OKTA INC (OKTA)
US6792951054 - Common Stock
OKTA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While OKTA seems to be doing ok healthwise, there are quite some concerns on its profitability. OKTA is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year OKTA was profitable.
In the past year OKTA had a positive cash flow from operations.
OKTA had negative earnings in each of the past 5 years.
Each year in the past 5 years OKTA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.95%, OKTA is in line with its industry, outperforming 44.05% of the companies in the same industry.
OKTA has a Return On Equity of -6.03%. This is comparable to the rest of the industry: OKTA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.95% | ||
| ROE | -6.03% | ||
| ROIC | N/A |
ROA(3y)-7.31%
ROA(5y)-8.14%
ROE(3y)-11.76%
ROE(5y)-25.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OKTA has a Gross Margin of 74.33%. This is amongst the best in the industry. OKTA outperforms 90.48% of its industry peers.
In the last couple of years the Gross Margin of OKTA has remained more or less at the same level.
OKTA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.33% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
OKTA does not have a ROIC to compare to the WACC, probably because it is not profitable.
OKTA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OKTA has more shares outstanding
OKTA has a better debt/assets ratio than last year.
2.2 Solvency
OKTA has an Altman-Z score of 2.93. This is not the best score and indicates that OKTA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of OKTA (2.93) is comparable to the rest of the industry.
The Debt to FCF ratio of OKTA is 2.36, which is a good value as it means it would take OKTA, 2.36 years of fcf income to pay off all of its debts.
OKTA's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. OKTA outperforms 69.05% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that OKTA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, OKTA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.93 |
ROIC/WACCN/A
WACC10.19%
2.3 Liquidity
A Current Ratio of 1.67 indicates that OKTA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.67, OKTA perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA has a Quick ratio (1.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2353.52% over the past year.
Measured over the past years, OKTA shows a very strong growth in Earnings Per Share. The EPS has been growing by 151.98% on average per year.
The Revenue has grown by 21.80% in the past year. This is a very strong growth!
OKTA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.47% yearly.
EPS 1Y (TTM)2353.52%
EPS 3Y151.98%
EPS 5YN/A
EPS growth Q2Q110%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y39.4%
Revenue growth 5Y41.47%
Revenue growth Q2Q18.58%
3.2 Future
OKTA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.21% yearly.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 14.61% on average per year.
EPS Next Y48.03%
EPS Next 2Y32.49%
EPS Next 3Y29.32%
EPS Next 5Y39.21%
Revenue Next Year11.7%
Revenue Next 2Y12.22%
Revenue Next 3Y13.45%
Revenue Next 5Y14.61%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 60.34 indicates a quite expensive valuation of OKTA.
OKTA's Price/Earnings is on the same level as the industry average.
OKTA is valuated expensively when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
OKTA is valuated quite expensively with a Price/Forward Earnings ratio of 40.76.
The rest of the industry has a similar Price/Forward Earnings ratio as OKTA.
OKTA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.34 | ||
| Fwd PE | 40.76 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as OKTA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.12 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 29.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y32.49%
EPS Next 3Y29.32%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OKTA INC
NASDAQ:OKTA (5/3/2024, 7:10:15 PM)
After market: 96.01 -0.54 (-0.56%)96.55
+1.07 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.34 | ||
| Fwd PE | 40.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.95% | ||
| ROE | -6.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2353.52%
EPS 3Y151.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y48.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.8%
Revenue growth 3Y39.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y