Oracle Corp (NYSE: ORCL)

Sector: Technology Industry: Software - Infrastructure CIK: 0001341439
Market Cap 561.87 Bn
P/B 18.76
P/E 36.43
P/S 9.21
ROIC (Qtr) 12.59
Div Yield % 0.96
Rev 1y % (Qtr) 14.22
Total Debt (Qtr) 124.39 Bn
Debt/Equity (Qtr) 4.15

About

Oracle Corporation, commonly known as Oracle, is a multinational technology company that specializes in providing a wide range of products and services. Its full name is Oracle Corporation, and its stock symbol is ORCL. The company is a leader in the enterprise software solutions industry, offering a variety of products and services to its customers. Oracle's primary business activities revolve around providing software solutions, hardware products, and services to its clients. The company's software solutions include database management systems,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 19.24B provide 2.38x coverage of short-term debt 8.09B, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 139.02B provide exceptional 13.99x coverage of deferred revenue 9.94B, showing strong service capability backing.
  • Strong operating cash flow of 22.30B provides 2.17x coverage of SG&A expenses 10.28B, showing efficient operational cost management.
  • Tangible assets of 139.02B provide robust 7.11x coverage of other current liabilities 19.56B, indicating strong asset backing.
  • Operating cash flow of 22.30B fully covers other non-current liabilities 10.50B by 2.12x, showing strong long-term stability.

Bear case

  • Operating cash flow of 22.30B barely covers its investment activities of (31.59B), with a coverage ratio of -0.71, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (31.59B) provide weak support for R&D spending of 10.13B, which is -3.12x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 22.30B provides thin coverage of dividend payments of (5.37B) with a -4.15 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 22.30B shows concerning coverage of stock compensation expenses of 4.78B, with a 4.67 ratio indicating potential earnings quality issues.
  • Free cash flow of (13.18B) provides weak coverage of capital expenditures of 35.48B, with a -0.37 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2025)

Cloud and License Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.20 2.69
EV to Cash from Ops. EV/CFO 29.46 28.91
EV to Debt EV to Debt 5.28 19.83
EV to EBIT EV/EBIT 30.95 -9.95
EV to EBITDA EV/EBITDA 25.65 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -49.83 26.09
EV to Market Cap EV to Market Cap 1.17 0.36
EV to Revenue EV/Rev 10.76 -9.34
Price to Book Value [P/B] P/B 18.76 3.88
Price to Earnings [P/E] P/E 36.43 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.87 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 34.90 2.71
Dividend per Basic Share Div per Share (Qtr) 1.90 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -41.29 1.68
Interest Coverage Int. cover (Qtr) 5.51 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -230.17 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 75.86 226.39
Dividend Growth (1y) % Div 1y % (Qtr) 18.75 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 28.43 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.86 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 27.30 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 31.52 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 29.45 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -238.14 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.83 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.01
Cash Ratio Cash Ratio (Qtr) 0.51 1.22
Current Ratio Curr Ratio (Qtr) 0.91 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 4.15 -0.96
Interest Cover Ratio Int Coverage (Qtr) 5.51 -14.20
Times Interest Earned Times Interest Earned (Qtr) 5.51 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 46.50 -548.16
EBIT Margin % EBIT Margin % (Qtr) 34.78 -199.84
EBT Margin % EBT Margin % (Qtr) 28.47 -607.20
Gross Margin % Gross Margin % (Qtr) 68.50 51.88
Net Profit Margin % Net Margin % (Qtr) 25.30 -610.00