Oracle ORCL
Oracle is a technology company that offers database software, cloud solutions, and infrastructure services, with a business model based on subscriptions and cloud service contracts. Oracle is growing strongly (revenue +29.6%, earnings +54.5%) and maintains an exceptional ROE of 41.19%, but its aggressive leverage (ND/EBITDA 3.84) and negative free cash flow conversion (-133.17%) make it vulnerable to rising rates, already reflected in very negative momentum (-46.18%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Oracle is a technology company that offers database software, cloud solutions, and infrastructure services, with a business model based on subscriptions and cloud service contracts. Oracle is growing strongly (revenue +29.6%, earnings +54.5%) and maintains an exceptional ROE of 41.19%, but its aggressive leverage (ND/EBITDA 3.84) and negative free cash flow conversion (-133.17%) make it vulnerable to rising rates, already reflected in very negative momentum (-46.18%).
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 6.0 |
| Valuation | 6.1 |
| Growth | 8.7 |
| Dividend | 5.9 |
| Momentum | 0.3 |
| Risk & Context | 3.5 |
OVERALL SCORE: 5.4/10
Context and risks
Oracle is a hyperscaler financing its AI capex cycle with debt: ND/EBITDA of 3.84 and negative cash conversion. The rise in 10-year Treasury yields (5.17%) makes its refinancing more expensive and reduces the present value of its future cash flows, a material risk to its business model.
News considered in the analysis
- The AI gold rush is fueling a record tech bond boom: Chart of the Day — Refleja el enorme endeudamiento del sector tecnológico para financiar el capex de IA; Oracle, con DN/EBITDA de 3.84, es un participante activo en este mercado de deuda, lo que aumenta su riesgo de refinanciación.
- Nasdaq, S&P 500 Futures Fall As Oil Spikes On Trump’s Snub To Iran: MU, NVDA, SKHY, SPCX, NIO Stocks In Focus — La aversión al riesgo por la escalada geopolítica presiona a las tecnológicas de alta duración como Oracle, cuyo valor depende de flujos futuros lejanos.
- Is Workiva (WK) Quietly Building the AI Tool Every CFO Needs? — Artículo sobre un competidor menor; sin información nueva relevante para Oracle.
- Nvidia, Micron, Alphabet, Oracle and Adobe are part of Zacks Earnings Preview — Listado genérico de empresas que publicarán resultados; sin información específica.
- ‘Big Short’ Fame Michael Burry Says Trump ‘Cannot Afford’ To Let AI Boom Fall — Opinión de un inversor famoso; sin información nueva sobre los fundamentales de Oracle.
Verdict: Hold; business quality is high, but leverage and the rate environment warrant caution until cash generation improves.
Main risk: High leverage (ND/EBITDA 3.84) combined with negative free cash flow conversion (-133.17%) in a rising rate environment, which makes debt refinancing more expensive and pressures long-term valuation.
Other Technology companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →