86.47 USD
-0.96 (-1.1%)
86.41 USD
-0.06 (-0.07%)
OKTA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. OKTA has only an average score on both its financial health and 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.
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 of 2.11%. This is comparable to the rest of the industry: OKTA outperforms 52.27% of its industry peers.
OKTA has a Return On Equity (2.83%) which is comparable to the rest of the industry.
The Return On Invested Capital of OKTA (1.05%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 2.83% | ||
| ROIC | 1.05% |
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
With a decent Profit Margin value of 6.87%, OKTA is doing good in the industry, outperforming 68.18% of the companies in the same industry.
OKTA has a Operating Margin of 4.30%. This is comparable to the rest of the industry: OKTA outperforms 55.68% of its industry peers.
OKTA's Gross Margin of 77.08% is amongst the best of the industry. OKTA outperforms 95.45% of its industry peers.
OKTA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 6.87% | ||
| GM | 77.08% |
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.
OKTA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OKTA has been increased compared to 5 years ago.
The debt/assets ratio for OKTA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.06 indicates that OKTA is not in any danger for bankruptcy at the moment.
The Altman-Z score of OKTA (4.06) is better than 67.05% of its industry peers.
There is no outstanding debt for OKTA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.12
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.47 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA has a Current ratio (1.47) which is in line with its industry peers.
OKTA has a Quick 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 Quick ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.22%, which is quite impressive.
OKTA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.12%.
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)26.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.39%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.58%
3.2 Future
The Earnings Per Share is expected to grow by 12.95% 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 9.81% yearly.
EPS Next Y24.62%
EPS Next 2Y15.75%
EPS Next 3Y13.99%
EPS Next 5Y12.95%
Revenue Next Year11.93%
Revenue Next 2Y10.51%
Revenue Next 3Y10.16%
Revenue Next 5Y9.81%
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
The Price/Earnings ratio is 25.66, which means the current valuation is very expensive for OKTA.
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 26.51.
A Price/Forward Earnings ratio of 22.89 indicates a rather expensive valuation of OKTA.
OKTA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. OKTA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 22.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OKTA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.12 | ||
| EV/EBITDA | 53.05 |
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 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y15.75%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
86.47
-0.96 (-1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-1.96%
Ins Owners0.17%
Ins Owner Change-1.19%
Market Cap15.33B
Revenue(TTM)2.84B
Net Income(TTM)195.00M
Analysts76.86
Price Target114.07 (31.92%)
Short Float %3.89%
Short Ratio2.68
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)6.38%
Min EPS beat(2)6.36%
Max EPS beat(2)6.39%
EPS beat(4)4
Avg EPS beat(4)6.5%
Min EPS beat(4)3.91%
Max EPS beat(4)9.35%
EPS beat(8)8
Avg EPS beat(8)11.68%
EPS beat(12)12
Avg EPS beat(12)38.87%
EPS beat(16)16
Avg EPS beat(16)42.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.27%
Revenue beat(8)5
Avg Revenue beat(8)0.07%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)1.2%
PT rev (1m)-6%
PT rev (3m)-7.05%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)2.41%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 22.89 | ||
| P/S | 5.4 | ||
| P/FCF | 17.12 | ||
| P/OCF | 16.8 | ||
| P/B | 2.22 | ||
| P/tB | 11.79 | ||
| EV/EBITDA | 53.05 |
EPS(TTM)3.37
EY3.9%
EPS(NY)3.78
Fwd EY4.37%
FCF(TTM)5.05
FCFY5.84%
OCF(TTM)5.15
OCFY5.95%
SpS16.02
BVpS38.89
TBVpS7.34
PEG (NY)1.04
PEG (5Y)N/A
Graham Number54.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 2.83% | ||
| ROCE | 1.73% | ||
| ROIC | 1.05% | ||
| ROICexc | 1.62% | ||
| ROICexgc | N/A | ||
| OM | 4.3% | ||
| PM (TTM) | 6.87% | ||
| GM | 77.08% | ||
| FCFM | 31.51% |
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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 17.71% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 418.35% | ||
| Profit Quality | 458.97% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 4.06 |
F-Score8
WACC8.62%
ROIC/WACC0.12
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)26.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.39%
EPS Next Y24.62%
EPS Next 2Y15.75%
EPS Next 3Y13.99%
EPS Next 5Y12.95%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%11.58%
Revenue Next Year11.93%
Revenue Next 2Y10.51%
Revenue Next 3Y10.16%
Revenue Next 5Y9.81%
EBIT growth 1Y189.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.1%
EBIT Next 3Y20.91%
EBIT Next 5Y10.38%
FCF growth 1Y126.65%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y120.16%
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.
What is the valuation status of OKTA INC (OKTA) stock?
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.
Can you provide the financial health for OKTA stock?
The financial health rating of OKTA INC (OKTA) is 6 / 10.