OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - Nasdaq - US6792951054 - Common Stock - Currency: USD
OKTA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. Both the profitability and the financial health of OKTA get a neutral evaluation. Nothing too spectacular is happening here. OKTA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OKTA had positive earnings in the past year.
OKTA had a positive operating cash flow in the past year.
OKTA had negative earnings in 4 of the past 5 years.
Each year in the past 5 years OKTA had a positive operating cash flow.
1.2 Ratios
OKTA has a Return On Assets (1.39%) which is in line with its industry peers.
The Return On Equity of OKTA (1.98%) is comparable to the rest of the industry.
OKTA has a Return On Invested Capital of 0.20%. This is comparable to the rest of the industry: OKTA outperforms 41.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROIC | 0.2% |
ROA(3y)-4.14%
ROA(5y)-5.94%
ROE(3y)-6.83%
ROE(5y)-14.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OKTA has a better Profit Margin (4.85%) than 62.20% of its industry peers.
OKTA's Operating Margin of 0.86% is in line compared to the rest of the industry. OKTA outperforms 43.90% of its industry peers.
The Gross Margin of OKTA (76.69%) is better than 92.68% of its industry peers.
In the last couple of years the Gross Margin of OKTA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OKTA is destroying value.
Compared to 1 year ago, OKTA has more shares outstanding
The number of shares outstanding for OKTA has been increased compared to 5 years ago.
Compared to 1 year ago, OKTA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.46 indicates that OKTA is not in any danger for bankruptcy at the moment.
OKTA's Altman-Z score of 3.46 is in line compared to the rest of the industry. OKTA outperforms 58.54% of its industry peers.
OKTA has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
OKTA has a Debt to FCF ratio of 1.14. This is in the better half of the industry: OKTA outperforms 79.27% of its industry peers.
OKTA has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
OKTA has a Debt to Equity ratio of 0.05. This is in the better half of the industry: OKTA outperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.02
WACC9.27%
2.3 Liquidity
OKTA has a Current Ratio of 1.47. This is a normal value and indicates that OKTA is financially healthy and should not expect problems in meeting its short term obligations.
OKTA has a Current ratio (1.47) which is in line with its industry peers.
A Quick Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA's Quick ratio of 1.47 is in line compared to the rest of the industry. OKTA outperforms 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.26%, which is quite impressive.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 13.51% in the last year.
The Revenue has been growing by 34.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)49.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32.31%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.51%
3.2 Future
Based on estimates for the next years, OKTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y18.76%
EPS Next 2Y13.93%
EPS Next 3Y14.36%
EPS Next 5Y13.81%
Revenue Next Year10.23%
Revenue Next 2Y9.98%
Revenue Next 3Y10.34%
Revenue Next 5Y9.62%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OKTA is valuated quite expensively with a Price/Earnings ratio of 30.22.
OKTA's Price/Earnings ratio is in line with the industry average.
OKTA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.01, which means the current valuation is very expensive for OKTA.
OKTA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, OKTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 25.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKTA is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
62.20% of the companies in the same industry are more expensive than OKTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.26 | ||
| EV/EBITDA | 104.66 |
4.3 Compensation for Growth
OKTA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OKTA's earnings are expected to grow with 14.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y13.93%
EPS Next 3Y14.36%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.56
-2.85 (-3.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners91.15%
Inst Owner Change0.28%
Ins Owners0.51%
Ins Owner Change20.54%
Market Cap16.03B
Analysts76.08
Price Target125.96 (37.57%)
Short Float %4.2%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.63%
Min EPS beat(2)3.91%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)3.91%
Max EPS beat(4)15.16%
EPS beat(8)8
Avg EPS beat(8)20.79%
EPS beat(12)12
Avg EPS beat(12)51.76%
EPS beat(16)16
Avg EPS beat(16)50.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)9
Avg Revenue beat(12)0.85%
Revenue beat(16)13
Avg Revenue beat(16)1.79%
PT rev (1m)-0.1%
PT rev (3m)6.9%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)2.49%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 25.01 | ||
| P/S | 5.98 | ||
| P/FCF | 21.26 | ||
| P/OCF | 20.76 | ||
| P/B | 2.44 | ||
| P/tB | 16.05 | ||
| EV/EBITDA | 104.66 |
EPS(TTM)3.03
EY3.31%
EPS(NY)3.66
Fwd EY4%
FCF(TTM)4.31
FCFY4.7%
OCF(TTM)4.41
OCFY4.82%
SpS15.31
BVpS37.51
TBVpS5.71
PEG (NY)1.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROCE | 0.33% | ||
| ROIC | 0.2% | ||
| ROICexc | 0.32% | ||
| ROICexgc | N/A | ||
| OM | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% | ||
| FCFM | 28.12% |
ROA(3y)-4.14%
ROA(5y)-5.94%
ROE(3y)-6.83%
ROE(5y)-14.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.95%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 19.78% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 677.19% | ||
| Profit Quality | 580% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.46 |
F-Score7
WACC9.27%
ROIC/WACC0.02
Cap/Depr(3y)23.82%
Cap/Depr(5y)26.85%
Cap/Sales(3y)1.02%
Cap/Sales(5y)1.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32.31%
EPS Next Y18.76%
EPS Next 2Y13.93%
EPS Next 3Y14.36%
EPS Next 5Y13.81%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.51%
Revenue Next Year10.23%
Revenue Next 2Y9.98%
Revenue Next 3Y10.34%
Revenue Next 5Y9.62%
EBIT growth 1Y106.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.74%
EBIT Next 3Y21.22%
EBIT Next 5YN/A
FCF growth 1Y325.93%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y293.54%
OCF growth 3Y93.14%
OCF growth 5Y68.27%