Sample of an ORACLE stock that provides information on the company performance to aid decision making

1. ORACLE NDQ-ORCL RECENT
PRICE 24.19 P/E 14.3(Trailing: 15.8) RELATIVE .82 DIV’D 0.8%
RATIO Median: 21.0 P/E RATIO YLD
VALUE
LINE
TIMELINESS 2 Raised 12/25/09 High:
Low:
28.3
5.3
46.5
21.5
35.0
10.2
17.5
7.3
14.0
10.6
15.5
9.8
14.5
11.3
19.8
12.1
23.3
16.0
23.6
15.0
25.1
13.8
26.6
22.2
Target Price Range
2013 2014 2015
SAFETY 1 Raised 5/22/09LEGENDS
15.0 x ″Cash Flow″ p sh
TECHNICAL 3
Raised 11/13/09 . . . . Relative Price Strength
3-for-2 split 8/97
80
BETA .90 (1.00 = Market) 3-for-2 split 3/99 60
2-for-1 split 1/00 50
2013-15 PROJECTIONS 2-for-1 split 10/00 40
Ann’l Total Options: Yes
Price Gain Return Shaded area: prior recession 30
High 45 (+85%) 18% Latest recession began 12/07 25
Low 35 (+45%) 11% 20
Insider Decisions 15
J J A S O N D J F
to Buy 0 2 0 0 0 0 1 0 0 10
Options 1 8 0 2 3 1 9 5 1
to Sell 1 8 0 3 4 1 9 5 1 7.5
% TOT. RETURN 4/10
Institutional Decisions THIS VL ARITH.
2Q2009 3Q2009 4Q2009 STOCK INDEX
Percent 30 1 yr. 34.9 63.0
to Buy 547 563 526 shares 20
to Sell 549 544 605 3 yr. 39.2 9.5
traded 10
Hld’s(000)299979529989173029233 5 yr. 126.3 57.4
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 © VALUE LINE PUB., INC. 13-15
.35 .51 .72 .97 1.22 1.54 1.80 1.94 1.78 1.81 1.96 2.36 2.82 3.57 4.39 4.69 5.35 7.15 Sales per sh A 9.20
.07 .10 .15 .19 .22 .29 .44 .52 .48 .50 .56 .73 .85 1.09 1.37 1.53 1.70 2.00 ‘‘Cash Flow’’ per sh 2.60
.05 .07 .11 .14 .16 .22 .35 .46 .39 .43 .50 .68 .80 1.01 1.30 1.44 1.62 1.90 Earnings per sh B 2.50
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- .05 .20 .20 Div’ds Decl’d per sh E .30
.04 .04 .05 .07 .06 .06 .05 .06 .05 .06 .04 .04 .05 .06 .05 .11 .05 .05 Cap’l Spending per sh .05
.13 .21 .32 .40 .51 .65 1.15 1.12 1.13 1.21 1.55 2.11 2.87 3.31 4.47 5.01 6.10 7.90 Book Value per sh D 12.70
5798.8 5850.3 5902.4 5867.8 5840.0 5724.5 5615.1 5592.4 5431.0 5233.0 5171.0 5145.0 5232.0 5107.0 5150.0 5005.0 5025.0 4925.0 Common Shs Outst’g C 4725.0
31.1 28.9 31.3 32.4 31.9 26.9 NMF NMF 36.8 24.6 25.1 17.9 16.3 17.0 15.8 13.1 Bold figures are Avg Ann’l P/E Ratio 16.0
2.04 1.93 1.96 1.87 1.66 1.53 NMF NMF 2.01 1.40 1.33 .95 .88 .90 .95 .86 Value Line Relative P/E Ratio 1.05
estimates
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- .3% Avg Ann’l Div’d Yield .8%
CAPITAL STRUCTURE as of 2/28/10 10130 10860 9673.0 9475.0 10156 12119 14771 18208 22609 23495 26975 35125 Sales ($mill) A 43500
Total Debt $15718 mill. Due in 5 Yrs $5500 mill. 34.3% 38.0% 40.7% 39.8% 40.4% 42.5% 41.9% 42.1% 43.9% 47.3% 46.0% 40.5% Operating Margin 41.0%
LT Debt $11498 mill. LT Interest $585.0 mill. 390.9 346.9 363.0 327.0 234.0 206.0 223.0 249.0 268.0 263.0 300 350 Depreciation ($mill) 400
(29% of Cap’l)
2055.3 2561.1 2224.0 2307.0 2681.0 3541.0 4246.0 5295.0 6799.0 7393.0 8220 9450 Net Profit ($mill) 12000
Leases, Uncapitalized Annual rentals $388.0 mill. 35.5% 35.5% 34.7% 32.6% 32.0% 28.8% 29.7% 28.6% 29.5% 28.7% 28.0% 29.0% Income Tax Rate 29.0%
20.3% 23.6% 23.0% 24.3% 26.4% 29.2% 28.7% 29.1% 30.1% 31.5% 30.5% 26.9% Net Profit Margin 27.6%
No defined benefit pension plan 5021.1 5046.6 4768.0 5069.0 7064.0 416.0 5044.0 3496.0 8074.0 9432.0 7500 10000 Working Cap’l ($mill) 12500
Pfd Stock None 300.8 300.8 298.0 175.0 163.0 159.0 5735.0 6235.0 10235 9237.0 11500 11500 Long-Term Debt ($mill) 9325
Common Stock 5,019,091,000 shs. 6461.5 6277.8 6117.0 6320.0 7995.0 10837 15012 16919 23025 25090 30575 39000 Shr. Equity ($mill) 60000
as of 3/23/10 30.5% 39.1% 34.8% 35.6% 33.0% 32.3% 20.9% 23.6% 21.0% 22.3% 20.5% 19.5% Return on Total Cap’l 17.5%
31.8% 40.8% 36.4% 36.5% 33.5% 32.7% 28.3% 31.3% 29.5% 29.5% 27.0% 24.0% Return on Shr. Equity 20.0%
MARKET CAP: $121 billion (Large Cap) 31.8% 40.8% 36.4% 36.5% 33.5% 32.7% 28.3% 31.3% 29.5% 28.5% 23.5% 21.5% Retained to Com Eq 17.5%
CURRENT POSITION 2008 2009 2/28/10 -- -- -- -- -- -- -- -- -- 3% 12% 11% All Div’ds to Net Prof 12%
($MILL.)
Cash Assets 11043 12624 17489 BUSINESS: Oracle Corporation develops, manufactures, markets, profits 52% of total in 2009. Research & Development: 11% of ’09
Receivables 5799 4430 3898 distributes, and services database and middleware software, and sales. Employed 86,000 at 5/31/09. Lawrence J. Ellison owns
Other 1261 1527 2592 applications software that helps customers manage their 23.4% of stock, other Officers & Directors 0.6% (8/09 proxy). Chair-
Current Assets 18103 18581 23979 businesses. 2009 revenues as a percent of the total: New software man: Jeffrey O. Henley. CEO: Lawrence J. Ellison. Inc.: DE. Add.:
Accts Payable 383 271 616 licenses, 30%; software license updates and product support, 51%; 500 Oracle Parkway, Redwood City, CA 94065. Tele.: 650-506-
Debt Due 1001 1001 4220
Deferred Revenue 4492 4592 5389 services, 19%. ’09 dep. rate, 6.9%. Foreign sales were 56%, pretax 7000. Internet: www.oracle.com.
Other 4153 3285 4026
Current Liab. 10029 9149 14251 The integration of Sun Microsystems Revenue and earnings should ad-
into Oracle’s operating structure ap- vance at a good pace in 2011. True, the
ANNUAL RATES Past Past Est’d ’07-’09 pears to be progressing nicely. In addition of Sun is an important factor.
of change (per sh) 10 Yrs. 5 Yrs. to ’13-’15
Sales 13.0% 18.0% 14.0% terms of the field organization, incentives Nonetheless, software sales should contin-
‘‘Cash Flow’’ 19.0% 21.0% 12.0% have been realigned and territories ad- ue expanding nicely, now that economic
Earnings 22.0% 23.0% 12.0% justed (as necessary), bringing the Sun prospects are improving and constraints
Dividends -- -- NMF
Book Value 23.5% 27.0% 20.0% sales reps into the fold. We note that on IT spending may loosen. Moreover, the
demand for Sun’s systems seems to be Fusion Applications should come to mar-
Fiscal QUARTERLY SALES ($ mill.)A Full
Year Fiscal rebounding, after waning due to the un- ket this calendar year, likely strengthen-
Ends Aug.31 Nov.30 Feb.28 May 31 Year certainties arising in the hiatus between ing the company’s position against compe-
2007 3661 4216 4449 5882 18208 the announcement and the closing of the titors like SAP. Oracle also believes that it
2008 4593 5364 5371 7281 22609 Oracle/Sun deal. In addition to the better can be effective selling into vertical mar-
2009 5422 5687 5504 6882 23495 pipeline, corporate IT managers have kets, and has recently upped its ante in
2010 5063 5872 6469 9571 26975
2011 7650 8550 8575 10350 35125 shown interest in Oracle’s product stra- the healthcare arena with the acquisition
Fiscal Full
tegy of tightly binding Sun’s hardware and of Phase Forward. Finally, expense man-
EARNINGS PER SHARE AB operating systems with its database sys- agement will likely remain at the fore-
Year Fiscal
Ends Aug.31 Nov.30 Feb.28 May 31 Year tems, middleware, and business applica- front, helping to support the earnings
2007 .18 .22 .25 .37 1.01 tions. Although these are early days in growth we currently envision.
2008 .22 .31 .30 .47 1.30 this regard, sales of Exadata systems are Oracle stock is favorably ranked for
2009 .29 .34 .35 .46 1.44
2010 .30 .39 .38 .55 1.62 quite brisk, indicating the strategy’s Timeliness. The shares have taken a step
2011 .37 .45 .46 .62 1.90 potential as it evolves and products are up since our February review, having
targeted at a broader spectrum of applica- generally received good market support in
Cal- QUARTERLY DIVIDENDS PAID E Full tions. Oracle’s bottom line should benefit the wake of the completion of the Sun ac-
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
from Sun in the May quarter, with pros- quisition. Investors with an intermediate
2006 -- -- -- -- -- pects that the computer maker may con- horizon may find interest here, as Oracle
2007 -- -- -- -- -- tribute $1.5 billion and $2.0 billion to oper- moves forward with service-oriented sys-
2008 -- -- -- -- --
2009 -- .05 .05 .05 .15 ating income (non-GAAP) in fiscal 2011 tems and benefits from Sun materialize.
2010 .05 .05 and 2012 (years end May 31st). Charles Clark May 21, 2010
(A) Fiscal year ends May 31st. 12¢; ’07, 20¢; ’08, 24¢; ’09, 35¢; gain: ’00, 70¢. $5.22 a share. Company’s Financial Strength A++
(B) Primary earnings through ’97, then diluted. Next earnings report due late June. (E) Initial dividend paid May 8, 2009. Dividends Stock’s Price Stability 85
Quarters may not add to total. Excludes non- (C) In millions, adjusted for splits. paid mid-January, April, July, and October. Price Growth Persistence 35
recurring losses: ’93, 1¢; ’98, 2¢; ’05, 13¢; ’06, (D) Includes intangibles. In 2009, $26.1 billion, Earnings Predictability 100
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