OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
80.655 USD
-0.37 (-0.46%)
We assign a fundamental rating of 5 out of 10 to OKTA. OKTA was compared to 85 industry peers in the IT Services industry. OKTA has only an average score on both its financial health and profitability. OKTA is valied quite expensively at the moment, while it does show a decent growth rate.
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 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 1.76% is in line compared to the rest of the industry. OKTA outperforms 50.59% of its industry peers.
The Return On Equity of OKTA (2.49%) is comparable to the rest of the industry.
The Return On Invested Capital of OKTA (0.73%) is comparable to the rest of the 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 67.06% 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 45.88% of its industry peers.
With an excellent Gross Margin value of 76.91%, OKTA belongs to the best of the industry, outperforming 96.47% 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 | 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
OKTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OKTA has been increased compared to 1 year ago.
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 3.11. This indicates that OKTA is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.11, OKTA perfoms like the industry average, outperforming 56.47% 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 | 3.11 |
ROIC/WACC0.09
WACC8.23%
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.
The Current ratio of OKTA (1.35) is worse than 62.35% of its industry peers.
A Quick Ratio of 1.35 indicates that OKTA should not have too much problems paying 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 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.97% over the past year.
The Revenue has grown by 12.68% in the past year. This is quite good.
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)12.68%
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 9.64% yearly.
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
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 25.05, OKTA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as OKTA.
When comparing the Price/Earnings ratio of OKTA to the average of the S&P500 Index (25.51), we can say OKTA is valued inline with the index average.
OKTA is valuated rather expensively with a Price/Forward Earnings ratio of 21.80.
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 (34.98), we can say OKTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 21.8 |
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 61.18% of the companies in the same industry.
67.06% of the companies in the same industry are more expensive than OKTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | 58.21 |
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)1.15
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 |
NASDAQ:OKTA (11/19/2025, 9:52:54 AM)
80.655
-0.37 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-2.68%
Ins Owners0.21%
Ins Owner Change6.98%
Market Cap14.22B
Revenue(TTM)2.76B
Net Income(TTM)168.00M
Analysts76.47
Price Target121.62 (50.79%)
Short Float %3.62%
Short Ratio2.73
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 | 25.05 | ||
| Fwd PE | 21.8 | ||
| P/S | 5.15 | ||
| P/FCF | 16.97 | ||
| P/OCF | 16.67 | ||
| P/B | 2.11 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 58.21 |
EPS(TTM)3.22
EY3.99%
EPS(NY)3.7
Fwd EY4.59%
FCF(TTM)4.75
FCFY5.89%
OCF(TTM)4.84
OCFY6%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.15
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 | 3.11 |
F-Score7
WACC8.23%
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 25.05 and the Price/Book (PB) ratio is 2.11.
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.