OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
91.08 USD
-0.45 (-0.49%)
90.62 USD
-0.46 (-0.51%)
Overall OKTA gets a fundamental rating of 5 out of 10. We evaluated OKTA against 85 industry peers in the IT Services industry. OKTA has only an average score on both its financial health and profitability. OKTA is quite expensive at the moment. 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.
In the past 5 years OKTA reported 4 times negative net income.
In the past 5 years OKTA always reported a positive cash flow from operatings.
1.2 Ratios
OKTA's Return On Assets of 1.76% is in line compared to the rest of the industry. OKTA outperforms 49.41% of its industry peers.
OKTA has a Return On Equity of 2.49%. This is comparable to the rest of the industry: OKTA outperforms 54.12% of its industry peers.
OKTA has a Return On Invested Capital (0.73%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROIC | 0.73% |
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
With a decent Profit Margin value of 6.08%, OKTA is doing good in the industry, outperforming 69.41% of the companies in the same industry.
OKTA has a Operating Margin of 3.00%. This is comparable to the rest of the industry: OKTA outperforms 47.06% of its industry peers.
With an excellent Gross Margin value of 76.91%, OKTA belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
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 | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% |
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.
OKTA has more shares outstanding than it did 1 year ago.
OKTA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OKTA has an improved debt to assets ratio.
2.2 Solvency
OKTA has an Altman-Z score of 3.50. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.50, OKTA is in line with its industry, outperforming 57.65% of the companies in the same industry.
There is no outstanding debt for OKTA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.09
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.35 indicates that OKTA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, OKTA is doing worse than 62.35% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA has a Quick ratio of 1.35. This is in the lower half of the industry: OKTA underperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.97%, which is quite impressive.
The Revenue has grown by 12.68% in the past year. This is quite good.
The Revenue has been growing by 34.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
3.2 Future
OKTA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y21.2%
EPS Next 2Y14.44%
EPS Next 3Y13.57%
EPS Next 5Y12.89%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.12%
Revenue Next 5Y9.64%
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
The Price/Earnings ratio is 28.29, which means the current valuation is very expensive for OKTA.
OKTA's Price/Earnings is on the same level as the industry average.
OKTA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 24.66 indicates a rather expensive valuation of OKTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKTA is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.53. OKTA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 24.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKTA is valued a bit more expensive than the industry average as 63.53% of the companies are valued more cheaply.
67.06% 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 | 19.16 | ||
| EV/EBITDA | 68.67 |
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 13.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y14.44%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.08
-0.45 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-0.54%
Ins Owners0.21%
Ins Owner Change6.51%
Market Cap16.06B
Revenue(TTM)2.76B
Net Income(TTM)168.00M
Analysts76.15
Price Target121.62 (33.53%)
Short Float %3.8%
Short Ratio1.98
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)7.87%
Min EPS beat(2)6.39%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)8.36%
Min EPS beat(4)3.91%
Max EPS beat(4)13.79%
EPS beat(8)8
Avg EPS beat(8)16.5%
EPS beat(12)12
Avg EPS beat(12)46.64%
EPS beat(16)16
Avg EPS beat(16)46.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.63%
Revenue beat(16)13
Avg Revenue beat(16)1.54%
PT rev (1m)-0.9%
PT rev (3m)-3.45%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 24.66 | ||
| P/S | 5.81 | ||
| P/FCF | 19.16 | ||
| P/OCF | 18.82 | ||
| P/B | 2.38 | ||
| P/tB | 13.36 | ||
| EV/EBITDA | 68.67 |
EPS(TTM)3.22
EY3.54%
EPS(NY)3.69
Fwd EY4.05%
FCF(TTM)4.75
FCFY5.22%
OCF(TTM)4.84
OCFY5.31%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.33
PEG (5Y)N/A
Graham Number52.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROCE | 1.2% | ||
| ROIC | 0.73% | ||
| ROICexc | 1.25% | ||
| ROICexgc | N/A | ||
| OM | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% | ||
| FCFM | 30.33% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 15.96% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 481.92% | ||
| Profit Quality | 498.81% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.5 |
F-Score7
WACC8.48%
ROIC/WACC0.09
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)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
EPS Next Y21.2%
EPS Next 2Y14.44%
EPS Next 3Y13.57%
EPS Next 5Y12.89%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.12%
Revenue Next 5Y9.64%
EBIT growth 1Y136.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.05%
EBIT Next 3Y17.09%
EBIT Next 5Y10.38%
FCF growth 1Y233.06%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y218.03%
OCF growth 3Y93.14%
OCF growth 5Y68.27%
OKTA INC / OKTA FAQ
What is the fundamental rating for OKTA stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKTA.
Can you provide the valuation status for OKTA INC?
ChartMill assigns a valuation rating of 3 / 10 to OKTA INC (OKTA). This can be considered as Overvalued.
How profitable is OKTA INC (OKTA) stock?
OKTA INC (OKTA) has a profitability rating of 4 / 10.
What is the valuation of OKTA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OKTA INC (OKTA) is 28.29 and the Price/Book (PB) ratio is 2.38.
What is the expected EPS growth for OKTA INC (OKTA) stock?
The Earnings per Share (EPS) of OKTA INC (OKTA) is expected to grow by 21.2% in the next year.