ORCL GoodMoat Verdict
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Oracle Corp
Exchange: NYSESector: TechnologyIndustry: Software - Infrastructure
Oracle's distributed cloud delivers the benefits of cloud with greater control and flexibility. Oracle's distributed cloud lineup includes: Public cloud: Hyperscale public cloud regions serve any size of organization, including those requiring strict EU sovereignty controls. See the full list of regions here. Dedicated cloud: Customers can run all OCI cloud services in their own data centers with OCI Dedicated Region, while partners can resell OCI cloud services and customize the experience using Oracle Alloy. Oracle also operates separate US, UK, and Australian Government Clouds, and Isolated Cloud Regions for national security purposes. Each of these products provides a full cloud and AI stack that customers can deploy as a Sovereign Cloud. Hybrid cloud: OCI delivers key cloud services on-premises via Oracle Exadata Cloud@Customer and is already managing deployments in over 60 countries. Multicloud: OCI is physically deployed within all the cloud providers, including AWS, Google Cloud, and Microsoft Azure, providing low latency, natively integrated Oracle AI Database services, including Oracle AI Database@AWS, Oracle AI Database@Azure, Oracle AI Database@Google Cloud; and Oracle HeatWave on AWS and Microsoft Azure. In addition, Oracle Interconnect for Microsoft Azure, Oracle Interconnect for Google Cloud, and the upcoming connection between OCI and AWS Interconnect–multicloud allow customers to seamlessly combine key capabilities from across clouds. About Oracle Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud.
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Pays a 0.94% dividend yield.
Current Price
$176.28
-5.98%GoodMoat Value
$102.40
41.9% overvaluedProfile
Valuation (TTM)
Market Cap$506.48B
P/E31.29
EV$557.42B
P/B24.77
Shares Out2.87B
P/Sales7.90
Revenue$64.08B
EV/EBITDA20.26
Oracle Corp (ORCL) Quality Analysis
GoodMoat Analysis
Oracle presents a mixed quality profile for a value investor. It demonstrates strong profitability with high operating margins and exceptional returns on equity, but its negative free cash flow yield and high debt load are significant concerns. Its competitive position appears strong, anchored by high switching costs and vertical integration.
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Oracle's profitability metrics are a study in contrasts. The company is highly profitable on an income statement basis, with an operating margin of 30.8% and a robust profit margin of 25.3%. Its return on equity of 79.3% is exceptionally high, far exceeding the framework's 15-20% threshold for a strong ROIC. However, the cash flow picture is unfavourable. The reported free cash flow yield of -0.1% and the high debt-to-equity ratio of 5.09 indicate the business is not currently generating surplus cash for shareholders and is heavily leveraged, failing the balance sheet quality check. Revenue growth of 14.2% YoY is healthy but not in the consistent double-digit range the framework associates with high quality. Applying the Moat Identification lens, Oracle likely scores well on Switching Costs (mission-critical enterprise software), Vertical Integration (with its cloud infrastructure), and possibly Proprietary Data and Niche Dominance in databases. This suggests a durable competitive position that supports its high returns. However, the negative FCF and high debt are critical weaknesses that offset the strong income-based returns, placing the overall quality assessment in a cautious light for a value-focused investor. Analysis based on data as of 2024-07-23.
ORCL Profitability
Profitability trend analysis coming soon
ORCL Growth
Growth trend analysis coming soon
ORCL Financial Health
Financial health indicators coming soon
ORCL Quality & Fundamental Analysis
Oracle Corp (ORCL) is a Technology company in the Software - Infrastructure industry, listed on NYSE. This quality analysis page evaluates Oracle Corp's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
Oracle Corp has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 25.30% and a return on equity (ROE) of 79.26%. Return on assets (ROA) stands at 9.63%.
The debt-to-equity ratio is 5.09, with a current ratio of 0.75. Operating margin is 30.80%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether Oracle Corp is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.