OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - Nasdaq - US6792951054 - Common Stock - Currency: USD
OKTA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. The financial health of OKTA is average, but there are quite some concerns on its 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.
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 0.30%, OKTA is in line with its industry, outperforming 45.12% of the companies in the same industry.
The Return On Equity of OKTA (0.44%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.44% | ||
| ROIC | N/A |
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 1.07% is in line compared to the rest of the industry. OKTA outperforms 47.56% of its industry peers.
The Gross Margin of OKTA (76.32%) is better than 92.68% of its industry peers.
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 | N/A | ||
| PM (TTM) | 1.07% | ||
| GM | 76.32% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, OKTA has more shares outstanding
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 4.15. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA's Altman-Z score of 4.15 is fine compared to the rest of the industry. OKTA outperforms 64.63% of its industry peers.
OKTA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
OKTA has a Debt to FCF ratio of 1.18. This is in the better half of the industry: OKTA outperforms 75.61% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that OKTA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, OKTA is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 4.15 |
ROIC/WACCN/A
WACC9.3%
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.
OKTA has a Current ratio of 1.35. This is in the lower half of the industry: OKTA underperforms 60.98% of its industry peers.
OKTA has a Quick 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.
Looking at the Quick ratio, with a value of 1.35, OKTA is in line with its industry, outperforming 40.24% of the companies in the same industry.
| 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 76.25%, which is quite impressive.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 15.33% in the last year.
The Revenue has been growing by 34.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)76.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.81%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 13.66% on average over the next years. This is quite good.
OKTA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.94% yearly.
EPS Next Y15.87%
EPS Next 2Y13.19%
EPS Next 3Y8.31%
EPS Next 5Y13.66%
Revenue Next Year10.23%
Revenue Next 2Y10.05%
Revenue Next 3Y10.3%
Revenue Next 5Y9.94%
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
OKTA is valuated quite expensively with a Price/Earnings ratio of 44.08.
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 rather expensive valuation when compared to the S&P500 average which is at 26.03.
OKTA is valuated quite expensively with a Price/Forward Earnings ratio of 38.04.
The rest of the industry has a similar Price/Forward Earnings ratio as OKTA.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, OKTA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.08 | ||
| Fwd PE | 38.04 |
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 67.07% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as OKTA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.56 | ||
| EV/EBITDA | 696.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y13.19%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:OKTA (5/22/2025, 10:15:08 AM)
124.31
+2.25 (+1.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners87%
Inst Owner Change4.36%
Ins Owners0.64%
Ins Owner Change14.39%
Market Cap21.58B
Analysts76
Price Target119.59 (-3.8%)
Short Float %3.16%
Short Ratio1.24
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)8.85%
Min EPS beat(2)3.91%
Max EPS beat(2)13.79%
EPS beat(4)4
Avg EPS beat(4)12.43%
Min EPS beat(4)3.91%
Max EPS beat(4)16.87%
EPS beat(8)8
Avg EPS beat(8)28.46%
EPS beat(12)12
Avg EPS beat(12)52.91%
EPS beat(16)16
Avg EPS beat(16)53.38%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.35%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.58%
Revenue beat(12)10
Avg Revenue beat(12)1.3%
Revenue beat(16)14
Avg Revenue beat(16)2.05%
PT rev (1m)1.49%
PT rev (3m)12.93%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)10.71%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.08 | ||
| Fwd PE | 38.04 | ||
| P/S | 8.27 | ||
| P/FCF | 29.56 | ||
| P/OCF | 28.77 | ||
| P/B | 3.37 | ||
| P/tB | 26.35 | ||
| EV/EBITDA | 696.42 |
EPS(TTM)2.82
EY2.27%
EPS(NY)3.27
Fwd EY2.63%
FCF(TTM)4.21
FCFY3.38%
OCF(TTM)4.32
OCFY3.48%
SpS15.03
BVpS36.9
TBVpS4.72
PEG (NY)2.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 1.07% | ||
| GM | 76.32% | ||
| FCFM | 27.97% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 13.96 | ||
| Cap/Depr | 22.73% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 3000% | ||
| Profit Quality | 2607.14% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 4.15 |
F-Score7
WACC9.3%
ROIC/WACCN/A
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)76.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.81%
EPS Next Y15.87%
EPS Next 2Y13.19%
EPS Next 3Y8.31%
EPS Next 5Y13.66%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.73%
Revenue Next Year10.23%
Revenue Next 2Y10.05%
Revenue Next 3Y10.3%
Revenue Next 5Y9.94%
EBIT growth 1Y86.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.52%
EBIT Next 3Y22.6%
EBIT Next 5YN/A
FCF growth 1Y49.59%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y46.48%
OCF growth 3Y93.14%
OCF growth 5Y68.27%