OKTA INC (OKTA) Fundamental Analysis & Valuation
NASDAQ:OKTA • US6792951054
80.7478 USD
+1.14 (+1.43%)
Last: Mar 11, 2026, 10:50 AM
This OKTA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall OKTA gets a fundamental rating of 5 out of 10. We evaluated OKTA against 87 industry peers in the IT Services industry. OKTA has only an average score on both its financial health and profitability. OKTA shows excellent growth, but is valued quite expensive already.
1. OKTA Profitability Analysis
1.1 Basic Checks
- OKTA had positive earnings in the past year.
- In the past year OKTA had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: OKTA reported negative net income in multiple years.
- In the past 5 years OKTA always reported a positive cash flow from operatings.
1.2 Ratios
- OKTA has a Return On Assets (2.42%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 3.36%, OKTA is in line with its industry, outperforming 57.47% of the companies in the same industry.
- The Return On Invested Capital of OKTA (1.64%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.36% | ||
| ROIC | 1.64% |
ROA(3y)-0.41%
ROA(5y)-3.84%
ROE(3y)-0.74%
ROE(5y)-6.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of OKTA (8.05%) is better than 73.56% of its industry peers.
- Looking at the Operating Margin, with a value of 5.24%, OKTA is in line with its industry, outperforming 56.32% of the companies in the same industry.
- Looking at the Gross Margin, with a value of 77.36%, OKTA belongs to the top of the industry, outperforming 96.55% 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 | 5.24% | ||
| PM (TTM) | 8.05% | ||
| GM | 77.36% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.09%
GM growth 5Y0.91%
2. OKTA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OKTA is destroying value.
- OKTA has more shares outstanding than it did 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 3.24. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
- OKTA's Altman-Z score of 3.24 is fine compared to the rest of the industry. OKTA outperforms 60.92% 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 | 0.41 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.19
WACC8.65%
2.3 Liquidity
- OKTA has a Current Ratio of 1.43. 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 1.43. This is comparable to the rest of the industry: OKTA outperforms 41.38% of its industry peers.
- A Quick Ratio of 1.43 indicates that OKTA should not have too much problems paying its short term obligations.
- OKTA has a Quick ratio (1.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. OKTA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 23.76% over the past year.
- The Earnings Per Share has been growing by 103.50% on average over the past years. This is a very strong growth
- OKTA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.84%.
- OKTA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.43% yearly.
EPS 1Y (TTM)23.76%
EPS 3YN/A
EPS 5Y103.5%
EPS Q2Q%15.38%
Revenue 1Y (TTM)11.84%
Revenue growth 3Y16.25%
Revenue growth 5Y28.43%
Sales Q2Q%11.58%
3.2 Future
- Based on estimates for the next years, OKTA will show a small growth in Earnings Per Share. The EPS will grow by 6.83% on average per year.
- Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 9.03% on average per year.
EPS Next Y7.48%
EPS Next 2Y8.7%
EPS Next 3Y10.77%
EPS Next 5Y6.83%
Revenue Next Year9.11%
Revenue Next 2Y9.25%
Revenue Next 3Y8.77%
Revenue Next 5Y9.03%
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 decreasing.
- 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. OKTA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.14, the valuation of OKTA can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of OKTA is on the same level as its industry peers.
- OKTA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
- With a Price/Forward Earnings ratio of 21.53, OKTA is valued on the expensive side.
- OKTA's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, OKTA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
- OKTA's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 41.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.09
PEG (5Y)0.22
EPS Next 2Y8.7%
EPS Next 3Y10.77%
5. OKTA Dividend Analysis
5.1 Amount
- OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
OKTA Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:OKTA (3/11/2026, 10:50:09 AM)
80.7478
+1.14 (+1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)03-04 2026-03-04/amc
Earnings (Next)05-25 2026-05-25
Inst Owners91.79%
Inst Owner Change0.04%
Ins Owners0.38%
Ins Owner Change37.8%
Market Cap14.31B
Revenue(TTM)2.92B
Net Income(TTM)235.00M
Analysts77.65
Price Target113.89 (41.04%)
Short Float %4.38%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.29%
Min EPS beat(2)4.23%
Max EPS beat(2)6.36%
EPS beat(4)4
Avg EPS beat(4)6.58%
Min EPS beat(4)4.23%
Max EPS beat(4)9.35%
EPS beat(8)8
Avg EPS beat(8)9.51%
EPS beat(12)12
Avg EPS beat(12)21.17%
EPS beat(16)16
Avg EPS beat(16)41.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)-0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)7
Avg Revenue beat(12)0.27%
Revenue beat(16)11
Avg Revenue beat(16)0.89%
PT rev (1m)-0.76%
PT rev (3m)0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)0%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.53 | ||
| P/S | 4.9 | ||
| P/FCF | 16.58 | ||
| P/OCF | 16.19 | ||
| P/B | 2.04 | ||
| P/tB | 10.07 | ||
| EV/EBITDA | 41.01 |
EPS(TTM)3.49
EY4.32%
EPS(NY)3.75
Fwd EY4.65%
FCF(TTM)4.87
FCFY6.03%
OCF(TTM)4.99
OCFY6.18%
SpS16.47
BVpS39.49
TBVpS8.02
PEG (NY)3.09
PEG (5Y)0.22
Graham Number55.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.36% | ||
| ROCE | 2.14% | ||
| ROIC | 1.64% | ||
| ROICexc | 2.54% | ||
| ROICexgc | N/A | ||
| OM | 5.24% | ||
| PM (TTM) | 8.05% | ||
| GM | 77.36% | ||
| FCFM | 29.56% |
ROA(3y)-0.41%
ROA(5y)-3.84%
ROE(3y)-0.74%
ROE(5y)-6.29%
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 3Y3.09%
GM growth 5Y0.91%
F-Score9
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 21.88% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 355.02% | ||
| Profit Quality | 367.23% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 3.24 |
F-Score9
WACC8.65%
ROIC/WACC0.19
Cap/Depr(3y)24.39%
Cap/Depr(5y)21.79%
Cap/Sales(3y)0.85%
Cap/Sales(5y)1.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.76%
EPS 3YN/A
EPS 5Y103.5%
EPS Q2Q%15.38%
EPS Next Y7.48%
EPS Next 2Y8.7%
EPS Next 3Y10.77%
EPS Next 5Y6.83%
Revenue 1Y (TTM)11.84%
Revenue growth 3Y16.25%
Revenue growth 5Y28.43%
Sales Q2Q%11.58%
Revenue Next Year9.11%
Revenue Next 2Y9.25%
Revenue Next 3Y8.77%
Revenue Next 5Y9.03%
EBIT growth 1Y342.86%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.26%
EBIT Next 3Y15.56%
EBIT Next 5Y8.39%
FCF growth 1Y18.22%
FCF growth 3Y139.27%
FCF growth 5Y50.82%
OCF growth 1Y17.87%
OCF growth 3Y117.43%
OCF growth 5Y47.18%
OKTA INC / OKTA FAQ
What is the fundamental rating for OKTA stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKTA.
What is the valuation status of OKTA INC (OKTA) stock?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the financial health for OKTA stock?
The financial health rating of OKTA INC (OKTA) is 6 / 10.