Oracle (ORCL) Last Update 6/28/21
Related: VMW MSFT ADBE SAP
% of Stock Price
Revenue
Gross Profits
Free Cash Flow
Oracle
STOCK PRICE
DIVISION
% of STOCK PRICE
Hardware
5.8%
$5.46
Services
1.3%
$1.18
Net Debt
13.7% $12.80
TOTAL
100%
$93.69
$80.89
Yours
Trefis Price
N/A
$87.18
Market
 
Top Drivers for Period
Key Drivers
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TREFIS Analysis


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RECENT NEWS AND ANALYSIS

Potential upside & downside to trefis price

Oracle Company

VALUATION HIGHLIGHTS

  1. Cloud services and license support constitutes 78% of the Trefis price estimate for Oracle's stock.
  2. Cloud & On-Premise License constitutes 15% of the Trefis price estimate for Oracle's stock.

WHAT HAS CHANGED?

Latest Earnings

For FY 2021 (ended May 2021), Total Revenues were $40.5 billion, up 4% y-o-y. Cloud Services and License Support revenues were $28.7 billion, up 5% y-o-y. Cloud License and On-Premise License revenues were $5.4 billion, down 5% y-o-y. GAAP Operating Income was $15.2 billion, up 9% y-o-y. GAAP Operating Margin was 38%. GAAP Net Income was $13.7 billion, up 36% y-o-y. GAAP Earnings Per Share was up 48% to $4.55.

Coronavirus and Oil Price war

The World Health Organization (WHO) declared a global health emergency at the end of January in light of the coronavirus spread. Matters were made worse by fears of a price war in the oil industry triggered by an increase in oil production by Saudi Arabia. The companies are affected due to forced lockdown across countries and regions due to the coronavirus. Q1 2021 (ended August 2020) saw a rise in revenue primarily due to the Cloud segments.

BUSINESS SUMMARY

Oracle earns money through the sale of enterprise software and associated hardware. The company had launched its Gen 2 cloud and Autonomous database in order to increase the ‘as a service’ component in its offerings.

Cloud services and license support (2020 revenue of $27.4 billion, c.70.1% of total revenue)

Segment revenues are derived from the sale of subscription for Oracle Cloud Services and product upgrades.

Cloud license and on-premise license (2020 revenue of $5.1 billion, c.13.1% of total revenue)

Segment revenues are derived from the sale of software licenses to be used on-premise or in the cloud.

Hardware (2020 revenue of $3.1 billion, c.8% of total revenue)

Segment revenues are derived from the sale of hardware products and related software.

Services (2019 revenue of $3.4 billion, c.8.8% of total revenue)

Segment revenues are derived from the sale of consulting and technical support services.