Oracle Corp (ORCL.PD) stock analysis

P/E below its 5-year median

Oracle's P/E of 20.5 is below its own 5-year median of 33.3.

P/E below the industry

Oracle's P/E of 20.5 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 26.0.

EV/EBITDA below its 5-year median

Oracle's EV/EBITDA of 15.5 is below its 5-year median of 23.2.

P/B above the industry

Oracle's price-to-book of 5.92 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.29.

Trading below fair value

The share price of $130.67 is below our fair value estimate of $180.22.

Margin of safety over 20%

The price is 27.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 10.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 23.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 52.1% over the last twelve months, against a 5-year average of 4.4% a year.

Growing faster than the industry

Revenue grew 21.6% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 10.8%.

Guidance raised

Oracle raised its Q2 FY 2027 Total Cloud revenue outlook on Sep 10, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 85.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Oracle's return on equity of 41.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -0.3%.

Earnings grew over 5 years

Net income grew 4.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 26.4% over the last twelve months, against a 5-year average of 19.9%.

Net margin above the industry

Oracle's net margin of 26.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 4.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.17 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Oracle paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Oracle yields 1.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 31.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.