OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - Nasdaq - US6792951054 - Common Stock - Currency: USD
Overall OKTA gets a fundamental rating of 5 out of 10. We evaluated OKTA against 82 industry peers in the IT Services industry. The financial health of OKTA is average, but there are quite some concerns on its profitability. OKTA is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year OKTA was profitable.
In the past year OKTA had a positive cash flow from operations.
OKTA had negative earnings in each of the past 5 years.
In the past 5 years OKTA always reported a positive cash flow from operatings.
1.2 Ratios
OKTA has a Return On Assets of -0.43%. This is comparable to the rest of the industry: OKTA outperforms 47.44% of its industry peers.
OKTA's Return On Equity of -0.62% is in line compared to the rest of the industry. OKTA outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -0.62% | ||
| ROIC | N/A |
ROA(3y)-7.31%
ROA(5y)-8.14%
ROE(3y)-11.76%
ROE(5y)-25.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OKTA has a better Gross Margin (76.12%) than 92.31% of its industry peers.
OKTA's Gross Margin has been stable in the last couple of years.
OKTA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.12% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
OKTA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, OKTA has more shares outstanding
Compared to 5 years ago, OKTA has more shares outstanding
Compared to 1 year ago, OKTA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.46 indicates that OKTA is not in any danger for bankruptcy at the moment.
OKTA's Altman-Z score of 3.46 is in line compared to the rest of the industry. OKTA outperforms 56.41% of its industry peers.
OKTA has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
OKTA's Debt to FCF ratio of 1.40 is fine compared to the rest of the industry. OKTA outperforms 75.64% of its industry peers.
OKTA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
OKTA's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. OKTA outperforms 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 3.46 |
ROIC/WACCN/A
WACC10.09%
2.3 Liquidity
A Current Ratio of 1.34 indicates that OKTA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, OKTA is doing worse than 62.82% of the companies in the same industry.
OKTA has a Quick Ratio of 1.34. This is a normal value and indicates that OKTA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OKTA (1.34) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.24%, which is quite impressive.
OKTA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 151.98% yearly.
The Revenue has grown by 16.82% in the past year. This is quite good.
The Revenue has been growing by 41.47% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)110.24%
EPS 3Y151.98%
EPS 5YN/A
EPS Q2Q%52.27%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y39.4%
Revenue growth 5Y41.47%
Sales Q2Q%13.87%
3.2 Future
OKTA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.79% yearly.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 14.27% on average per year.
EPS Next Y76.4%
EPS Next 2Y36.88%
EPS Next 3Y28.17%
EPS Next 5Y34.79%
Revenue Next Year15.68%
Revenue Next 2Y11.66%
Revenue Next 3Y11.08%
Revenue Next 5Y14.27%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.74, the valuation of OKTA can be described as expensive.
OKTA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, OKTA is valued at the same level.
With a Price/Forward Earnings ratio of 30.94, OKTA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as OKTA.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (22.68), we can say OKTA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 30.94 |
4.2 Price Multiples
OKTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKTA is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OKTA's earnings are expected to grow with 28.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y36.88%
EPS Next 3Y28.17%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.75
-2.44 (-2.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner Change0.94%
Ins Owners0.57%
Ins Owner Change23.98%
Market Cap15.89B
Analysts75.32
Price Target105.9 (14.18%)
Short Float %2.9%
Short Ratio1.39
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)14.47%
Min EPS beat(2)13.79%
Max EPS beat(2)15.16%
EPS beat(4)4
Avg EPS beat(4)16.86%
Min EPS beat(4)13.79%
Max EPS beat(4)21.62%
EPS beat(8)8
Avg EPS beat(8)55.06%
EPS beat(12)12
Avg EPS beat(12)54.84%
EPS beat(16)16
Avg EPS beat(16)91.55%
Revenue beat(2)2
Avg Revenue beat(2)0.26%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.35%
Revenue beat(4)4
Avg Revenue beat(4)0.41%
Min Revenue beat(4)0.15%
Max Revenue beat(4)0.95%
Revenue beat(8)7
Avg Revenue beat(8)0.87%
Revenue beat(12)11
Avg Revenue beat(12)1.68%
Revenue beat(16)15
Avg Revenue beat(16)2.29%
PT rev (1m)0.19%
PT rev (3m)4.44%
EPS NQ rev (1m)10.41%
EPS NQ rev (3m)15.58%
EPS NY rev (1m)0.29%
EPS NY rev (3m)5.96%
Revenue NQ rev (1m)2.81%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 30.94 | ||
| P/S | 6.27 | ||
| P/FCF | 25.97 | ||
| P/OCF | 24.91 | ||
| P/B | 2.54 | ||
| P/tB | 23.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY2.88%
EPS(NY)3
Fwd EY3.23%
FCF(TTM)3.57
FCFY3.85%
OCF(TTM)3.72
OCFY4.01%
SpS14.78
BVpS36.56
TBVpS3.89
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -0.62% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.12% | ||
| FCFM | 24.16% |
ROA(3y)-7.31%
ROA(5y)-8.14%
ROE(3y)-11.76%
ROE(5y)-25.04%
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 3Y0.17%
GM growth 5Y0.76%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 30.95% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.46 |
F-Score6
WACC10.09%
ROIC/WACCN/A
Cap/Depr(3y)21.45%
Cap/Depr(5y)53.65%
Cap/Sales(3y)1.2%
Cap/Sales(5y)2.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.24%
EPS 3Y151.98%
EPS 5YN/A
EPS Q2Q%52.27%
EPS Next Y76.4%
EPS Next 2Y36.88%
EPS Next 3Y28.17%
EPS Next 5Y34.79%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y39.4%
Revenue growth 5Y41.47%
Sales Q2Q%13.87%
Revenue Next Year15.68%
Revenue Next 2Y11.66%
Revenue Next 3Y11.08%
Revenue Next 5Y14.27%
EBIT growth 1Y74.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year111.1%
EBIT Next 3Y40.21%
EBIT Next 5Y30.55%
FCF growth 1Y12428.8%
FCF growth 3Y64.02%
FCF growth 5YN/A
OCF growth 1Y2638.9%
OCF growth 3Y58.74%
OCF growth 5Y102.06%