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Oracle Corp ORCL

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Stock XNYS Rating as of
$119.88 −1.23 (1.02%)
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Company Report

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Oracle Earnings: Cloud Demand Coming Along Nicely As Capacity Expansion Continues

Julie Bhusal Sharma

Narrow-moat Oracle’s third-quarter results fell short of our aggressive estimates on the top and bottom lines, but were more in line with broader investor expectations. Shares are surging after hours, likely based on the strong growth in both cloud revenue and remaining performance obligations, in our view. Despite the recent stock performance, we maintain our fair value estimate of $84 per share and see shares as overvalued. The firm is progressing well on initiatives in both Cerner and Oracle Cloud Infrastructure, or OCI, which is in line with what we anticipated for the quarter, as well as with our longer-term growth and margin cadence.

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Price vs Fair Value

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ORCL is trading at a 43% premium.
Price
$119.88
Fair Value
$99.00
Uncertainty
Medium
1-Star Price
$162.90
5-Star Price
$85.50
Economic Moat
Mslwfp
Capital Allocation
Pykk

Bulls Say, Bears Say

Bulls

Oracle’s relational database should be able to post strong growth as customers continue to depend on its quality features, such as data partitioning which brings incomparable load balancing efficiency.

Bears

Oracle could suffer below average growth as customers are prompted to change databases and software providers in their transition to the cloud.

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News

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Trading Information

Previous Close Price
$121.11
Day Range
$119.44–122.47
52-Week Range
$93.29–132.77
Bid/Ask
$118.29 / $119.84
Market Cap
$329.49 Bil
Volume/Avg
5.1 Mil / 9.0 Mil

Key Statistics

Price/Earnings (Normalized)
21.70
Price/Sales
6.52
Dividend Yield (Trailing)
1.31%
Dividend Yield (Forward)
1.31%
Total Yield
2.01%

Company Profile

Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Large Core
Total Number of Employees
164,000
Website
https://www.oracle.com

Competitors

Valuation

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Metric
ORCL
CRM
WDAY
Price/Earnings (Normalized)
 21.7036.7045.69
Price/Book Value
 59.484.928.71
Price/Sales
 6.528.549.75
Price/Cash Flow
 18.1822.7432.43
Price/Earnings
ORCL
CRM
WDAY

Financial Strength

Metric
ORCL
CRM
WDAY
Quick Ratio
 0.690.961.87
Current Ratio
 0.851.091.97
Interest Coverage
 3.9518.871.48
Quick Ratio
ORCL
CRM
WDAY

Profitability

Metric
ORCL
CRM
WDAY
Return on Assets (Normalized)
 11.69%8.50%10.93%
Return on Equity (Normalized)
 749.60%13.87%23.82%
Return on Invested Capital (Normalized)
 20.33%11.66%14.34%
Return on Assets
ORCL
CRM
WDAY
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