OKTA INC (OKTA) Stock Fundamental Analysis
NASDAQ:OKTA - Nasdaq - US6792951054 - Common Stock
We assign a fundamental rating of 5 out of 10 to OKTA. OKTA was compared to 82 industry peers in the IT Services industry. OKTA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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 48.10% of its industry peers.
OKTA's Return On Equity of -0.62% is in line compared to the rest of the industry. OKTA outperforms 51.90% 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's Gross Margin of 76.12% is amongst the best of the industry. OKTA outperforms 92.41% of its industry peers.
In the last couple of years the Gross Margin of OKTA has remained more or less at the same level.
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
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 3.16 indicates that OKTA is not in any danger for bankruptcy at the moment.
OKTA has a Altman-Z score (3.16) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.40, OKTA is in the better half of the industry, outperforming 73.42% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that OKTA is not too dependend on debt financing.
The Debt to Equity ratio of OKTA (0.06) is better than 75.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 3.16 |
ROIC/WACCN/A
WACC11.1%
2.3 Liquidity
OKTA has a Current 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.
With a Current ratio value of 1.34, OKTA is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.34 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA has a worse Quick ratio (1.34) than 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.24% over the past year.
Measured over the past years, OKTA shows a very strong growth in Earnings Per Share. The EPS has been growing by 151.98% on average per year.
OKTA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.82%.
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.
OKTA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.08% yearly.
EPS Next Y75.89%
EPS Next 2Y36.78%
EPS Next 3Y28.65%
EPS Next 5Y34.79%
Revenue Next Year15.68%
Revenue Next 2Y11.66%
Revenue Next 3Y11.1%
Revenue Next 5Y13.08%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 33.48 indicates a quite expensive valuation of OKTA.
The rest of the industry has a similar Price/Earnings ratio as OKTA.
Compared to an average S&P500 Price/Earnings ratio of 28.29, OKTA is valued at the same level.
A Price/Forward Earnings ratio of 29.87 indicates a quite expensive valuation of OKTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKTA is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (24.44), we can say OKTA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.48 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, OKTA is valued a bit cheaper than the industry average as 64.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.03 | ||
| 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 28.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y36.78%
EPS Next 3Y28.65%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OKTA INC
NASDAQ:OKTA (1/21/2025, 7:58:09 PM)
After market: 89.42 +0.02 (+0.02%)89.4
+2.11 (+2.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner Change0.34%
Ins Owners0.57%
Ins Owner Change-3.04%
Market Cap15.32B
Analysts74.47
Price Target105.7 (18.23%)
Short Float %2.48%
Short Ratio1.2
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)7.39%
PT rev (3m)-2.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)0%
EPS NY rev (3m)5.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.48 | ||
| Fwd PE | 29.87 | ||
| P/S | 6.05 | ||
| P/FCF | 25.03 | ||
| P/OCF | 24.01 | ||
| P/B | 2.45 | ||
| P/tB | 23 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY2.99%
EPS(NY)2.99
Fwd EY3.35%
FCF(TTM)3.57
FCFY4%
OCF(TTM)3.72
OCFY4.16%
SpS14.78
BVpS36.56
TBVpS3.89
PEG (NY)0.44
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 | 3.16 |
F-Score6
WACC11.1%
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 Y75.89%
EPS Next 2Y36.78%
EPS Next 3Y28.65%
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 3Y11.1%
Revenue Next 5Y13.08%
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%