Oracle Corp.

www.InvestingSidekick.com

ORCL

Value Report

I.S.Q. Score: 7/10

TTM EPS:
Next year EPS estimate:
Net cash* / (debt) p.s:
Net debt EBITDA:
Net debt Equity:

2.48
3.01
2.64
-

Op. profit p.s.

May

Aug

Nov

Feb

TTM

12M ending 2015

12M ending 2014
12M ending 2013
12M ending 2012
12M ending 2011

1.10
1.08
0.94
0.86
0.66

0.67
0.63
0.60
0.53
0.38

0.81
0.76
0.73
0.62
0.55

0.77
0.80
0.71
0.67
0.59

3.35
3.26
2.97
2.68
2.18

Operational Performance (Rolling 12 months)

Gross Margin**

SG&A %

R&D %

Net Debt / EBITDA**

Op Margin
45%

84%

ROE

ROIC
45%

1.2

40%

40%

82%

1.0
35%

35%
80%
30%
78%

30%

0.8

25%

25%
0.6

20%

20%

76%

15%

15%

0.4

74%
10%

10%
0.2

72%

5%

5%
0%

70%

2009

$ millions

2010

2011

0%

2012

2013

2014

TTM

Income Statement
Revenue

CAGR/average
5 year

10 year

23,252
10,245
8,321
5,593
1.12
5,771
0.05

26,820
11,241
9,062
6,135
1.22
6,921
0.20

35,622
14,949
12,033
8,547
1.69
9,159
0.21

37,121
16,532
13,706
9,981
2.03
10,325
0.24

37,180
17,501
14,684
10,925
2.35
10,881
0.30

38,275
17,361
14,759
10,955
2.45
11,155
0.48

38,841
17,448
14,797
10,827
2.48
11,074
0.48

10%
11%
12%
14%
17%
14%
57%

14%
16%
14%
15%
17%
15%
#DIV/0!

2,386
25,090
(1,021)
(0.20)

3,814
30,798
1,052
0.21

12,926
39,776
10,363
2.04

14,202
43,688
10,670
2.18

13,722
44,648
10,665
2.30

14,644
46,878
11,089
2.48

11,520
48,095
6,925
1.59

44%
13%
-261%
-265%

6%
19%
3%
5%

1,976
8,255
(529)
-

2,271
8,681
(230)
-

2,796
11,214
(345)
-

2,916
13,743
(648)
-

2,931
14,224
(650)
-

2,908
14,921
(580)
-

2,868
8%
14,509
13%
(948)
2%
(6,232) #DIV/0!

29%
17%
4%
#DIV/0!

7,673
5,005
70

8,392
5,026
76
16

10,804
5,068
68
13

12,932
4,905
63
7

13,543
4,646
59
12

14,313
4,464
58
10

13,365
4,367
39
15

13%
-2%
65
12

17%
-1%
72
12

Gross Margin

79.4%

78.5%

76.4%

78.8%

80.9%

81.1%

82.2%

79.1%

78.5%

Operating Margin

35.8%

33.8%

33.8%

36.9%

39.5%

38.6%

38.1%

36.5%

35.3%

Adjusted Net Profit Margin

24.8%

25.8%

25.7%

27.8%

29.3%

29.1%

28.5%

27.5%

26.1%

ROIC

25.7%

24.1%

33.1%

34.8%

36.2%

35.0%

30.8%

32.6%

29.5%

2.5

2.0

EBITDA
Operating Profit
Net profit (continuing)
EPS (continuing)
Adjusted net income
Dividend per share

Balance Sheet
Net cash* / (debt)
Shareholders equity
Tangible book value
TBV per share

Cash Flow
Depreciation & amortization
Net cash from operations
Net Cap Ex
Net Disposals (acquisitions)

Other Information
Free cash flow
Shares outstanding (mil)
Accts Receivable days
Inventory days

Ratios

Quick Ratio

1.9
Report updated on:

18-May-15

1.6

2.5

2.4

Share price at report date:

3.0
$43.94

3.1

3.5

Market Cap: $191,889m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments. **Plotted against Left hand axis
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.

Oracle Corp.

www.InvestingSidekick.com

ORCL

Value Report

EV/OP trading range

Conservative model value

Aggressive model value

Current EV/OP (TTM)

Current EV/OP 12.2

(Enterprise Value / Operating Profit)

Return on Invested Capital

21.7

Free Cash ROIC

32.6%
42.0%

(5 year average)

19.7

Free Cash Flow Operating Profit

90%
15 years
92%
10 years
93%
5 years

17.7
15.7

13.7

% spending of FCF on
0%
8%
46%
4%
39%

Net Acquisitions/(divestitures)

11.7

Dividends
Share buybacks / (issues)

9.7

Decrease/(increase) of net debt

7.7

Other spending/(asset sales)

(cumulative last 10 years)

P/B trading range

P/B = 1

Book value p.s. 11.01

Current P/B

10.9

Average annual change in

Book Value p.s.
TBV p.s.
21.8%
40.0%
15 years
15 years
21.6%
52.0%
10 years
10 years
16.2%
5 years
5 years

8.9

6.9
4.9

Compounded annual growth in

Book Value p.s.
TBV p.s.
17.1%
5.7%
15 years
15 years
19.5%
44.6%
10 years
10 years
14.4%
85.6%
5 years
5 years

0.9

Book Value per share

Quick Ratio (Acid test)

Accounts receivable days

16,000

12

14,000

10

12,000

10,000

8,000
4

6,000

4,000

2,000
-

Inventory days

450%

60.0

400%

50.0

350%

Quick Ratio

Free Cash Flow

Tangible Book Value per share

Book Value per share ($)

Operating Income

(2)

300%

40.0

250%

30.0

200%
150%

20.0

100%

10.0

50%
0%

0.0

Inventory/Accounts receivable days

2.9

Operating Profit / FCF ($mil)

1.59
0.23
2.64

Tangible Book (TBV) p.s.

Net Net Curr. Assets p.s.
Net cash* / (debt) p.s.

12.9

(Seasonally adjusted data)

Report updated on: 18-May-15

Share price at report date:

$43.94

Market Cap: $191,889m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments.
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.