OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
93.37 USD
-0.23 (-0.25%)
93.08 USD
-0.29 (-0.31%)
Taking everything into account, OKTA scores 4 out of 10 in our fundamental rating. OKTA was compared to 86 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.
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 1.39%, OKTA perfoms like the industry average, outperforming 48.84% 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 (0.20%) which is in line with 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 63.95% of its industry peers.
OKTA has a Operating Margin (0.86%) which is comparable to the rest of the industry.
OKTA has a better Gross Margin (76.69%) than 94.19% 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.
OKTA has more shares outstanding than it did 5 years ago.
OKTA has a better debt/assets ratio than last year.
2.2 Solvency
OKTA has an Altman-Z score of 3.56. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA has a better Altman-Z score (3.56) than 62.79% of 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 77.91% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that OKTA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.05, OKTA is doing good in the industry, outperforming 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.02
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
The Current ratio of OKTA (1.47) is worse than 62.79% of its industry peers.
A Quick Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
The Quick ratio of OKTA (1.47) is worse than 62.79% of its industry peers.
| 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 31.97% over the past year.
The Revenue has grown by 15.33% in the past year. This is quite good.
Measured over the past years, OKTA shows a very strong growth in Revenue. The Revenue has been growing by 34.81% on average per year.
EPS 1Y (TTM)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
Revenue 1Y (TTM)15.33%
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.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y18.76%
EPS Next 2Y13.92%
EPS Next 3Y12.73%
EPS Next 5Y12.89%
Revenue Next Year11.02%
Revenue Next 2Y10.22%
Revenue Next 3Y10.03%
Revenue Next 5Y9.69%
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
With a Price/Earnings ratio of 29.00, OKTA can be considered very expensive at the moment.
OKTA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, OKTA is valued at the same level.
A Price/Forward Earnings ratio of 25.51 indicates a quite expensive valuation of OKTA.
OKTA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, OKTA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
OKTA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OKTA is more expensive than 67.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.83 | ||
| EV/EBITDA | 108.8 |
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 12.73% in the coming years.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y13.92%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.37
-0.23 (-0.25%)
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 Cap16.46B
Analysts76.15
Price Target122.72 (31.43%)
Short Float %4.09%
Short Ratio1.82
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)-0.96%
PT rev (3m)-2.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 25.51 | ||
| P/S | 6.14 | ||
| P/FCF | 21.83 | ||
| P/OCF | 21.32 | ||
| P/B | 2.51 | ||
| P/tB | 16.48 | ||
| EV/EBITDA | 108.8 |
EPS(TTM)3.22
EY3.45%
EPS(NY)3.66
Fwd EY3.92%
FCF(TTM)4.28
FCFY4.58%
OCF(TTM)4.38
OCFY4.69%
SpS15.21
BVpS37.25
TBVpS5.67
PEG (NY)1.55
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 | 3.56 |
F-Score7
WACC8.86%
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)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
EPS Next Y18.76%
EPS Next 2Y13.92%
EPS Next 3Y12.73%
EPS Next 5Y12.89%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
Revenue Next Year11.02%
Revenue Next 2Y10.22%
Revenue Next 3Y10.03%
Revenue Next 5Y9.69%
EBIT growth 1Y106.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.96%
EBIT Next 3Y17.09%
EBIT Next 5Y10.38%
FCF growth 1Y325.93%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y293.54%
OCF growth 3Y93.14%
OCF growth 5Y68.27%