OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
84.69 USD
-0.89 (-1.04%)
84.68 USD
-0.01 (-0.01%)
Taking everything into account, OKTA scores 5 out of 10 in our fundamental rating. OKTA was compared to 84 industry peers in the IT Services industry. OKTA has an average financial health and profitability rating. OKTA is valied quite expensively at the moment, while it does show a decent growth rate.
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.
OKTA had negative earnings in 4 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 (1.76%) which is in line with its industry peers.
The Return On Equity of OKTA (2.49%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.73%, OKTA is in line with its industry, outperforming 42.86% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 6.08%, OKTA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
OKTA's Operating Margin of 3.00% is in line compared to the rest of the industry. OKTA outperforms 45.24% of its industry peers.
OKTA has a better Gross Margin (76.91%) than 96.43% of its industry peers.
OKTA's Gross Margin has been stable in the last couple of years.
| 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.
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.
OKTA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.28 indicates that OKTA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.28, OKTA is in line with its industry, outperforming 58.33% of the companies in the same industry.
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 | 3.28 |
ROIC/WACC0.09
WACC8.46%
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.
With a Current ratio value of 1.35, OKTA is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
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's Quick ratio of 1.35 is on the low side compared to the rest of the industry. OKTA is outperformed by 61.90% 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.
The Revenue has been growing by 34.81% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, OKTA will show a quite strong growth in Revenue. The Revenue will grow by 9.64% on average per year.
EPS Next Y21.69%
EPS Next 2Y14.55%
EPS Next 3Y13.23%
EPS Next 5Y12.89%
Revenue Next Year11.06%
Revenue Next 2Y10.22%
Revenue Next 3Y10.13%
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
The Price/Earnings ratio is 26.30, which means the current valuation is very expensive for OKTA.
OKTA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. OKTA is around the same levels.
The Price/Forward Earnings ratio is 22.89, which indicates a rather expensive current valuation of OKTA.
The rest of the industry has a similar Price/Forward Earnings ratio as OKTA.
When comparing the Price/Forward Earnings ratio of OKTA to the average of the S&P500 Index (34.43), we can say OKTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 22.89 |
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 65.48% of the companies in the same industry.
OKTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKTA is cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.82 | ||
| EV/EBITDA | 62.75 |
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 13.23% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y14.55%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
No dividends for OKTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.69
-0.89 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-0.71%
Ins Owners0.21%
Ins Owner Change6.51%
Market Cap14.93B
Revenue(TTM)2.76B
Net Income(TTM)168.00M
Analysts76.47
Price Target121.62 (43.61%)
Short Float %3.8%
Short Ratio1.98
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)0.19%
PT rev (3m)-1.85%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 22.89 | ||
| P/S | 5.4 | ||
| P/FCF | 17.82 | ||
| P/OCF | 17.5 | ||
| P/B | 2.21 | ||
| P/tB | 12.42 | ||
| EV/EBITDA | 62.75 |
EPS(TTM)3.22
EY3.8%
EPS(NY)3.7
Fwd EY4.37%
FCF(TTM)4.75
FCFY5.61%
OCF(TTM)4.84
OCFY5.71%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.21
PEG (5Y)N/A
Graham Number52.68
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
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-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 | 3.28 |
F-Score7
WACC8.46%
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 Y21.69%
EPS Next 2Y14.55%
EPS Next 3Y13.23%
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 2Y10.22%
Revenue Next 3Y10.13%
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%
OKTA INC / OKTA FAQ
What is the fundamental rating for OKTA stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKTA.
Can you provide the valuation status for OKTA INC?
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.
What is the valuation of OKTA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OKTA INC (OKTA) is 26.3 and the Price/Book (PB) ratio is 2.21.
What is the expected EPS growth for OKTA INC (OKTA) stock?
The Earnings per Share (EPS) of OKTA INC (OKTA) is expected to grow by 21.69% in the next year.