OOMA INC (OOMA) Stock Fundamental Analysis
NYSE:OOMA - New York Stock Exchange, Inc. - US6834161019 - Common Stock - Currency: USD
Overall OOMA gets a fundamental rating of 4 out of 10. We evaluated OOMA against 282 industry peers in the Software industry. While OOMA seems to be doing ok healthwise, there are quite some concerns on its profitability. OOMA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
OOMA had positive earnings in the past year.
In the past year OOMA had a positive cash flow from operations.
In the past 5 years OOMA always reported negative net income.
In the past 5 years OOMA always reported a positive cash flow from operatings.
1.2 Ratios
OOMA has a Return On Assets (-4.63%) which is comparable to the rest of the industry.
OOMA has a Return On Equity (-8.09%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -8.09% | ||
| ROIC | N/A |
ROA(3y)-2.66%
ROA(5y)-2.46%
ROE(3y)-5.01%
ROE(5y)-4.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of OOMA (60.74%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OOMA has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for OOMA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.45%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
OOMA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, OOMA has more shares outstanding
Compared to 5 years ago, OOMA has more shares outstanding
OOMA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.54 indicates that OOMA is not in any danger for bankruptcy at the moment.
OOMA has a Altman-Z score of 3.54. This is in the better half of the industry: OOMA outperforms 62.77% of its industry peers.
There is no outstanding debt for OOMA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.54 |
ROIC/WACCN/A
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.09 indicates that OOMA should not have too much problems paying its short term obligations.
OOMA has a Current ratio of 1.09. This is in the lower half of the industry: OOMA underperforms 70.92% of its industry peers.
OOMA has a Quick Ratio of 1.09. This is a bad value and indicates that OOMA is not financially healthy enough and could expect problems in meeting its short term obligations.
OOMA has a worse Quick ratio (0.83) than 79.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
OOMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.36%, which is quite impressive.
The Earnings Per Share has been growing by 10.25% on average over the past years. This is quite good.
The Revenue has grown by 8.50% in the past year. This is quite good.
Measured over the past years, OOMA shows a quite strong growth in Revenue. The Revenue has been growing by 11.12% on average per year.
EPS 1Y (TTM)30.36%
EPS 3Y10.25%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)8.5%
Revenue growth 3Y10.13%
Revenue growth 5Y11.12%
Sales Q2Q%4.05%
3.2 Future
Based on estimates for the next years, OOMA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.11% on average per year.
OOMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.51% yearly.
EPS Next Y22.5%
EPS Next 2Y17.58%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue Next Year4.45%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y6.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.67, OOMA is valued on the expensive side.
Based on the Price/Earnings ratio, OOMA is valued cheaper than 84.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of OOMA to the average of the S&P500 Index (27.15), we can say OOMA is valued slightly cheaper.
OOMA is valuated correctly with a Price/Forward Earnings ratio of 13.93.
Based on the Price/Forward Earnings ratio, OOMA is valued cheaper than 86.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. OOMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OOMA indicates a somewhat cheap valuation: OOMA is cheaper than 63.83% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 86.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 53.04 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as OOMA's earnings are expected to grow with 22.92% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y17.58%
EPS Next 3Y22.92%
5. Dividend
5.1 Amount
OOMA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.9
+0.33 (+2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.4%
Inst Owner Change3.61%
Ins Owners6.55%
Ins Owner Change15.39%
Market Cap355.52M
Analysts81.54
Price Target18.26 (41.55%)
Short Float %2.26%
Short Ratio4.49
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)18.51%
Min EPS beat(2)7.43%
Max EPS beat(2)29.6%
EPS beat(4)4
Avg EPS beat(4)16.42%
Min EPS beat(4)7.43%
Max EPS beat(4)29.6%
EPS beat(8)6
Avg EPS beat(8)10.49%
EPS beat(12)10
Avg EPS beat(12)12.69%
EPS beat(16)14
Avg EPS beat(16)18.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.31%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)-2.19%
PT rev (3m)-2.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)3.56%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 13.93 | ||
| P/S | 1.38 | ||
| P/FCF | 17.64 | ||
| P/OCF | 13.36 | ||
| P/B | 4.17 | ||
| P/tB | 8.88 | ||
| EV/EBITDA | 53.04 |
EPS(TTM)0.73
EY5.66%
EPS(NY)0.93
Fwd EY7.18%
FCF(TTM)0.73
FCFY5.67%
OCF(TTM)0.97
OCFY7.48%
SpS9.32
BVpS3.09
TBVpS1.45
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -8.09% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.74% | ||
| FCFM | 7.85% |
ROA(3y)-2.66%
ROA(5y)-2.46%
ROE(3y)-5.01%
ROE(5y)-4.92%
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 3Y-0.45%
GM growth 5Y0.08%
F-Score5
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 49.08% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 429.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.54 |
F-Score5
WACC8.82%
ROIC/WACCN/A
Cap/Depr(3y)63.69%
Cap/Depr(5y)72.34%
Cap/Sales(3y)2.51%
Cap/Sales(5y)2.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.36%
EPS 3Y10.25%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y22.5%
EPS Next 2Y17.58%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue 1Y (TTM)8.5%
Revenue growth 3Y10.13%
Revenue growth 5Y11.12%
Sales Q2Q%4.05%
Revenue Next Year4.45%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y6.51%
EBIT growth 1Y-73.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.96%
EBIT Next 3Y32.93%
EBIT Next 5Y30.41%
FCF growth 1Y229.72%
FCF growth 3Y101.61%
FCF growth 5YN/A
OCF growth 1Y116.79%
OCF growth 3Y58.67%
OCF growth 5YN/A