Oracle Japan (4716) AI Stock Analysis

• Market Cap: $2.07T
• Dividend Yield: 1.18%
• Average Volume (3M): 141.25K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.33
• Revenue Growth: 8.31%
• EPS Growth: 8.39%
• Country: JP
• Employees: 2,257
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 123.95
• Shares Outstanding: 128,305,770
• 10 Day Avg. Volume: 123,080
• 30 Day Avg. Volume: 141,250
• PEG Ratio: 10.17
• Price to Book (P/B): 14.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15,945.47
• Price Target Upside: -1.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• 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 Business Overview & Revenue Model

Company Description

Oracle 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 Money

Oracle 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 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

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

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

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.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	244.54B	226.91B	214.69B	208.52B	211.35B
Gross Profit	113.55B	108.29B	105.55B	101.76B	102.25B
EBITDA	81.13B	75.72B	74.87B	72.95B	71.17B
Net Income	55.60B	52.01B	51.18B	49.17B	47.69B
Balance Sheet
Total Assets	340.16B	281.01B	236.87B	334.00B	294.14B
Cash, Cash Equivalents and Short-Term Investments	91.90B	104.53B	60.14B	53.96B	60.09B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	148.37B	125.16B	111.52B	114.00B	102.78B
Stockholders Equity	191.79B	155.85B	125.35B	220.00B	191.36B
Cash Flow
Free Cash Flow	79.84B	66.97B	52.70B	65.05B	41.60B
Operating Cash Flow	80.34B	67.73B	53.09B	65.15B	42.31B
Investing Cash Flow	-72.39B	-743.00M	99.83B	-50.12B	-30.58B
Financing Cash Flow	-20.69B	-22.67B	-146.83B	-21.11B	-17.10B

Oracle Japan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16115.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Negative. The current price of 16115 is below the 20-day moving average (MA) of 16723.50, below the 50-day MA of 16907.51, and above the 200-day MA of 15408.99, indicating a neutral trend. The MACD of -206.62 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4716.

Oracle Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4716	77 Outperform	$2.07T	34.00	34.24%	1.18%	8.31%	8.39%
6701	77 Outperform	$5.66T	31.73	8.97%	0.67%	-1.55%	17.21%
8056	76 Outperform	¥548.72B	21.99		1.67%	9.15%	8.68%
4751	74 Outperform	$796.36B	35.04	14.25%	1.02%	6.67%	114.29%
9735	72 Outperform	$2.41T	20.93	8.55%	1.81%	3.91%	7.86%
Sector *	69 Neutral	¥232.71B	14.90	7.50%	2.59%	9.27%	5.76%
6702	65 Neutral	¥6.05T	27.21	11.70%	0.85%	-5.48%	-10.98%

Oracle Japan Corporate Events

Oracle Japan Reports Strong Q3 Performance with Increased Sales and Profits

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

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.