OOMA INC (OOMA) Stock Fundamental Analysis
NYSE:OOMA - New York Stock Exchange, Inc. - US6834161019 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OOMA. OOMA was compared to 283 industry peers in the Software industry. While OOMA seems to be doing ok healthwise, there are quite some concerns on its profitability. OOMA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OOMA was profitable.
In the past year OOMA had a positive cash flow from operations.
In the past 5 years OOMA always reported negative net income.
OOMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OOMA has a Return On Assets (-4.63%) which is comparable to the rest of the industry.
With a Return On Equity value of -8.09%, OOMA perfoms like the industry average, outperforming 54.06% of the companies in the same industry.
| 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
Looking at the Gross Margin, with a value of 60.74%, OOMA is in line with its industry, outperforming 41.34% of the companies in the same industry.
OOMA's Gross Margin has been stable in the last couple of years.
OOMA 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 | 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 3.70 indicates that OOMA is not in any danger for bankruptcy at the moment.
OOMA has a Altman-Z score of 3.70. This is in the better half of the industry: OOMA outperforms 64.31% of its industry peers.
OOMA 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 | 0 | ||
| Altman-Z | 3.7 |
ROIC/WACCN/A
WACC9.81%
2.3 Liquidity
OOMA has a Current Ratio of 1.09. This is a normal value and indicates that OOMA is financially healthy and should not expect problems in meeting its short term obligations.
OOMA has a worse Current ratio (1.09) than 70.67% of its industry peers.
A Quick Ratio of 0.83 indicates that OOMA may have some problems paying its short term obligations.
OOMA has a Quick ratio of 0.83. This is amonst the worse of the industry: OOMA underperforms 80.21% 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.
OOMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.50%.
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 Y18.29%
EPS Next 2Y16.07%
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.
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
Based on the Price/Earnings ratio of 18.14, the valuation of OOMA can be described as rather expensive.
Based on the Price/Earnings ratio, OOMA is valued cheaply inside the industry as 82.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.52. OOMA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.67, the valuation of OOMA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 83.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.25. OOMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
OOMA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 85.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 110.66 |
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.
OOMA's earnings are expected to grow with 22.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y16.07%
EPS Next 3Y22.92%
5. Dividend
5.1 Amount
No dividends for OOMA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.24
+0.06 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.77%
Inst Owner Change3.61%
Ins Owners7.91%
Ins Owner Change15.26%
Market Cap364.89M
Analysts81.54
Price Target18.26 (37.92%)
Short Float %2.05%
Short Ratio4
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)0%
PT rev (3m)2.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.3%
EPS NY rev (1m)0%
EPS NY rev (3m)11.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 14.67 | ||
| P/S | 1.42 | ||
| P/FCF | 18.1 | ||
| P/OCF | 13.71 | ||
| P/B | 4.28 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 110.66 |
EPS(TTM)0.73
EY5.51%
EPS(NY)0.9
Fwd EY6.82%
FCF(TTM)0.73
FCFY5.52%
OCF(TTM)0.97
OCFY7.29%
SpS9.32
BVpS3.09
TBVpS1.45
PEG (NY)0.99
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 | 64.08% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 852.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.7 |
F-Score5
WACC9.81%
ROIC/WACCN/A
Cap/Depr(3y)75.59%
Cap/Depr(5y)79.48%
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 Y18.29%
EPS Next 2Y16.07%
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