OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - Nasdaq - US6792951054 - Common Stock - Currency: USD
Overall OKTA gets a fundamental rating of 4 out of 10. We evaluated OKTA against 81 industry peers in the IT Services industry. While OKTA seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, OKTA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
OKTA had positive earnings in the past year.
In the past year OKTA had a positive cash flow from operations.
OKTA had negative earnings in 4 of the past 5 years.
OKTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OKTA has a Return On Assets (0.30%) which is comparable to the rest of the industry.
OKTA's Return On Equity of 0.44% is in line compared to the rest of the industry. OKTA outperforms 50.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.44% | ||
| ROIC | N/A |
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
OKTA has a Profit Margin (1.07%) which is comparable to the rest of the industry.
OKTA has a better Gross Margin (76.32%) than 92.59% of its industry peers.
In the last couple of years the Gross Margin of OKTA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 1.07% | ||
| GM | 76.32% |
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
OKTA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for OKTA has been increased compared to 1 year ago.
The number of shares outstanding for OKTA has been increased compared to 5 years ago.
Compared to 1 year ago, OKTA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.32 indicates that OKTA is not in any danger for bankruptcy at the moment.
The Altman-Z score of OKTA (3.32) is better than 62.96% of its industry peers.
The Debt to FCF ratio of OKTA is 1.18, which is an excellent value as it means it would take OKTA, only 1.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OKTA (1.18) is better than 80.25% of its industry peers.
OKTA has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.05, OKTA is doing good in the industry, outperforming 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 3.32 |
ROIC/WACCN/A
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.35 indicates that OKTA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, OKTA is doing worse than 60.49% of the companies in the same industry.
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 Quick ratio of 1.35. This is comparable to the rest of the industry: OKTA outperforms 41.98% 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 76.25% over the past year.
OKTA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.33%.
The Revenue has been growing by 34.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)76.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.81%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.73%
3.2 Future
Based on estimates for the next years, OKTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.66% on average per year.
OKTA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.94% yearly.
EPS Next Y15.98%
EPS Next 2Y13.21%
EPS Next 3Y8.32%
EPS Next 5Y13.66%
Revenue Next Year10.27%
Revenue Next 2Y10.08%
Revenue Next 3Y10.39%
Revenue Next 5Y9.94%
3.3 Evolution
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
OKTA is valuated quite expensively with a Price/Earnings ratio of 34.73.
OKTA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, OKTA is valued a bit more expensive.
OKTA is valuated quite expensively with a Price/Forward Earnings ratio of 29.94.
OKTA's Price/Forward Earnings ratio is in line with the industry average.
OKTA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.73 | ||
| Fwd PE | 29.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKTA is valued a bit more expensive than 64.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKTA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 528.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OKTA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y13.21%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.93
-2.04 (-2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners87%
Inst Owner Change0.22%
Ins Owners0.64%
Ins Owner Change13.88%
Market Cap17.00B
Analysts75.74
Price Target117.83 (20.32%)
Short Float %2.69%
Short Ratio1.35
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)8.85%
Min EPS beat(2)3.91%
Max EPS beat(2)13.79%
EPS beat(4)4
Avg EPS beat(4)12.43%
Min EPS beat(4)3.91%
Max EPS beat(4)16.87%
EPS beat(8)8
Avg EPS beat(8)28.46%
EPS beat(12)12
Avg EPS beat(12)52.91%
EPS beat(16)16
Avg EPS beat(16)53.38%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.35%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.58%
Revenue beat(12)10
Avg Revenue beat(12)1.3%
Revenue beat(16)14
Avg Revenue beat(16)2.05%
PT rev (1m)9.31%
PT rev (3m)11.48%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)13.8%
EPS NY rev (1m)9.1%
EPS NY rev (3m)9.26%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.73 | ||
| Fwd PE | 29.94 | ||
| P/S | 6.51 | ||
| P/FCF | 23.29 | ||
| P/OCF | 22.67 | ||
| P/B | 2.65 | ||
| P/tB | 20.76 | ||
| EV/EBITDA | 528.87 |
EPS(TTM)2.82
EY2.88%
EPS(NY)3.27
Fwd EY3.34%
FCF(TTM)4.21
FCFY4.29%
OCF(TTM)4.32
OCFY4.41%
SpS15.03
BVpS36.9
TBVpS4.72
PEG (NY)2.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 1.07% | ||
| GM | 76.32% | ||
| FCFM | 27.97% |
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
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 3Y3.16%
GM growth 5Y0.95%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 13.96 | ||
| Cap/Depr | 22.73% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 3000% | ||
| Profit Quality | 2607.14% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.32 |
F-Score7
WACC9.12%
ROIC/WACCN/A
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)76.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.81%
EPS Next Y15.98%
EPS Next 2Y13.21%
EPS Next 3Y8.32%
EPS Next 5Y13.66%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.73%
Revenue Next Year10.27%
Revenue Next 2Y10.08%
Revenue Next 3Y10.39%
Revenue Next 5Y9.94%
EBIT growth 1Y86.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.52%
EBIT Next 3Y22.6%
EBIT Next 5YN/A
FCF growth 1Y49.59%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y46.48%
OCF growth 3Y93.14%
OCF growth 5Y68.27%