Commvault(US:CVLT) Benzinga·2025-12-22 15:01Core Insights - The article provides a comprehensive analysis of Oracle in comparison to its major competitors in the Software industry, focusing on financial metrics, market position, and growth potential to offer insights for investors [1] Company Overview - Oracle, founded in 1977, offers enterprise applications and infrastructure through various IT deployment models, including on-premises, cloud-based, and hybrid solutions [2] Financial Metrics Comparison - Oracle's Price to Earnings (P/E) ratio is 36.08, which is below the industry average by 0.64x, indicating potential undervaluation [3] - The Price to Book (P/B) ratio of 18.42 is 1.07x above the industry average, suggesting overvaluation in terms of book value [3] - Oracle's Price to Sales (P/S) ratio of 9.11 exceeds the industry average by 1.19x, indicating possible overvaluation in sales performance [3] - The Return on Equity (ROE) stands at 22.68%, which is 13.14% above the industry average, reflecting efficient use of equity to generate profits [3] - Oracle's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $9.51 billion, 2.06x above the industry average, highlighting strong profitability [3] - The gross profit of $10.68 billion is 1.9x above that of its industry, indicating higher earnings from core operations [3] Revenue Growth - The revenue growth rate of 14.22% is below the industry average of 14.71%, suggesting challenges in increasing sales volume [4] Debt-to-Equity Ratio - Oracle's debt-to-equity ratio is 4.15, placing it in a middle position among its top 4 peers, indicating a balanced financial structure with a reasonable debt-equity mix [11] Summary of Key Takeaways - Oracle's low P/E ratio suggests potential undervaluation, while high P/B and P/S ratios indicate overvaluation relative to industry standards [9] - Strong performance in ROE, EBITDA, and gross profit compared to competitors, but lower revenue growth may impact overall valuation [9]