Stocks of Oracle Corporation Japan (TSE:4716) weakened following a recent earnings report. A review of the company’s earnings and revenue history as of July 2, 2024 revealed some interesting findings that shareholders should consider. An analysis of the cash flow versus earnings of Oracle Corporation Japan showed that the company’s free cash flow significantly exceeded its statutory profit, with an accrual ratio of -0.32 in the year to May 2024. This positive result indicates strong conversion of earnings into free cash flow, suggesting that the company’s underlying earnings potential may be even better than it appears.
Earnings per share for Oracle Corporation Japan have grown by 13% per year over the past three years, further indicating the company’s positive performance. While it is important to assess how much a company’s statutory earnings represent its true earnings power, it is also valuable to consider what analysts are forecasting for the future profitability of the company.
There are various ways to evaluate a company beyond earnings analysis, such as looking at return on equity, insider holdings, and valuation metrics. Understanding these factors can provide a more comprehensive view of a company’s financial health. A detailed analysis including fair value estimates, risks, dividends, insider trading, and financial health of Oracle Corporation Japan is available for further exploration.
Overall, the analysis suggests that Oracle Corporation Japan may be undervalued based on its strong earnings performance and positive cash flow. While the article provides valuable insights, it is important to conduct further research and consider individual financial goals before making investment decisions. For more information and analysis, readers are encouraged to reach out directly to the editorial team at Simply Wall St.
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https://simplywall.st/stocks/jp/software/tse-4716/oracle-corporation-japan-shares/news/we-like-oracle-corporation-japans-tse4716-earnings-for-more/amp
