OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
89.92 USD
-0.99 (-1.09%)
90.04 USD
+0.12 (+0.13%)
Taking everything into account, OKTA scores 4 out of 10 in our fundamental rating. OKTA was compared to 86 industry peers in the IT Services industry. OKTA has an average financial health and profitability rating. 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.
OKTA had negative earnings in 4 of the past 5 years.
Each year in the past 5 years OKTA had a positive operating cash flow.
1.2 Ratios
OKTA's Return On Assets of 1.39% is in line compared to the rest of the industry. OKTA outperforms 48.84% of its industry peers.
OKTA's Return On Equity of 1.98% is in line compared to the rest of the industry. OKTA outperforms 52.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.20%, OKTA is in line with its industry, outperforming 40.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROIC | 0.2% |
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's Profit Margin of 4.85% is fine compared to the rest of the industry. OKTA outperforms 63.95% of its industry peers.
With a Operating Margin value of 0.86%, OKTA perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
Looking at the Gross Margin, with a value of 76.69%, OKTA belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
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 | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% |
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
OKTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, OKTA has more shares outstanding
OKTA has more shares outstanding than it did 5 years ago.
OKTA has a better debt/assets ratio than last year.
2.2 Solvency
OKTA has an Altman-Z score of 3.46. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
OKTA has a Altman-Z score of 3.46. This is in the better half of the industry: OKTA outperforms 60.47% of its industry peers.
The Debt to FCF ratio of OKTA is 1.14, which is an excellent value as it means it would take OKTA, only 1.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OKTA (1.14) is better than 77.91% of its industry peers.
OKTA has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
OKTA's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. OKTA outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.02
WACC8.77%
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 worse Current ratio (1.47) than 62.79% of 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 worse Quick ratio (1.47) than 62.79% of 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 31.97%, which is quite impressive.
Looking at the last year, OKTA shows a quite strong growth in Revenue. The Revenue has grown by 15.33% in the last year.
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)31.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.39%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
3.2 Future
Based on estimates for the next years, OKTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.89% on average per year.
OKTA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.69% yearly.
EPS Next Y18.76%
EPS Next 2Y13.92%
EPS Next 3Y12.73%
EPS Next 5Y12.89%
Revenue Next Year11.02%
Revenue Next 2Y10.22%
Revenue Next 3Y10.03%
Revenue Next 5Y9.69%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.93, OKTA can be considered very expensive at the moment.
OKTA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of OKTA to the average of the S&P500 Index (27.20), we can say OKTA is valued inline with the index average.
The Price/Forward Earnings ratio is 24.57, 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.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (22.71), we can say OKTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.93 | ||
| Fwd PE | 24.57 |
4.2 Price Multiples
67.44% of the companies in the same industry are cheaper than OKTA, based on the Enterprise Value to EBITDA ratio.
OKTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKTA is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 104.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as OKTA's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y13.92%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.92
-0.99 (-1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change7.08%
Ins Owners0.18%
Ins Owner Change-0.21%
Market Cap15.85B
Analysts76.15
Price Target122.72 (36.48%)
Short Float %4.09%
Short Ratio1.82
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)6.63%
Min EPS beat(2)3.91%
Max EPS beat(2)9.35%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)3.91%
Max EPS beat(4)15.16%
EPS beat(8)8
Avg EPS beat(8)20.79%
EPS beat(12)12
Avg EPS beat(12)51.76%
EPS beat(16)16
Avg EPS beat(16)50.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.35%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)9
Avg Revenue beat(12)0.85%
Revenue beat(16)13
Avg Revenue beat(16)1.79%
PT rev (1m)-0.96%
PT rev (3m)-2.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.93 | ||
| Fwd PE | 24.57 | ||
| P/S | 5.91 | ||
| P/FCF | 21.02 | ||
| P/OCF | 20.53 | ||
| P/B | 2.41 | ||
| P/tB | 15.87 | ||
| EV/EBITDA | 104.64 |
EPS(TTM)3.22
EY3.58%
EPS(NY)3.66
Fwd EY4.07%
FCF(TTM)4.28
FCFY4.76%
OCF(TTM)4.38
OCFY4.87%
SpS15.21
BVpS37.25
TBVpS5.67
PEG (NY)1.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 1.98% | ||
| ROCE | 0.33% | ||
| ROIC | 0.2% | ||
| ROICexc | 0.32% | ||
| ROICexgc | N/A | ||
| OM | 0.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 76.69% | ||
| FCFM | 28.12% |
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 | 0.05 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 19.78% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 677.19% | ||
| Profit Quality | 580% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.46 |
F-Score7
WACC8.77%
ROIC/WACC0.02
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 Y18.76%
EPS Next 2Y13.92%
EPS Next 3Y12.73%
EPS Next 5Y12.89%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y26.15%
Revenue growth 5Y34.81%
Sales Q2Q%12.69%
Revenue Next Year11.02%
Revenue Next 2Y10.22%
Revenue Next 3Y10.03%
Revenue Next 5Y9.69%
EBIT growth 1Y106.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.96%
EBIT Next 3Y17.09%
EBIT Next 5Y10.38%
FCF growth 1Y325.93%
FCF growth 3Y102.97%
FCF growth 5Y92.38%
OCF growth 1Y293.54%
OCF growth 3Y93.14%
OCF growth 5Y68.27%