grown by 6.53% (YoY

INTEREST(Q)

Highest at USD 1,180 MM

Here's what is working for Oracle Corp.

Operating Cash Flow

Highest at USD 23,514 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 10,415.26 MM has Grown at 66.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 319.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at USD 17,190 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 8,203 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 47.72 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at USD 6.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 2,566 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Oracle Corp.

Interest

At USD 1,180 MM has Grown at 11.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 6.83 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at USD 1,180 MM

in the last five periods and Increased by 11.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 6.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales