Oracle’s (NYSE: ORCL) Five-year-old earnings growth tracks the solid shareholder return

The worst result after purchasing shares in a company (assuming no leverage) would be if you lose all the money you put in. But on the bright side if you buy shares in a high -quality company for it Right price, you can get well over 100%. In the long term Oracle Corporation (NEWS: ORCL) Shareholders would be aware of this as the share has risen 246% in five years. It’s even up 14% in the last week.

The past week has proven to be lucrative for Oracle Investors, so let’s see if Fundamentals ran the company’s five -year results.

See our latest analysis for Oracle

While the effective market hypothesis is still taught by some, it is proven that the markets are over -reactive dynamic systems and investors are not always rational. An imperfect but simple way to consider how the market’s perception of a company has changed is to compare the change in earnings per year. Share (EPS) with the stock exchange movement.

Over the course of six months, Oracle managed to grow his earnings per year. Share of 5.1% per year. This EPS growth is lower than the average annual increase in stock price of 28%. This suggests that market participants are keeping the business to a greater extent these days. This is not necessarily surprising considering the five-year track record for earnings growth.

You can see below how EPS has changed over time (discover the exact values ​​by clicking the image).

It is probably worth noting that the CEO is paid less than the median of companies of similar size. But even though CEO fees are always worth controlling, it is really important questions whether the company can grow earnings in the future. This free Interactive Report on Oracle’s Earnings, revenue and cash flow is a good place to start if you want to investigate the stock further.

In addition to measuring share price returns, investors should also consider the total shareholder return (TSR). TSR is a return calculation that accounts for the value of cash yield (provided that any dividend received was reinvested) and the calculated value of any reduced capital recordings and spin-offs. It is reasonable to say that TSR gives a more complete picture for shares that pay a dividend. We note that TSR for Oracle in the last 5 years was 273%, which is better than the above -mentioned share price. And there is no cost to guess that dividend payments are largely explaining the divergence!

It is good to see that Oracle has rewarded shareholders with a total shareholder return of 63% in the last twelve months. It includes the yield. It is better than the annual return of 30% over half a decade, suggesting that the company recently manages. Given the momentum of the stock price remains strong, it may be worth looking into the stock so that you do not miss an option. It is always interesting to track stock price performance in the longer term. But to understand Oracle better, we need to consider many other factors. Take, for example, risks – Oracle has 1 Warning sign We think you need to be aware of.

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