Oracle Japan (4716) AI Stock Analysis

• Market Cap: $1.91T
• Dividend Yield: 1.25%
• Average Volume (3M): 130.99K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.33
• Revenue Growth: 7.76%
• EPS Growth: 9.17%
• Country: JP
• Employees: 2,257
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 123.95
• Shares Outstanding: 128,308,780
• 10 Day Avg. Volume: 143,680
• 30 Day Avg. Volume: 130,986
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 8.05
• Enterprise Value/Gross Profit: 17.41
• Enterprise Value/Ebitda: 23.92
• 1Y Price Target: $15,999.41
• Price Target Upside: 5.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• 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 Corporation Japan engages in the development and sale of software and hardware products and solutions in Japan. The company operates through three segments: Cloud and License, Hardware Systems, and Services. It sells software solutions, such as relational database management software, middleware, and applications; hardware, including servers, storage devices, and network devices for use in building and operating IT environments, such as cloud computing environments; and cloud services through Internet and other networks, as well as provides software license update rights and technical support. The company also offers technical support, maintenance, and repair of hardware products; and consulting, customer support, and education services. In addition, it provides Oracle database, Java, Linux, and MySQL software solutions; and Oracle cloud infrastructure, which include compute, storage, networking, analysis, application development, cloud database, content management, integration, cloud marketplace and management, and governance services, as well as security, identity, and compliance solutions. Further, the company offers cloud applications, such as enterprise resource planning, enterprise performance management, supply chain and manufacturing, human capital management, and advertising and customer experience cloud application solutions, as well as NetSuite and on-premise application products and solutions; and marketing, sales, and services. It serves automotive, communications, construction and engineering, consumer goods, education and research, financial services, food and beverage, healthcare, technology, hospitality, industrial manufacturing, life sciences, media and entertainment, public sector, retail, and utilities sectors. The company was founded in 1985 and is headquartered in Tokyo, Japan. Oracle Corporation Japan is a subsidiary of Oracle Japan Holding Inc.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	260.55B	263.51B	244.54B	226.91B	214.69B	208.52B
Gross Profit	120.40B	121.39B	113.55B	108.29B	105.55B	101.76B
EBITDA	87.67B	88.10B	81.13B	75.72B	74.87B	72.95B
Net Income	60.28B	60.73B	55.60B	52.01B	51.18B	49.17B
Balance Sheet
Total Assets	271.81B	316.40B	340.16B	281.01B	236.87B	334.00B
Cash, Cash Equivalents and Short-Term Investments	26.13B	66.62B	91.90B	104.53B	60.14B	53.96B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	124.05B	152.72B	148.37B	125.16B	111.52B	114.00B
Stockholders Equity	147.77B	163.68B	191.79B	155.85B	125.35B	220.00B
Cash Flow
Free Cash Flow	0.00	64.64B	79.84B	66.97B	52.70B	65.05B
Operating Cash Flow	0.00	66.60B	80.34B	67.73B	53.09B	65.15B
Investing Cash Flow	0.00	-1.96B	-72.39B	-743.00M	99.83B	-50.12B
Financing Cash Flow	0.00	-89.96B	-20.69B	-22.67B	-146.83B	-21.11B

Oracle Japan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15160.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15160 is below the 20-day moving average (MA) of 15663.50, below the 50-day MA of 16241.80, and below the 200-day MA of 15575.83, indicating a bearish trend. The MACD of -348.13 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.30 is Neutral, 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	$1.91T	31.50	34.24%	1.25%	7.76%	9.17%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
OBIIF	―	$17.37B	34.61	16.06%	1.33%	―	―
47D	―	€2.00B	―	-18.26%	―	―	―
9759	73 Outperform	¥234.90B	20.90		2.69%	7.09%	11.95%
4776	72 Outperform	¥163.33B	31.08		0.84%	22.97%	107.52%
6947	66 Neutral	¥112.05B	21.07		1.57%	4.60%	37.53%

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.