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Oracle Corp ORCL

Morningstar Rating
$144.77 +2.01 (1.41%)
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Company Report

Oracle Earnings: IaaS Signings More Than Makes Up for Miss; Raising Fair Value to $98 From $84

Narrow-moat Oracle’s fourth quarter missed consensus expectations on the top and bottom line. Despite the miss, Oracle’s remaining performance obligations increased by 44%, which amounted to $98 billion, largely due to the firm’s growing infrastructure as a service business. We previously expected Oracle’s potential in the hyperscaler sphere to be dramatically capped due to what we saw as more niche attributes stemming from their roots in all things relational. However, we now think the firm’s lower IaaS pricing will bring in additional broader workloads than we had baked in. In turn, this will positively affect margins from such additional scale.

Price vs Fair Value

ORCL is trading within a range we consider fairly valued.
Price
$144.77
Fair Value
$97.00
Uncertainty
Medium
1-Star Price
$851.50
5-Star Price
$14.90
Economic Moat
Sbncvl
Capital Allocation
Kvlll

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

Trading Information

Previous Close Price
$142.76
Day Range
$141.26145.13
52-Week Range
$99.26145.79
Bid/Ask
$145.45 / $145.73
Market Cap
$398.97 Bil
Volume/Avg
5,672 / 8.4 Mil

Key Statistics

Price/Earnings (Normalized)
25.99
Price/Sales
7.72
Dividend Yield (Trailing)
1.11%
Dividend Yield (Forward)
1.11%
Total Yield
1.73%

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
159,000

Competitors

Valuation

Metric
ORCL
CRM
WDAY
Price/Earnings (Normalized)
25.9928.2536.69
Price/Book Value
45.824.137.48
Price/Sales
7.726.998.13
Price/Cash Flow
21.3317.8826.39
Price/Earnings
ORCL
CRM
WDAY

Financial Strength

Metric
ORCL
CRM
WDAY
Quick Ratio
0.590.951.88
Current Ratio
0.721.112.00
Interest Coverage
4.2147.362.23
Quick Ratio
ORCL
CRM
WDAY

Profitability

Metric
ORCL
CRM
WDAY
Return on Assets (Normalized)
11.49%9.32%17.96%
Return on Equity (Normalized)
363.05%15.06%37.52%
Return on Invested Capital (Normalized)
19.73%12.53%23.89%
Return on Assets
ORCL
CRM
WDAY
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