OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
89.35 USD
-4.29 (-4.58%)
88.4 USD
-0.95 (-1.06%)
Taking everything into account, OKTA scores 5 out of 10 in our fundamental rating. OKTA was compared to 86 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. While showing a medium growth rate, OKTA is valued expensive at the moment.
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.
In the past 5 years OKTA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.76%, OKTA perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
OKTA has a Return On Equity (2.49%) which is in line with 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
The Profit Margin of OKTA (6.08%) is better than 68.60% of its industry peers.
OKTA has a Operating Margin (3.00%) which is comparable to the rest of the industry.
OKTA has a Gross Margin of 76.91%. This is amongst the best in the industry. OKTA outperforms 95.35% of its industry peers.
OKTA's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, OKTA has more shares outstanding
Compared to 5 years ago, OKTA has more shares outstanding
The debt/assets ratio for OKTA has been reduced compared to a year ago.
2.2 Solvency
OKTA has an Altman-Z score of 3.58. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA has a better Altman-Z score (3.58) than 60.47% of its industry peers.
OKTA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.09
WACC8.18%
2.3 Liquidity
OKTA has a Current Ratio of 1.35. This is a normal value and indicates that OKTA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OKTA (1.35) is worse than 62.79% of its industry peers.
A Quick Ratio of 1.35 indicates that OKTA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.35, OKTA is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
| 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.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 12.68% in the last year.
OKTA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.81% yearly.
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
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 9.64% on average per year.
EPS Next Y21.58%
EPS Next 2Y14.47%
EPS Next 3Y12.89%
EPS Next 5Y12.89%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.11%
Revenue Next 5Y9.64%
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 27.75, which means the current valuation is very expensive for OKTA.
OKTA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.02, OKTA is valued at the same level.
The Price/Forward Earnings ratio is 24.18, which indicates a rather expensive current valuation of OKTA.
OKTA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (22.57), we can say OKTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OKTA indicates a slightly more expensive valuation: OKTA is more expensive than 65.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 70.77 |
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 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y14.47%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.35
-4.29 (-4.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change0.01%
Ins Owners0.21%
Ins Owner Change7.15%
Market Cap15.75B
Analysts76.15
Price Target121.38 (35.85%)
Short Float %4.23%
Short Ratio1.89
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)-1.4%
PT rev (3m)-3.64%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 24.18 | ||
| P/S | 5.7 | ||
| P/FCF | 18.8 | ||
| P/OCF | 18.47 | ||
| P/B | 2.33 | ||
| P/tB | 13.1 | ||
| EV/EBITDA | 70.77 |
EPS(TTM)3.22
EY3.6%
EPS(NY)3.69
Fwd EY4.14%
FCF(TTM)4.75
FCFY5.32%
OCF(TTM)4.84
OCFY5.42%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.29
PEG (5Y)N/A
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
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 | ||
| 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 | 3.58 |
F-Score7
WACC8.18%
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 Y21.58%
EPS Next 2Y14.47%
EPS Next 3Y12.89%
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 3Y10.11%
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%