ORCLORCL
US • TECHNOLOGY
$114.99
P/E
19.62
PEG
0.90
FCF Yield
2.4%
Rev Growth YoY
+20.6% YoY
Gross Margin
65.8%
Health Score
6/10
D/E Ratio
3.01
Confidence
MEDIUM
Business Snapshot
Oracle is an enterprise technology company generating revenue primarily through cloud services and license support, cloud license and on-premise licenses, hardware, and services. The company competes in the software infrastructure market, holding a dominant position in database software and a growing presence in cloud infrastructure and enterprise applications. With a market cap of $345.77B, Oracle is a large-cap technology stalwart reporting TTM revenue of $67.36B. A defining characteristic is the company's massive recurring revenue base from its database and cloud software, providing significant earnings and cash flow visibility.
Financial Health
Oracle's profitability is strong, with a gross margin of 65.8% and a net margin of 25.4%, reflecting its high-margin software and cloud business model. However, the balance sheet is heavily leveraged, carrying a Debt/Equity ratio of 3.01x, which is high and limits financial flexibility, although the current ratio of 1.11x indicates adequate short-term liquidity...
Risk Assessment
- DEBT — Debt/equity of 3.01x is significantly elevated, making the company highly leveraged and sensitive to interest rate changes.
- TECHNICALS — Price at $114.99 is well below both the 50-day MA of $172.98 and the 200-day MA of $188.28, confirming a strong and established downtrend.
- INSIDER ACTIVITY — A net sell signal with 9 insider sells versus 0 buys over the last 90 days, which can indicate a lack of conviction from executives at current price levels.
- 52-WEEK POSITION — At $114.99, the stock is trading near the very bottom of its 52-week range ($114.75 – $341.82), representing a 66.4% decline from the high....
Oracle's profitability is strong, with a gross margin of 65.8% and a net margin of 25.4%, reflecting its high-margin software and cloud business model. However, the balance sheet is heavily leveraged, carrying a Debt/Equity ratio of 3.01x, which is high and limits financial flexibility, although the current ratio of 1.11x indicates adequate short-term liquidity. The company generated $8.23 billion in positive free cash flow, translating to an FCF yield of 2.4%, confirming its ability to generate cash despite its debt load. Overall, Oracle's financial health is solid on an operational and cash flow basis, but the elevated leverage is a significant offsetting concern for equity holders, potentially limiting dividend growth or aggressive reinvestment.
- DEBT — Debt/equity of 3.01x is significantly elevated, making the company highly leveraged and sensitive to interest rate changes. - TECHNICALS — Price at $114.99 is well below both the 50-day MA of $172.98 and the 200-day MA of $188.28, confirming a strong and established downtrend. - INSIDER ACTIVITY — A net sell signal with 9 insider sells versus 0 buys over the last 90 days, which can indicate a lack of conviction from executives at current price levels. - 52-WEEK POSITION — At $114.99, the stock is trading near the very bottom of its 52-week range ($114.75 – $341.82), representing a 66.4% decline from the high.
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