OKTA INC (OKTA)
US6792951054 - Common Stock
Overall OKTA gets a fundamental rating of 5 out of 10. We evaluated OKTA against 83 industry peers in the IT Services industry. While OKTA seems to be doing ok healthwise, there are quite some concerns on its profitability. OKTA is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year OKTA was profitable.
OKTA had a positive operating cash flow in the past year.
In the past 5 years OKTA always reported negative net income.
OKTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OKTA (-1.50%) is comparable to the rest of the industry.
OKTA has a Return On Equity (-2.22%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.22% | ||
| 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 Gross Margin of 75.82%. This is amongst the best in the industry. OKTA outperforms 92.59% 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 | 75.82% |
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
OKTA has an Altman-Z score of 2.74. This is not the best score and indicates that OKTA is in the grey zone with still only limited risk for bankruptcy at the moment.
OKTA's Altman-Z score of 2.74 is in line compared to the rest of the industry. OKTA outperforms 49.38% of its industry peers.
OKTA has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
The Debt to FCF ratio of OKTA (1.83) is better than 71.60% of its industry peers.
OKTA has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
OKTA has a better Debt to Equity ratio (0.18) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 2.74 |
ROIC/WACCN/A
WACC10.76%
2.3 Liquidity
OKTA has a Current Ratio of 1.83. This is a normal value and indicates that OKTA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.83, OKTA is in line with its industry, outperforming 56.79% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that OKTA should not have too much problems paying its short term obligations.
OKTA has a Quick ratio (1.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 194.33%, which is quite impressive.
The Earnings Per Share has been growing by 151.98% 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 18.73%.
Measured over the past years, OKTA shows a very strong growth in Revenue. The Revenue has been growing by 41.47% on average per year.
EPS 1Y (TTM)194.33%
EPS 3Y151.98%
EPS 5YN/A
EPS Q2Q%132.26%
Revenue 1Y (TTM)18.73%
Revenue growth 3Y39.4%
Revenue growth 5Y41.47%
Sales Q2Q%16.19%
3.2 Future
OKTA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.48% yearly.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 14.16% on average per year.
EPS Next Y66.45%
EPS Next 2Y35.95%
EPS Next 3Y29.19%
EPS Next 5Y35.48%
Revenue Next Year14.41%
Revenue Next 2Y12.09%
Revenue Next 3Y12.07%
Revenue Next 5Y14.16%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.78 indicates a quite expensive valuation of 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 29.70.
The Price/Forward Earnings ratio is 27.05, which means the current valuation is very expensive for OKTA.
OKTA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (24.16), we can say OKTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.78 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
OKTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKTA is cheaper than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| 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 29.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y35.95%
EPS Next 3Y29.19%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OKTA INC
NASDAQ:OKTA (12/3/2024, 12:51:53 PM)
79.995
-0.85 (-1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.78 | ||
| Fwd PE | 27.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)194.33%
EPS 3Y151.98%
EPS 5Y
EPS Q2Q%
EPS Next Y66.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.73%
Revenue growth 3Y39.4%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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