Macroaxis provides advice on Oracle Corp to complement and cross-verify current
analyst consensus on Oracle Corp. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Oracle income statement, its balance sheet, and the statement of cash flows. Potential Oracle investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Oracle investors may use each financial statement separately, they are all related. The changes in Oracle's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Oracle's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Oracle
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Oracle performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Oracle shares is the value that is considered the true value of the share. If
the intrinsic value of Oracle is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Oracle. Please read more on our
fundamental analysis page.
How effective is Oracle in utilizing its assets?
Oracle reports assets on its Balance Sheet. It represents the amount of Oracle resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Oracle aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Systems Software space. To get a better handle on how balance sheet or income statements item affect Oracle volatility, please check the breakdown of all its
fundamentals.
Are Oracle Earnings Expected to grow?
The
future earnings power of Oracle involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Oracle factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Oracle
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Oracle
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Oracle earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Oracle dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Oracle one year expected dividend income is about USD0.99 per share.
The value of
Dividends Paid is estimated to slide to about 2.5
B. The value of
Dividend Yield is estimated to slide to 0.01.
Investing in dividend-paying stocks, such as Oracle is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Oracle must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Oracle. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Oracle Gross Profit
Oracle Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Oracle previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Oracle Gross Profit growth over the last 10 years. Please check Oracle's
gross profit and other
fundamental indicators for more details.
Is Oracle valued adequately by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Oracle is not uncomon. Institutional investor usually refers to an organization that invests money in Oracle on behalf of clients or other money managers. Buying and selling of large positions of Oracle stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Oracle stock. Let's take a look at how the ownership of Oracle is distributed among investors.
Ownership Allocation
Oracle owns a total of two billion seven hundred ninety million
outstanding shares. Oracle has significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Retail Investors10.92% | Insiders41.91% | Institutions47.17% |
| Retail Investors | 10.92 |
| Insiders | 41.91 |
| Institutions | 47.17 |
| 2018 | 2019 | 2020 | 2021 (projected) |
Consolidated Income | 11.08 B | 10.13 B | 11.66 B | 11.38 B | Direct Expenses | 8 B | 7.94 B | 7.86 B | 7.32 B |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Oracle has an asset utilization ratio of 36.41 percent. This denotes that the company is making $0.36 for each dollar of assets. An increasing asset utilization means that Oracle Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets51.3 B | Assets Non Current66.4 B | Goodwill51.9 B | |
| Current Assets | 51.28 Billion | 29.71 |
| Assets Non Current | 66.39 Billion | 38.46 |
| Goodwill | 51.9 Billion | 30.06 |
| Tax Assets | 3.07 Billion | 1.78 |
Will Oracle growth be real after the hike?
New kurtosis is at 30.28. Oracle Corp has relatively low volatility with skewness of 4.48 and kurtosis of 30.28. However, we advise all investors to independently investigate Oracle Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Oracle's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Oracle's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Oracle Implied Volatility
Oracle's implied volatility exposes the market's sentiment of Oracle Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Oracle's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Oracle stock will not fluctuate a lot when Oracle's options are near their expiration.
The Bottom Line
While other entities within the software—infrastructure industry are still a little expensive, even after the recent corrections, Oracle may offer a potential longer-term growth to stakeholders. On the whole, as of the 11th of December 2021, our concluding 90 days 'Buy-Sell' recommendation on the company is
Strong Buy. We believe Oracle is currently
fairly valued with
below average probability of financial unrest for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Oracle. Please refer to our
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