OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - US6792951054 - Common Stock
92.05 USD
+2.27 (+2.53%)
92.05 USD
0 (0%)
Taking everything into account, OKTA scores 4 out of 10 in our fundamental rating. OKTA was compared to 83 industry peers in the IT Services industry. OKTA has only an average score on both its financial health and profitability. 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.
In the past year OKTA had a positive cash flow from operations.
OKTA had negative earnings in 4 of the past 5 years.
OKTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.39%, OKTA is in line with its industry, outperforming 49.40% of the companies in the same industry.
OKTA has a Return On Equity (1.98%) which is in line with its industry peers.
OKTA has a Return On Invested Capital of 0.20%. This is comparable to the rest of the industry: OKTA outperforms 40.96% 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's Profit Margin of 4.85% is fine compared to the rest of the industry. OKTA outperforms 65.06% of its industry peers.
OKTA's Operating Margin of 0.86% is in line compared to the rest of the industry. OKTA outperforms 42.17% of its industry peers.
OKTA has a Gross Margin of 76.69%. This is amongst the best in the industry. OKTA outperforms 93.98% of its industry peers.
OKTA's Gross Margin has been stable in the last couple of years.
| 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
OKTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
OKTA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OKTA has been increased compared to 5 years ago.
OKTA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.48 indicates that OKTA is not in any danger for bankruptcy at the moment.
OKTA has a Altman-Z score (3.48) which is in line with its industry peers.
The Debt to FCF ratio of OKTA is 1.14, which is an excellent value as it means it would take OKTA, only 1.14 years of fcf income to pay off all of its debts.
OKTA has a better Debt to FCF ratio (1.14) than 78.31% 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 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.02
WACC8.67%
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 worse Current ratio (1.47) than 62.65% of its industry peers.
A Quick Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.47, OKTA is not doing good in the industry: 62.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.26% over the past year.
The Revenue has grown by 13.51% in the past year. This is quite good.
OKTA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.81% yearly.
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 13.75% on average per year.
The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y18.76%
EPS Next 2Y13.92%
EPS Next 3Y14.17%
EPS Next 5Y13.75%
Revenue Next Year10.27%
Revenue Next 2Y9.87%
Revenue Next 3Y10.07%
Revenue Next 5Y9.62%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.38, which means the current valuation is very expensive for OKTA.
Compared to the rest of the industry, the Price/Earnings ratio of OKTA is on the same level as its industry peers.
OKTA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
OKTA is valuated quite expensively with a Price/Forward Earnings ratio of 25.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKTA is on the same level as its industry peers.
OKTA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 25.15 |
4.2 Price Multiples
67.47% of the companies in the same industry are cheaper than OKTA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 105.41 |
4.3 Compensation for Growth
OKTA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as OKTA's earnings are expected to grow with 14.17% in the coming years.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y13.92%
EPS Next 3Y14.17%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.05
+2.27 (+2.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change7.08%
Ins Owners0.18%
Ins Owner Change-0.21%
Market Cap16.12B
Analysts75.38
Price Target122.45 (33.03%)
Short Float %4.26%
Short Ratio2.18
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)-2.78%
PT rev (3m)2.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 25.15 | ||
| P/S | 6.01 | ||
| P/FCF | 21.37 | ||
| P/OCF | 20.87 | ||
| P/B | 2.45 | ||
| P/tB | 16.13 | ||
| EV/EBITDA | 105.41 |
EPS(TTM)3.03
EY3.29%
EPS(NY)3.66
Fwd EY3.98%
FCF(TTM)4.31
FCFY4.68%
OCF(TTM)4.41
OCFY4.79%
SpS15.31
BVpS37.51
TBVpS5.71
PEG (NY)1.62
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 | 3.48 |
F-Score7
WACC8.67%
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 2Y13.92%
EPS Next 3Y14.17%
EPS Next 5Y13.75%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.51%
Revenue Next Year10.27%
Revenue Next 2Y9.87%
Revenue Next 3Y10.07%
Revenue Next 5Y9.62%
EBIT growth 1Y106.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.96%
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%