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Oracle Corporation Japan (JP:4716)
:4716

Oracle Japan (4716) AI Stock Analysis

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Oracle Japan

(OTC:4716)

Rating:77Outperform
Price Target:
Oracle Japan's strong financial performance, characterized by robust revenue growth and a debt-free balance sheet, is a key strength. The stock's positive technical trend further supports its attractiveness. However, a relatively high P/E ratio suggests potential overvaluation, offset by a strong dividend yield. These factors combined result in a solid but not exceptional overall stock score.

Oracle Japan (4716) vs. iShares MSCI Japan ETF (EWJ)

Oracle Japan Business Overview & Revenue Model

Company DescriptionOracle Japan (4716) is a subsidiary of Oracle Corporation, a global leader in database software and technology, cloud-engineered systems, and enterprise software products. Oracle Japan provides a comprehensive suite of cloud-based and on-premises solutions, including database management systems, enterprise resource planning (ERP) software, customer relationship management (CRM) platforms, and supply chain management applications. The company serves a diverse range of industries, offering technologies that help businesses streamline operations, improve customer experiences, and drive digital transformation.
How the Company Makes MoneyOracle Japan generates revenue primarily through the sale of software licenses, cloud services, and hardware products. The company's revenue streams include subscription fees for its cloud services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Additionally, Oracle Japan earns from the sale of on-premises software licenses and associated support services, which provide ongoing technical support and software updates. Hardware sales, particularly engineered systems and storage products, also contribute to its revenue. Significant partnerships with other technology firms and systems integrators help expand its reach and enhance its service offerings, further contributing to its financial performance.

Oracle Japan Earnings Call Summary

Earnings Call Date:Jun 27, 2025
(Q4-2025)
|
% Change Since: -3.01%|
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance by Oracle Japan, highlighted by significant growth in cloud services and overall financial metrics reaching record highs. There were some concerns regarding conservative guidance and potential cannibalization of on-premise business by cloud services, but the positive highlights significantly outweighed these concerns.
Q4-2025 Updates
Positive Updates
Strong Cloud Services Growth
Cloud services revenue reached JPY 61.962 billion, representing a 28.4% increase and now accounts for 23.5% of total company revenues.
Record High Financial Metrics
Total revenues were JPY 263.510 billion, growing at 7.8% compared to the previous year. Operating income increased by 8.8% to JPY 86.832 billion, and net income rose by 9.2% to JPY 60.725 billion.
Expansion of Customer Base
Oracle Japan expanded its customer base significantly across various industries, including financials, public sector, and telecommunications, with notable clients like MS&AD Group and Sapporo City adopting Oracle Cloud services.
Stable Recurring Revenue
66% of the business is now recurring, driven by robust cloud services and license support.
Negative Updates
Conservative EPS Guidance
The EPS guidance for the upcoming fiscal year appears conservative, potentially due to the impact of exchange rates, which previously turned favorable towards the end of the year.
Potential Cannibalization of On-Premise Business
There is a possibility that Oracle's cloud services may cannibalize its on-premise business, although efforts are being made to migrate on-premise installations to the cloud.
Company Guidance
During Oracle Japan's Fourth Quarter and Fiscal Year 2025 Earnings Call, guidance for fiscal year 2026 was provided, with revenue expected to grow between 6% and 10% and EPS anticipated to range from JPY 490 to JPY 505. The company's Q4 performance was strong, driven by significant growth in cloud services, with cloud services revenue reaching JPY 61.962 billion, up 28.4%, now accounting for 23.5% of total revenues. Total revenues for the fiscal year were JPY 263.510 billion, reflecting a 7.8% increase, while operating income rose by 8.8% to JPY 86.832 billion, and net income increased by 9.2% to JPY 60.725 billion. The guidance reflects the expectation of stable exchange rates and continued strong performance in the cloud sector, with OCI highlighted as a primary growth driver. The company also noted that 66% of its business is now recurring, underscoring the robust momentum in its cloud and infrastructure consumption revenue streams.

Oracle Japan Financial Statement Overview

Summary
Oracle Japan exhibits outstanding financial health across all key metrics. The company shows robust revenue growth, high profitability, and a very strong balance sheet with no debt. Its cash flow generation is efficient, supporting strategic investments and shareholder returns. The overall stability and growth trajectory suggest strong operational capabilities and resilience in the software application industry.
Income Statement
88
Very Positive
Oracle Japan has demonstrated consistent growth in revenue and profitability. The gross profit margin for the latest period is 46.44%, showing strong pricing power and cost management. Net profit margin at 22.73% is robust, highlighting effective control on expenses. Revenue has grown by 7.77% year-over-year, indicating a healthy expansion trajectory. EBIT and EBITDA margins are at 32.64% and 33.18% respectively, reflecting strong operational performance.
Balance Sheet
92
Very Positive
The balance sheet is extremely strong with a solid equity position and no debt, resulting in a debt-to-equity ratio of 0. Return on Equity (ROE) is impressive at 28.98%, reflecting high profitability relative to shareholder equity. The equity ratio stands at 56.38%, indicating strong financial stability and low leverage, which reduces financial risk.
Cash Flow
85
Very Positive
Cash flow performance is strong with free cash flow growing by 19.24% year-over-year. The operating cash flow to net income ratio is 1.44, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also high at 1.44, suggesting effective capital expenditure management and surplus cash generation.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue252.42B244.54B226.91B214.69B208.52B211.35B
Gross Profit117.23B113.55B108.29B105.55B101.76B102.25B
EBITDA84.94B81.13B75.72B74.87B72.95B71.17B
Net Income58.28B55.60B52.01B51.18B49.17B47.69B
Balance Sheet
Total Assets274.13B340.16B281.01B236.87B334.00B294.14B
Cash, Cash Equivalents and Short-Term Investments33.04B91.90B104.53B60.14B53.96B60.09B
Total Debt0.000.000.000.000.000.00
Total Liabilities138.32B148.37B125.16B111.52B114.00B102.78B
Stockholders Equity135.80B191.79B155.85B125.35B220.00B191.36B
Cash Flow
Free Cash Flow0.0079.84B66.97B52.70B65.05B41.60B
Operating Cash Flow0.0080.34B67.73B53.09B65.15B42.31B
Investing Cash Flow0.00-72.39B-743.00M99.83B-50.12B-30.58B
Financing Cash Flow0.00-20.69B-22.67B-146.83B-21.11B-17.10B

Oracle Japan Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price16930.00
Price Trends
50DMA
17003.58
Negative
100DMA
15932.52
Positive
200DMA
15216.03
Positive
Market Momentum
MACD
90.28
Positive
RSI
45.92
Neutral
STOCH
36.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Neutral. The current price of 16930 is below the 20-day moving average (MA) of 17241.00, below the 50-day MA of 17003.58, and above the 200-day MA of 15216.03, indicating a neutral trend. The MACD of 90.28 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4716.

Oracle Japan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥2.17T35.7234.24%1.10%8.31%8.39%
77
Outperform
$5.35T29.948.97%0.71%-1.55%17.21%
76
Outperform
¥545.79B21.87
1.68%9.15%8.68%
74
Outperform
¥782.19B34.4114.25%1.03%6.67%114.29%
74
Outperform
$2.31T20.058.55%1.90%3.91%7.86%
74
Outperform
$6.20T27.8611.70%0.83%-5.48%-10.98%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4716
Oracle Japan
16,930.00
5,390.64
46.72%
JP:8056
BIPROGY Inc.
5,938.00
1,489.80
33.49%
JP:4751
CyberAgent
1,545.00
583.89
60.75%
JP:9735
Secom Co
5,252.00
622.40
13.44%
JP:6701
NEC
3,937.00
1,212.69
44.51%
JP:6702
Fujitsu
3,455.00
851.36
32.70%

Oracle Japan Corporate Events

Oracle Japan Reports Strong Q3 Performance with Increased Sales and Profits
Mar 21, 2025

Oracle Corporation Japan reported a strong performance in the third quarter of the fiscal year ending May 31, 2025, with significant increases in net sales and profits compared to the previous year. The company achieved a 9.1% increase in net sales and an 11.6% rise in profit for the period, reflecting its solid market positioning and effective operational strategies. Despite a decrease in total assets and net assets, Oracle Japan maintained a stable financial position, with a slight decline in the ratio of shareholders’ equity. The company has not revised its dividend outlook or forecast for the fiscal year, indicating confidence in its ongoing financial stability and growth prospects.

Oracle Japan Reports Strong Q3 Financial Performance
Mar 21, 2025

Oracle Corporation Japan reported a strong financial performance for the third quarter of the fiscal year ending May 31, 2025, with significant increases in net sales, operating profit, and ordinary profit compared to the previous year. The company’s robust growth reflects its effective market strategies and solidifies its position in the technology sector, although the forecast for the fiscal year remains cautious with no revisions made this quarter.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 10, 2025