OKTA INC (OKTA) Stock Fundamental Analysis
USA - NASDAQ:OKTA - US6792951054 - Common Stock
83.94 USD
+0.18 (+0.21%)
84.01 USD
+0.07 (+0.08%)
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.
OKTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.76%, OKTA is in line with its industry, outperforming 50.00% of the companies in the same industry.
OKTA's Return On Equity of 2.49% is in line compared to the rest of the industry. OKTA outperforms 53.57% of its industry peers.
OKTA's Return On Invested Capital of 0.73% is in line compared to the rest of the industry. OKTA outperforms 44.05% 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 66.67% of its industry peers.
OKTA has a Operating Margin (3.00%) which is comparable to the rest of the industry.
OKTA has a better Gross Margin (76.91%) than 96.43% 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.
Compared to 1 year ago, OKTA has more shares outstanding
OKTA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OKTA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.22 indicates that OKTA is not in any danger for bankruptcy at the moment.
OKTA has a Altman-Z score (3.22) 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 | 3.22 |
ROIC/WACC0.09
WACC8.27%
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 has a worse Current ratio (1.35) than 63.10% 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 has a Quick ratio of 1.35. This is in the lower half of the industry: OKTA underperforms 63.10% 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
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 26.07, which means the current valuation is very expensive for OKTA.
The rest of the industry has a similar Price/Earnings ratio as OKTA.
The average S&P500 Price/Earnings ratio is at 25.89. OKTA is around the same levels.
OKTA is valuated rather expensively with a Price/Forward Earnings ratio of 22.68.
OKTA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, OKTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKTA is valued a bit more expensive than 63.10% 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 65.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.66 | ||
| EV/EBITDA | 61.11 |
4.3 Compensation for Growth
The 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 13.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y14.55%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
OKTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
83.94
+0.18 (+0.21%)
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 Cap14.80B
Revenue(TTM)2.76B
Net Income(TTM)168.00M
Analysts76.47
Price Target121.62 (44.89%)
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 | 26.07 | ||
| Fwd PE | 22.68 | ||
| P/S | 5.36 | ||
| P/FCF | 17.66 | ||
| P/OCF | 17.35 | ||
| P/B | 2.19 | ||
| P/tB | 12.31 | ||
| EV/EBITDA | 61.11 |
EPS(TTM)3.22
EY3.84%
EPS(NY)3.7
Fwd EY4.41%
FCF(TTM)4.75
FCFY5.66%
OCF(TTM)4.84
OCFY5.76%
SpS15.67
BVpS38.31
TBVpS6.82
PEG (NY)1.2
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 | 3.22 |
F-Score7
WACC8.27%
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 26.07 and the Price/Book (PB) ratio is 2.19.
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.