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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Microsoft Corp.

Intuit, Inc.

ServiceNow, Inc.

Adobe, Inc.

Salesforce, Inc.

Oracle Corp.

Palo Alto Networks, Inc.

Shopify, 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

Flat results in Aug 25

DEBTORS TURNOVER RATIO(HY) Lowest at 7 times
EPS(Q) Lowest at USD 1.01

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 13.58%, its profits have risen by 11.3% ; the PEG ratio of the company is 4.1

Consistent Returns over the last 3 years

Along with generating 13.58% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

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.

13.89%

1.11

60.34%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.00%

EBIT Growth (5y)

4.91%

EBIT to Interest (avg)

5.12

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

4.08

Sales to Capital Employed (avg)

0.54

Tax Ratio

11.96%

Dividend Payout Ratio

39.16%

Pledged Shares

Institutional Holding

45.30%

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

29.17

EV to EBIT

31.93

EV to EBITDA

23.83

EV to Capital Employed

5.95

EV to Sales

10.15

PEG Ratio

4.05

Dividend Yield

67.03%

ROCE (Latest)

18.64%

ROE (Latest)

76.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

6What is working for the Company

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

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7 times

EPS(Q)

Lowest at USD 1.01

Here's what is working for Oracle Corp.

Operating Cash Flow

Highest at USD 21,534 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)

Debt-Equity Ratio

Lowest at 416.56 % 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

Dividend per share

Highest at USD 7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 1,771 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.

Debtors Turnover Ratio

Lowest at 7 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

EPS

Lowest at USD 1.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income