Oracle Japan (4716) AI Stock Analysis

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Oracle Japan

(OTC:4716)

77Outperform

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. S&P 500 (SPY)

Market Cap

¥2.21T

Dividend Yield3.72%

Average Volume (3M)130.67K

Price to Earnings (P/E)36.6

Beta (1Y)0.37

Revenue Growth8.31%

EPS Growth8.39%

CountryJP

Employees2,257

SectorTechnology

Sector Strength77

IndustrySoftware - Application

Share Statistics

EPS (TTM)121.08

Shares Outstanding128,302,080

10 Day Avg. Volume112,860

30 Day Avg. Volume130,670

Financial Highlights & Ratios

PEG Ratio108.53

Price to Book (P/B)13.04

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥15,000.74

Price Target Upside-12.94% Downside

Rating ConsensusHold

Number of Analyst Covering0

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 Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
252.42B	244.54B	226.91B	214.69B	208.52B	211.35B
	Gross Profit
117.23B	113.55B	108.29B	105.55B	101.76B	102.25B
	EBIT
83.41B	79.82B	74.40B	73.21B	70.90B	68.86B
	EBITDA
84.94B	81.13B	75.72B	74.87B	72.95B	71.17B
	Net Income Common Stockholders
58.28B	55.60B	52.01B	51.18B	49.17B	47.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.04B	91.90B	104.53B	60.14B	53.96B	60.09B
	Total Assets
274.13B	340.16B	281.01B	236.87B	334.00B	294.14B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-33.04B	-91.90B	-104.53B	-60.14B	-53.96B	-60.09B
	Total Liabilities
138.32B	148.37B	125.16B	111.52B	114.00B	102.78B
	Stockholders Equity
135.80B	191.79B	155.85B	125.35B	220.00B	191.36B
Cash Flow		Free Cash Flow
0.00	79.84B	66.97B	52.70B	65.05B	41.60B
	Operating Cash Flow
0.00	80.34B	67.73B	53.09B	65.15B	42.31B
	Investing Cash Flow
0.00	-72.39B	-743.00M	99.83B	-50.12B	-30.58B
	Financing Cash Flow
0.00	-20.69B	-22.67B	-146.83B	-21.11B	-17.10B

Oracle Japan Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17230.00

Price Trends

50DMA

15800.70

Positive

100DMA

15146.95

Positive

200DMA

14555.10

Positive

Market Momentum

MACD

392.63

Positive

RSI

61.31

Neutral

STOCH

32.41

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Positive. The current price of 17230 is above the 20-day moving average (MA) of 16904.50, above the 50-day MA of 15800.70, and above the 200-day MA of 14555.10, indicating a bullish trend. The MACD of 392.63 indicates Positive momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4716.

Oracle Japan Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6701	78 Outperform	$4.99T	27.96	8.97%	0.72%	-1.55%	17.24%
4716	77 Outperform	¥2.21T	36.63	36.60%	3.72%	8.31%	8.39%
4751	76 Outperform	¥713.78B	31.44	14.25%	1.22%	6.67%	114.29%
9735	75 Outperform	¥2.38T	20.60	8.55%	1.76%	3.60%	6.61%
8056	74 Outperform	¥499.39B	20.01		2.02%	9.15%	8.60%
6702	73 Outperform	$6.12T	27.41	11.70%	0.82%	-5.48%	-11.96%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%

* Technology Sector Average

Performance Comparison

JP:4716

Oracle Japan

17,190.00

5,631.21

48.72%

JP:8056

BIPROGY Inc.

5,500.00

1,564.00

39.74%

JP:4751

CyberAgent

1,410.00

385.52

37.63%

JP:9735

Secom Co

5,395.00

485.04

9.88%

JP:6701

NEC

3,668.00

1,478.65

67.54%

JP:6702

Fujitsu

3,325.00

1,013.13

43.82%

Oracle Japan Earnings Call Summary

Earnings Call Date:Mar 21, 2025

(Q2-2025)

% Change Since: 21.00%|

Next Earnings Date:Jun 26, 2025

Earnings Call Sentiment Neutral

The earnings call presents a cautious optimism with the resolution of previous declines and potential growth opportunities through Alloy, despite some challenges with currency fluctuations and a temporary dip in profit margins.

Q2-2025 Updates

Positive Updates

Resolution of Reactionary Decline

The reactionary decline observed in Q2 due to a previous price increase is expected to be over, with no anticipated carryover into Q3 and Q4. Full-year revenue estimates remain unchanged.

Alloy's Potential Impact

Alloy is a unique offering by Oracle, showing significant interest among system integrators in Japan. It's expected to drive significant revenue and value for Oracle and its partners in the future.

Strategic Headcount Increase

Headcount increased by 9 in the past 3 months, with a focus on strategic deployment to support revenue growth and market expansion. The company remains margin-conscious about hiring.

Negative Updates

Price Fluctuations Due to Yen Decline

Price increases in Japan were driven by a significant decline in the Japanese yen. Future price hikes may occur if the yen continues to fall.

Drop in Q2 Gross Profit Margin

Q2 gross profit margin dropped due to a different sales mix. Overall, the first half margin is consistent with the previous year, and the company expects to maintain similar levels in the future.

Company Guidance

During the Q2 2025 earnings call for 4716.T, the executives provided several key insights into the company’s performance and future expectations. S. Krishna Kumar indicated that the reactionary revenue decline observed in Q2 following a price increase had stabilized and was not expected to continue into Q3 and Q4. He maintained the overall full-year revenue guidance, emphasizing that the company does not provide product-specific forecasts. Regarding pricing strategy, Kumar mentioned that while price hikes are driven by factors such as the depreciation of the Japanese yen, they are not reactionary and are based on comprehensive analysis. He also highlighted the strategic importance of Alloy, a unique offering expected to significantly boost Oracle's revenue in Japan, although contributions from NTT DATA's adoption of Alloy are not anticipated until the end of 2025. Furthermore, he addressed a drop in Q2 gross profit margin, attributing it to a different sales mix, and reassured that margins remain consistent on a year-over-year basis. Lastly, Kumar confirmed a strategic approach to headcount, with an increase of 9 employees in the past three months, suggesting continued hiring aligned with revenue growth and market expansion.

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

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.