Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Oracle Corp., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Net income 12,443 10,467 8,503 6,717 13,746 10,135
Noncontrolling interests in income 184 186 165 184 180 164
Net noncash charges 9,694 8,508 7,984 4,625 2,109 3,782
Changes in operating assets and liabilities, net of effects from acquisitions (1,500) (488) 513 (1,987) (148) (942)
Net cash provided by operating activities 20,821 18,673 17,165 9,539 15,887 13,139
Capital expenditures (21,215) (6,866) (8,695) (4,511) (2,135) (1,564)
Proceeds from issuances (repayments) of commercial paper, net 1,889 (167) 500 — — —
Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs 19,548 — 33,494 — 14,934 19,888
Repayments of senior notes and term loan credit agreements (15,841) (3,500) (21,050) (8,250) (2,631) (4,500)
Free cash flow to equity (FCFE) 5,202 8,140 21,414 (3,222) 26,055 26,963

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

The analysis of the financial data reflects dynamic changes over the six-year period ending May 31, 2025.

Net cash provided by operating activities
This metric shows a generally increasing trend with some fluctuations. It started at $13,139 million in 2020, rose to $15,887 million in 2021, then declined significantly to $9,539 million in 2022. However, it rebounded strongly in subsequent years, reaching $17,165 million in 2023, $18,673 million in 2024, and $20,821 million in 2025. The overall pattern suggests resilience and recovery after a trough in 2022, indicating effective operational cash generation capacity which improved markedly in the latter years.
Free cash flow to equity (FCFE)
FCFE exhibited greater volatility compared to operating cash flow. Starting at $26,963 million in 2020, it slightly declined to $26,055 million in 2021 before plunging into negative territory at -$3,222 million in 2022, signaling potential challenges in free cash available to shareholders that year. The following years depict recovery, with FCFE rising to $21,414 million in 2023, but then decreasing to $8,140 million in 2024 and further to $5,202 million in 2025. This declining trend post-2023 indicates reduced free cash flow availability for equity holders, which may merit further scrutiny regarding capital expenditures, debt servicing, or other cash outflows during this period.

In summary, while operational cash flow displays an overall upward trajectory and recouped losses after 2022, FCFE shows more marked volatility with a notable dip in 2022 and a downward trend after 2023. This divergence suggests that despite strong operational cash generation, factors affecting free cash flow to equity, such as investments, financing activities, or other uses of cash, have increasingly constrained the free cash available to shareholders in the most recent years.

Price to FCFE Ratio, Current

Oracle Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 2,808,833,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 5,202
FCFE per share 1.85
Current share price (P) 218.63
Valuation Ratio
P/FCFE 118.05
Benchmarks
P/FCFE, Competitors1
Accenture PLC 19.73
Adobe Inc. 16.63
Cadence Design Systems Inc. 28.61
CrowdStrike Holdings Inc. 118.87
Fair Isaac Corp. 46.82
International Business Machines Corp. 23.95
Intuit Inc. 48.34
Microsoft Corp. 49.53
Palantir Technologies Inc. 281.89
Palo Alto Networks Inc. 66.01
Salesforce Inc. 24.07
ServiceNow Inc. 63.06
Synopsys Inc. 65.80
Workday Inc. 29.27
P/FCFE, Sector
Software & Services 46.23
P/FCFE, Industry
Information Technology 45.57

Based on: 10-K (reporting date: 2025-05-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Oracle Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
No. shares of common stock outstanding1 2,808,833,000 2,755,860,000 2,714,259,000 2,664,926,000 2,792,000,000 3,068,682,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 5,202 8,140 21,414 (3,222) 26,055 26,963
FCFE per share3 1.85 2.95 7.89 -1.21 9.33 8.79
Share price1, 4 210.87 142.91 122.04 67.68 77.99 55.12
Valuation Ratio
P/FCFE5 113.86 48.38 15.47 — 8.36 6.27
Benchmarks
P/FCFE, Competitors6
Accenture PLC — 23.91 21.01 17.87 25.76 19.01
Adobe Inc. — 18.02 41.83 21.32 34.26 41.36
Cadence Design Systems Inc. — 24.08 71.40 33.41 36.31 45.86
CrowdStrike Holdings Inc. 71.69 85.82 42.65 99.63 41.38 880.68
Fair Isaac Corp. — 53.56 49.48 10.12 12.69 38.46
International Business Machines Corp. — 20.90 9.97 11.97 48.45 9.43
Intuit Inc. — 38.43 38.74 13.86 86.74 17.36
Microsoft Corp. — 42.11 43.32 36.73 42.54 42.74
Palantir Technologies Inc. — 256.11 74.28 96.89 198.12 —
Palo Alto Networks Inc. — 52.90 79.75 29.54 32.91 8.11
Salesforce Inc. 25.91 38.33 31.06 16.56 49.52 50.40
ServiceNow Inc. — 61.82 58.19 44.44 64.54 49.83
Synopsys Inc. — 63.08 57.04 33.41 40.55 45.07
Workday Inc. 29.52 36.59 19.79 49.17 40.57 74.21
P/FCFE, Sector
Software & Services — 39.97 32.86 30.85 33.71 26.75
P/FCFE, Industry
Information Technology — 36.66 33.16 26.84 27.24 23.37

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,202,000,000 ÷ 2,808,833,000 = 1.85

4 Closing price as at the filing date of Oracle Corp. Annual Report.

5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 210.87 ÷ 1.85 = 113.86

6 Click competitor name to see calculations.

Share Price
The share price demonstrates an overall upward trajectory across the observed periods. It increased from $55.12 in May 2020 to $210.87 in May 2025, with a notable peak in May 2023 at $122.04 followed by sustained growth through to the final period. This indicates strong market valuation gains over the timeframe.
Free Cash Flow to Equity (FCFE) per Share
The FCFE per share shows volatility with both positive and negative values over the years. It increased slightly from $8.79 in 2020 to $9.33 in 2021 before dropping sharply to a negative $-1.21 in 2022. The metric recovered to $7.89 in 2023 but then declined again, reaching $1.85 by 2025. This pattern suggests fluctuations in cash flow available to equity shareholders, reflecting potential operational or investment shifts within the company.
Price to FCFE (P/FCFE) Ratio
The P/FCFE ratio exhibits irregular movements, with missing data for 2022 presumably due to negative FCFE making the ratio non-computable. It started at a relatively low level of 6.27 in 2020, increased to 8.36 in 2021, then jumped significantly to 15.47 in 2023. The ratio escalated sharply in subsequent years, reaching 48.38 in 2024 and peaking at 113.86 in 2025. This trend indicates that the share price growth outpaced FCFE per share, thus resulting in a substantially higher valuation multiple over time, which could imply heightened market expectations or decreased cash flow performance.