As the Technology Industry Grows, Oracle Is Primed to Help Cloud Services for Many

Oracle is a company that touches many different areas of the technology industry, but one area most can relate to is cloud services. This is where people can store their information on a server and access it from anywhere in the world. As the tech industry continues to grow, Oracle can provide services to commercial and retail clients as well as products that will better serve their needs. Be sure to compare Oracle with other companies as the tech space offers many different ways to invest and each bring their own unique value.

Published over a year ago
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Reviewed by Ellen Johnson

Taking a look at a recent 8-K filing, we can get a glance at how company has been doing recently. According to the report, total revenues were $9.0 billion for the second quarter of 2016, flat in U.S dollars and up 1% in constant currency. SAAS and PAAS cloud revenues were up 81% and up 89% in non-GAAP constant currency. Operating income was $3.0 billion and operating margin was at 34%. Overall, the numbers appear to be solid and stable, which as a potential investor, is what you want to see.

Taking a look at the chart, we can see that price has been steadily increasing. However, if you glance at the monthly chart, you can see that a lower high was made, along with a lower low. This could indicate that the trend is changing and it might be a time to ride the short side if you have that ability. If you really want to wait for confirmation, wait for the $35 area of support to break, which then will really confirm a down trend has been established.

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 USD0.96 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.
Last ReportedProjected for 2024
Dividends Paid4.2 B2.5 B
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.39  0.22 
Dividend Paid And Capex Coverage Ratio(3.07)(2.92)
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?

Risks

Being in the tech space, risk is always around due to the quick evolution of products as well as competition. Taking a look at the most recent 10-K filing, we can see a few that you should be aware of before investing. One risk is that the company’s success depends on their ability to continue making solid products and keeping up with the demands of the market. If these are not met, they will surely become a struggling company as the tech market waits for no one. Also, being in the tech space, security is of most concern, and if that brand image is tainted with inadequate security, they will certainly lose customers.

Conclusion

The tech space is full of opportunities and Oracle may be the right fit, or it may not. There are many different options out there and it is important to do the research to discover which is the right one for you. If you don’t have the time, be sure to contact an investing professional as they can direct you in the right direction. Building the right portfolio is crucial for a solid retirement nest egg.

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Editorial Staff

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 Nathan Young do not own shares of Oracle. Please refer to our Terms of Use for any information regarding our disclosure principles.

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