OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
87.13 USD
+0.16 (+0.18%)
87.05 USD
-0.08 (-0.09%)
Taking everything into account, OKTA scores 5 out of 10 in our fundamental rating. OKTA was compared to 85 industry peers in the IT Services industry. Both the profitability and the financial health of OKTA get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years OKTA had a positive operating cash flow.
1.2 Ratios
OKTA has a Return On Assets (1.76%) which is comparable to the rest of the industry.
OKTA's Return On Equity of 2.49% is in line compared to the rest of the industry. OKTA outperforms 54.12% of its industry peers.
OKTA has a Return On Invested Capital (0.73%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROIC | 0.73% |
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
The Profit Margin of OKTA (6.08%) is better than 69.41% of its industry peers.
With a Operating Margin value of 3.00%, OKTA perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
Looking at the Gross Margin, with a value of 76.91%, OKTA belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
OKTA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OKTA is destroying value.
The number of shares outstanding for OKTA has been increased compared to 1 year ago.
OKTA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OKTA has been reduced compared to a year ago.
2.2 Solvency
OKTA has an Altman-Z score of 3.33. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA has a Altman-Z score of 3.33. This is comparable to the rest of the industry: OKTA outperforms 58.82% of its industry peers.
OKTA 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 | 1.03 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.09
WACC8.45%
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's Current ratio of 1.35 is on the low side compared to the rest of the industry. OKTA is outperformed by 62.35% 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.
OKTA has a worse Quick ratio (1.35) than 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.97% over the past year.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 12.68% in the last year.
Measured over the past years, OKTA shows a very strong growth in Revenue. The Revenue has been growing by 34.81% on average per year.
EPS 1Y (TTM)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
3.2 Future
The Earnings Per Share is expected to grow by 12.89% 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 9.64% yearly.
EPS Next Y21.2%
EPS Next 2Y14.44%
EPS Next 3Y13.57%
EPS Next 5Y12.89%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.12%
Revenue Next 5Y9.64%
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
Based on the Price/Earnings ratio of 27.06, the valuation of OKTA can be described as expensive.
OKTA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.13, OKTA is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.59, the valuation of OKTA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKTA is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (22.35), we can say OKTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 23.59 |
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 63.53% of the companies in the same industry.
67.06% of the companies in the same industry are more expensive than OKTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 64.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OKTA's earnings are expected to grow with 13.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y14.44%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.13
+0.16 (+0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-0.54%
Ins Owners0.21%
Ins Owner Change6.51%
Market Cap15.36B
Revenue(TTM)2.76B
Net Income(TTM)168.00M
Analysts76.15
Price Target121.62 (39.58%)
Short Float %3.8%
Short Ratio1.98
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)7.87%
Min EPS beat(2)6.39%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)8.36%
Min EPS beat(4)3.91%
Max EPS beat(4)13.79%
EPS beat(8)8
Avg EPS beat(8)16.5%
EPS beat(12)12
Avg EPS beat(12)46.64%
EPS beat(16)16
Avg EPS beat(16)46.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.63%
Revenue beat(16)13
Avg Revenue beat(16)1.54%
PT rev (1m)-0.9%
PT rev (3m)-3.45%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 23.59 | ||
| P/S | 5.56 | ||
| P/FCF | 18.33 | ||
| P/OCF | 18.01 | ||
| P/B | 2.27 | ||
| P/tB | 12.78 | ||
| EV/EBITDA | 64.13 |
EPS(TTM)3.22
EY3.7%
EPS(NY)3.69
Fwd EY4.24%
FCF(TTM)4.75
FCFY5.46%
OCF(TTM)4.84
OCFY5.55%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.28
PEG (5Y)N/A
Graham Number52.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROCE | 1.2% | ||
| ROIC | 0.73% | ||
| ROICexc | 1.25% | ||
| ROICexgc | N/A | ||
| OM | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% | ||
| FCFM | 30.33% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 15.96% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 481.92% | ||
| Profit Quality | 498.81% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.33 |
F-Score7
WACC8.45%
ROIC/WACC0.09
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)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
EPS Next Y21.2%
EPS Next 2Y14.44%
EPS Next 3Y13.57%
EPS Next 5Y12.89%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.12%
Revenue Next 5Y9.64%
EBIT growth 1Y136.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.05%
EBIT Next 3Y17.09%
EBIT Next 5Y10.38%
FCF growth 1Y233.06%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y218.03%
OCF growth 3Y93.14%
OCF growth 5Y68.27%
OKTA INC / OKTA FAQ
What is the fundamental rating for OKTA stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKTA.
Can you provide the valuation status for OKTA INC?
ChartMill assigns a valuation rating of 3 / 10 to OKTA INC (OKTA). This can be considered as Overvalued.
How profitable is OKTA INC (OKTA) stock?
OKTA INC (OKTA) has a profitability rating of 4 / 10.
What is the valuation of OKTA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OKTA INC (OKTA) is 27.06 and the Price/Book (PB) ratio is 2.27.
What is the expected EPS growth for OKTA INC (OKTA) stock?
The Earnings per Share (EPS) of OKTA INC (OKTA) is expected to grow by 21.2% in the next year.