OOMA INC (OOMA)
US6834161019 - Common Stock
OOMA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. While OOMA seems to be doing ok healthwise, there are quite some concerns on its profitability. OOMA has a correct valuation and a medium growth rate.
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.
Of the past 5 years OOMA 4 years had a positive operating cash flow.
1.2 Ratios
OOMA has a Return On Assets of -0.53%. This is comparable to the rest of the industry: OOMA outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of -1.08%, OOMA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.08% | ||
| ROIC | N/A |
ROA(3y)-1.67%
ROA(5y)-6.2%
ROE(3y)-3.49%
ROE(5y)-16.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OOMA has a better Gross Margin (62.19%) than 66.67% of its industry peers.
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 | 62.19% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.08%
GM growth 5Y0.99%
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.
OOMA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OOMA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that OOMA is in the distress zone and has some risk of bankruptcy.
OOMA has a better Altman-Z score (1.66) than 91.67% of its industry peers.
The Debt to FCF ratio of OOMA is 2.62, which is a good value as it means it would take OOMA, 2.62 years of fcf income to pay off all of its debts.
OOMA's Debt to FCF ratio of 2.62 is amongst the best of the industry. OOMA outperforms 86.11% of its industry peers.
OOMA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
OOMA's Debt to Equity ratio of 0.20 is amongst the best of the industry. OOMA outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 1.66 |
ROIC/WACCN/A
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.24 indicates that OOMA should not have too much problems paying its short term obligations.
OOMA has a better Current ratio (1.24) than 61.11% of its industry peers.
OOMA has a Quick Ratio of 1.24. 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 Quick ratio of 0.85. This is comparable to the rest of the industry: OOMA outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.41% over the past year.
The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
The Revenue has grown by 9.51% in the past year. This is quite good.
OOMA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.88% yearly.
EPS 1Y (TTM)7.41%
EPS 3Y5.78%
EPS 5YN/A
EPS growth Q2Q-18.75%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y11.91%
Revenue growth 5Y12.88%
Revenue growth Q2Q9.16%
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 24.63% on average per year.
Based on estimates for the next years, OOMA will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y-6.53%
EPS Next 2Y4.12%
EPS Next 3Y9.18%
EPS Next 5Y24.63%
Revenue Next Year6.28%
Revenue Next 2Y7.22%
Revenue Next 3Y7.63%
Revenue Next 5Y8.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 reasonably with a Price/Earnings ratio of 11.62.
Compared to the rest of the industry, the Price/Earnings ratio of OOMA indicates a somewhat cheap valuation: OOMA is cheaper than 77.78% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. OOMA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.43, OOMA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OOMA indicates a somewhat cheap valuation: OOMA is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, OOMA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OOMA is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
OOMA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 44.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.12%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
OOMA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OOMA INC
NYSE:OOMA (4/24/2024, 1:10:24 PM)
6.74
-0.09 (-1.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap177.94M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 12.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 62.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.41%
EPS 3Y5.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.51%
Revenue growth 3Y11.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y