Tag Archives: orcl
Free cash flow is important for the company to pursue opportunities to enhance shareholder value, but it does not have to be expensive. In this article, four technology stocks with cheap free cash flow, which are also on the long-term uptrend, will be presented. They are Oracle Corporation (ORCL), Broadcom Corporation (BRCM), BMC Software, Inc. (BMC), and Cadence Design Systems Inc. (CDNS).
Oracle, with a market cap of $158.41B, is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications.
On March 25, 2013, Macquarie reiterated a neutral rating for ORCL with a price target of $36.00. Analysts currently have a mean target price of $37.72 for ORCL, suggesting 12.73% upside potential based on the closing price of $33.46 on April 12, 2013. Analysts, on average, are projecting an EPS of $0.88 with revenue of $11.14B for the current quarter ending in March, 2013.
Fundamentally, ORL has a high operating margin of 38.44% and the long-term EPS growth is expected to be 10.66% for the next five years. ORCL has a solid balance sheet with a total cash of $33.41B and a total debt of $19.75B. From the valuation perspective, ORCL offers a cheap free cash flow (P/FCF of 13.94) with a low Forward P/E of 11.42.
Technically, ORCL continues to be on the long-term uptrend since mid-November, 2012. ORCL had bounced back from its long-term support after it missed its earnings in the last quarter.
Share repurchase reduces the number of shares outstanding for the corporation. In this article, three large-cap stocks, which were in the list of top 10 companies with the largest dollar-value share repurchases in the most recent quarter as of December, 2012, will be presented.
|Name (Ticker)||Sector||Quarter‘s Buybacks ($M)||% Change in Shares (Qtr)||Market Cap||Beta||Dividend Yield|
|Oracle Corp. (ORCL)||IT||$3,074||-1.5%||164.80B||1.10||0.69%|
|Procter & Gamble Co. (PG)||Consumer Staples||$2,891||-0.5%||209.08B||0.46||2.94%|
|Philip Morris International (PM)||Consumer Staples||$1,505||-1.0%||150.33B||0.86||3.78%|
Source: FactSet Research Systems and Google Finance
Date: December 20, 2012
Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. ORCL closed at $34.81 and was down 0.26% on February 15, 2013. ORCL had been trading in the range of $25.33-$36.31 in the past 52 weeks.
Investors who are looking for technology stocks that offer strong cash flow, healthy balance sheet, and profitable margins with solid competitive edges can consider the following three companies: Oracle Corporation (ORCL), Cisco Systems, Inc. (CSCO) and Cognizant Technology Solutions Corp (CTSH).
Oracle Corporation is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. Software license and product support is the most profitable segment of ORCL’s operation. ORCL closed at $34.56 with 1.54% loss on February 7, 2013. ORCL had been trading in the range of $25.3-$36.31 in the past 52 weeks. ORCL has a beta of 1.10.
In early February, ORCL announced the acquisition of Acme Packet Inc. (APKT) for $1.7B net of cash while the company is expanding into the networking equipment market long dominated by Cisco Systems Inc. Analysts believe Acme Packet is a good for ORCL because it expands existing ties with telecommunications providers, many of whom are already heavily dependent on Oracle’s business management software and database for running their internal operations, as reported by Reuters.