ORCL  Oracle Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

205.52B

Competitive Advantage over the past 10 years

ORCL likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$25.52 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2008200920102011201220132014201520162017
Net Income 5.52B 5.59B 6.14B 8.55B 9.98B 10.93B 10.96B 9.94B 8.90B 9.34B
divided by
Revenue 22.43B 23.25B 26.82B 35.62B 37.12B 37.18B 38.28B 38.23B 37.05B 37.73B
Net Profit Margin 24.61% 24.05% 22.87% 23.99% 26.89% 29.38% 28.62% 26.00% 24.03% 24.74%

Strong Pricing Power over the past 10 years

ORCL has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$80.22 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2008200920102011201220132014201520162017
Gross Profit 17.45B 18.46B 21.06B 27.22B 32.60B 30.07B 31.04B 30.69B 29.57B 30.26B
divided by
Revenue 22.43B 23.25B 26.82B 35.62B 37.12B 37.18B 38.28B 38.23B 37.05B 37.73B
Gross Margin 77.79% 79.38% 78.51% 76.42% 87.82% 80.87% 81.09% 80.30% 79.81% 80.20%

Low Capital Intensity over the past 10 years

ORCL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ORCL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

8.96% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in May
2008200920102011201220132014201520162017
Capital Expenditure 243.00M 529.00M 230.00M 450.00M 648.00M 650.00M 580.00M 1.39B 1.19B 2.02B
divided by
Net Income 5.52B 5.59B 6.14B 8.55B 9.98B 10.93B 10.96B 9.94B 8.90B 9.34B
Capital Expenditure Ratio 4.40% 9.46% 3.75% 5.27% 6.49% 5.95% 5.29% 14.00% 13.36% 21.65%