Oracle Corporation (ORCL)

Business overview

Oracle displays robust operational profitability with an operating margin of 30.6% and a Financial Quality pillar score of 53. However, data for gross margin is unavailable in the dataset. Additionally, the company records a negative free cash flow margin of -35.2%, creating uncertainty around its underlying cash generation efficiency.

Financial health

The company's financial health is constrained by a low Balance Sheet pillar score of 18 out of 100. Cash flow metrics are currently stretched, highlighted by an FCF margin of -35.2% and an FCF yield of -6.9%. These negative values introduce uncertainty regarding capital flexibility and financial leverage.

Gross Margin

Data unavailable

Operating Margin

30.6%

Current Ratio

1.1x

Debt / Equity

3.05

Free Cash Flow (TTM)

$-23.7B

Interest Coverage

4x

Valuation

Valuation metrics present a mixed signal, reflected in a Valuation pillar score of 62. The stock trades at a low P/E ratio of 12.88 and a P/S ratio of 3.21, while EV/EBITDA data is unavailable. The low earnings multiple is offset by a negative FCF yield of -6.9%, which indicates potential valuation risk relative to cash earnings.

P/E (TTM)

12.9x

Forward P/E

Data unavailable

Price / Sales

3.2x

EV / EBITDA

Data unavailable

FCF Yield

-6.9%

Key risks

• Negative free cash flow margin of -35.2% and free cash flow yield of -6.9%.
• Low Balance Sheet pillar score of 18 indicating potential liquidity or balance sheet constraints.
• Stock is in a technical Downtrend, trading -15.5% below its 200-day moving average.