OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
86.785 USD
-0.92 (-1.05%)
Overall OKTA gets a fundamental rating of 5 out of 10. We evaluated OKTA against 86 industry peers in the IT Services industry. Both the profitability and the financial health of OKTA get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year OKTA had a positive cash flow from operations.
In the past 5 years OKTA reported 4 times negative net income.
OKTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.76%, OKTA perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
With a Return On Equity value of 2.49%, OKTA perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
OKTA has a Return On Invested Capital of 0.73%. This is comparable to the rest of the industry: OKTA outperforms 43.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROIC | 0.73% |
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
OKTA has a better Profit Margin (6.08%) than 68.60% of its industry peers.
OKTA's Operating Margin of 3.00% is in line compared to the rest of the industry. OKTA outperforms 46.51% of its industry peers.
OKTA's Gross Margin of 76.91% is amongst the best of the industry. OKTA outperforms 95.35% of its industry peers.
In the last couple of years the Gross Margin of OKTA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% |
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.
The number of shares outstanding for OKTA has been increased compared to 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
OKTA has an Altman-Z score of 3.36. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA has a Altman-Z score (3.36) which is in line with 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 | 1.03 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.09
WACC8.22%
2.3 Liquidity
OKTA has a Current Ratio of 1.35. This is a normal value and indicates that OKTA is financially healthy and should not expect problems in meeting its short term obligations.
OKTA's Current ratio of 1.35 is on the low side compared to the rest of the industry. OKTA is outperformed by 62.79% of its industry peers.
OKTA has a Quick Ratio of 1.35. 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 of 1.35. This is in the lower half of the industry: OKTA underperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
OKTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.97%, which is quite impressive.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 12.68% in the last year.
OKTA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.81% yearly.
EPS 1Y (TTM)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
3.2 Future
The Earnings Per Share is expected to grow by 12.89% 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 9.64% yearly.
EPS Next Y21.58%
EPS Next 2Y14.47%
EPS Next 3Y12.89%
EPS Next 5Y12.89%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.11%
Revenue Next 5Y9.64%
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
OKTA is valuated quite expensively with a Price/Earnings ratio of 26.95.
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 27.29.
The Price/Forward Earnings ratio is 23.49, which indicates a rather expensive current 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.
The average S&P500 Price/Forward Earnings ratio is at 22.85. OKTA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
OKTA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OKTA is more expensive than 62.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKTA indicates a somewhat cheap valuation: OKTA is cheaper than 67.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 64.87 |
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 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y14.47%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:OKTA (10/17/2025, 1:25:48 PM)
86.785
-0.92 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-0.15%
Ins Owners0.21%
Ins Owner Change6.51%
Market Cap15.30B
Analysts76.15
Price Target121.38 (39.86%)
Short Float %4.23%
Short Ratio1.89
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)7.87%
Min EPS beat(2)6.39%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)8.36%
Min EPS beat(4)3.91%
Max EPS beat(4)13.79%
EPS beat(8)8
Avg EPS beat(8)16.5%
EPS beat(12)12
Avg EPS beat(12)46.64%
EPS beat(16)16
Avg EPS beat(16)46.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.63%
Revenue beat(16)13
Avg Revenue beat(16)1.54%
PT rev (1m)-1.4%
PT rev (3m)-3.64%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 23.49 | ||
| P/S | 5.54 | ||
| P/FCF | 18.26 | ||
| P/OCF | 17.94 | ||
| P/B | 2.27 | ||
| P/tB | 12.73 | ||
| EV/EBITDA | 64.87 |
EPS(TTM)3.22
EY3.71%
EPS(NY)3.69
Fwd EY4.26%
FCF(TTM)4.75
FCFY5.48%
OCF(TTM)4.84
OCFY5.58%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.49% | ||
| ROCE | 1.2% | ||
| ROIC | 0.73% | ||
| ROICexc | 1.25% | ||
| ROICexgc | N/A | ||
| OM | 3% | ||
| PM (TTM) | 6.08% | ||
| GM | 76.91% | ||
| FCFM | 30.33% |
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
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 3Y3.16%
GM growth 5Y0.95%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 15.96% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 481.92% | ||
| Profit Quality | 498.81% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.36 |
F-Score7
WACC8.22%
ROIC/WACC0.09
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)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
EPS Next Y21.58%
EPS Next 2Y14.47%
EPS Next 3Y12.89%
EPS Next 5Y12.89%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
Revenue Next Year11.06%
Revenue Next 2Y10.2%
Revenue Next 3Y10.11%
Revenue Next 5Y9.64%
EBIT growth 1Y136.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.05%
EBIT Next 3Y17.09%
EBIT Next 5Y10.38%
FCF growth 1Y233.06%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y218.03%
OCF growth 3Y93.14%
OCF growth 5Y68.27%