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. The financial health of OOMA is average, but 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.
OOMA had a positive operating cash flow in the past year.
OOMA had negative earnings in each of the past 5 years.
Each year in the past 5 years OOMA had a positive operating cash flow.
1.2 Ratios
OOMA has a Return On Assets (-3.30%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -5.59%, OOMA is in line with its industry, outperforming 56.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.3% | ||
| ROE | -5.59% | ||
| 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
With a Gross Margin value of 60.96%, OOMA perfoms like the industry average, outperforming 41.13% of the companies in the same industry.
OOMA's Gross Margin has been stable in the last couple of years.
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 | 60.96% |
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.
OOMA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OOMA has been increased compared to 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 3.46 indicates that OOMA is not in any danger for bankruptcy at the moment.
The Altman-Z score of OOMA (3.46) is better than 62.77% 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 | 3.46 |
ROIC/WACCN/A
WACC10.22%
2.3 Liquidity
OOMA has a Current Ratio of 1.16. This is a normal value and indicates that OOMA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.16, OOMA is not doing good in the industry: 66.31% of the companies in the same industry are doing better.
OOMA has a Quick Ratio of 1.16. This is a bad value and indicates that OOMA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, OOMA is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.36% over the past year.
The Earnings Per Share has been growing by 10.25% on average over the past years. This is quite good.
Looking at the last year, OOMA shows a small growth in Revenue. The Revenue has grown by 7.01% in the last year.
OOMA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.12% yearly.
EPS 1Y (TTM)30.36%
EPS 3Y10.25%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)7.01%
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.
Based on estimates for the next years, OOMA will show a small growth in Revenue. The Revenue will grow by 6.51% on average per year.
EPS Next Y22.34%
EPS Next 2Y18.42%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue Next Year4.4%
Revenue Next 2Y5.27%
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
OOMA is valuated correctly with a Price/Earnings ratio of 15.63.
OOMA's Price/Earnings ratio is rather cheap when compared to the industry. OOMA is cheaper than 84.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of OOMA to the average of the S&P500 Index (26.99), we can say OOMA is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.14 indicates a correct valuation of OOMA.
Based on the Price/Forward Earnings ratio, OOMA is valued cheaply inside the industry as 89.72% of the companies are valued more expensively.
OOMA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 12.14 |
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 74.11% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OOMA is valued cheaper than 87.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 30.84 |
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)0.7
PEG (5Y)N/A
EPS Next 2Y18.42%
EPS Next 3Y22.92%
5. Dividend
5.1 Amount
No dividends for OOMA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.41
+0.11 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.4%
Inst Owner Change0.24%
Ins Owners6.55%
Ins Owner Change15.46%
Market Cap314.92M
Analysts81.54
Price Target18.23 (59.77%)
Short Float %2.44%
Short Ratio3.82
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)18.84%
Min EPS beat(2)8.07%
Max EPS beat(2)29.6%
EPS beat(4)4
Avg EPS beat(4)13.42%
Min EPS beat(4)7.43%
Max EPS beat(4)29.6%
EPS beat(8)6
Avg EPS beat(8)9.58%
EPS beat(12)10
Avg EPS beat(12)11.46%
EPS beat(16)14
Avg EPS beat(16)17.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.26%
Revenue beat(16)3
Avg Revenue beat(16)-1.06%
PT rev (1m)-0.14%
PT rev (3m)-2.32%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)9.05%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 12.14 | ||
| P/S | 1.21 | ||
| P/FCF | 15.36 | ||
| P/OCF | 11.78 | ||
| P/B | 3.59 | ||
| P/tB | 7.18 | ||
| EV/EBITDA | 30.84 |
EPS(TTM)0.73
EY6.4%
EPS(NY)0.94
Fwd EY8.23%
FCF(TTM)0.74
FCFY6.51%
OCF(TTM)0.97
OCFY8.49%
SpS9.4
BVpS3.18
TBVpS1.59
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.3% | ||
| ROE | -5.59% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.96% | ||
| FCFM | 7.9% |
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-Score6
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.21% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 281.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.46 |
F-Score6
WACC10.22%
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 Y22.34%
EPS Next 2Y18.42%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue 1Y (TTM)7.01%
Revenue growth 3Y10.13%
Revenue growth 5Y11.12%
Sales Q2Q%4.05%
Revenue Next Year4.4%
Revenue Next 2Y5.27%
Revenue Next 3Y5.34%
Revenue Next 5Y6.51%
EBIT growth 1Y30.46%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.96%
EBIT Next 3Y32.93%
EBIT Next 5Y30.41%
FCF growth 1Y398.88%
FCF growth 3Y101.61%
FCF growth 5YN/A
OCF growth 1Y189.53%
OCF growth 3Y58.67%
OCF growth 5YN/A