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. OKTA has only an average score on both its financial health and profitability. OKTA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OKTA was profitable.
OKTA had a positive operating cash flow in the past year.
OKTA had negative earnings in 4 of the past 5 years.
Each year in the past 5 years OKTA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.39%, OKTA perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
OKTA's Return On Equity of 1.98% is in line compared to the rest of the industry. OKTA outperforms 51.85% of its industry peers.
With a Return On Invested Capital value of 0.20%, OKTA perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROIC | 0.2% |
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 of 4.85%. This is in the better half of the industry: OKTA outperforms 61.73% of its industry peers.
Looking at the Operating Margin, with a value of 0.86%, OKTA is in line with its industry, outperforming 44.44% of the companies in the same industry.
OKTA's Gross Margin of 76.69% is amongst the best of the industry. OKTA outperforms 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 | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OKTA is destroying value.
Compared to 1 year ago, OKTA has more shares outstanding
Compared to 5 years ago, OKTA has more shares outstanding
The debt/assets ratio for OKTA has been reduced compared to a year ago.
2.2 Solvency
OKTA has an Altman-Z score of 3.74. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.74, OKTA is doing good in the industry, outperforming 61.73% of the companies in the same industry.
The Debt to FCF ratio of OKTA is 1.14, which is an excellent value as it means it would take OKTA, only 1.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.14, OKTA is in the better half of the industry, outperforming 79.01% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that OKTA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, OKTA is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.74 |
ROIC/WACC0.02
WACC9.25%
2.3 Liquidity
OKTA has a Current Ratio of 1.47. 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 Current ratio of 1.47. This is in the lower half of the industry: OKTA underperforms 60.49% of its industry peers.
A Quick Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.47, OKTA is not doing good in the industry: 60.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.26% over the past year.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 13.51% 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)49.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32.31%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.51%
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 13.81% on average per year.
The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y18.78%
EPS Next 2Y13.96%
EPS Next 3Y13.64%
EPS Next 5Y13.81%
Revenue Next Year10.23%
Revenue Next 2Y9.96%
Revenue Next 3Y10.29%
Revenue Next 5Y9.62%
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
OKTA is valuated quite expensively with a Price/Earnings ratio of 32.71.
Compared to the rest of the industry, the Price/Earnings ratio of OKTA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of OKTA to the average of the S&P500 Index (27.45), we can say OKTA is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.06, OKTA can be considered very expensive at the moment.
OKTA's Price/Forward Earnings is on the same level as the industry average.
OKTA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKTA is valued a bit more expensive than 67.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.01 | ||
| EV/EBITDA | 116.26 |
4.3 Compensation for Growth
OKTA's 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 13.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y13.96%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.11
+0.97 (+0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners91.15%
Inst Owner Change5.06%
Ins Owners0.51%
Ins Owner Change21.18%
Market Cap17.35B
Analysts76.08
Price Target125.96 (27.09%)
Short Float %4.2%
Short Ratio1.61
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)6.63%
Min EPS beat(2)3.91%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)3.91%
Max EPS beat(4)15.16%
EPS beat(8)8
Avg EPS beat(8)20.79%
EPS beat(12)12
Avg EPS beat(12)51.76%
EPS beat(16)16
Avg EPS beat(16)50.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)9
Avg Revenue beat(12)0.85%
Revenue beat(16)13
Avg Revenue beat(16)1.79%
PT rev (1m)5.33%
PT rev (3m)6.51%
EPS NQ rev (1m)5.89%
EPS NQ rev (3m)5.84%
EPS NY rev (1m)2.51%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.06 | ||
| P/S | 6.47 | ||
| P/FCF | 23.01 | ||
| P/OCF | 22.48 | ||
| P/B | 2.64 | ||
| P/tB | 17.37 | ||
| EV/EBITDA | 116.26 |
EPS(TTM)3.03
EY3.06%
EPS(NY)3.66
Fwd EY3.7%
FCF(TTM)4.31
FCFY4.35%
OCF(TTM)4.41
OCFY4.45%
SpS15.31
BVpS37.51
TBVpS5.71
PEG (NY)1.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROCE | 0.33% | ||
| ROIC | 0.2% | ||
| ROICexc | 0.32% | ||
| ROICexgc | N/A | ||
| OM | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% | ||
| FCFM | 28.12% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 19.78% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 677.19% | ||
| Profit Quality | 580% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.74 |
F-Score7
WACC9.25%
ROIC/WACC0.02
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)49.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32.31%
EPS Next Y18.78%
EPS Next 2Y13.96%
EPS Next 3Y13.64%
EPS Next 5Y13.81%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.51%
Revenue Next Year10.23%
Revenue Next 2Y9.96%
Revenue Next 3Y10.29%
Revenue Next 5Y9.62%
EBIT growth 1Y106.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.74%
EBIT Next 3Y21.22%
EBIT Next 5YN/A
FCF growth 1Y325.93%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y293.54%
OCF growth 3Y93.14%
OCF growth 5Y68.27%