OOMA INC (OOMA) Stock Fundamental Analysis
NYSE:OOMA - New York Stock Exchange, Inc. - US6834161019 - Common Stock - Currency: USD
OOMA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. While OOMA seems to be doing ok healthwise, there are quite some concerns on its profitability. OOMA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OOMA was profitable.
OOMA had a positive operating cash flow in the past year.
OOMA had negative earnings in each of the past 5 years.
OOMA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OOMA has a Return On Assets (-6.49%) which is comparable to the rest of the industry.
With a Return On Equity value of -11.62%, OOMA perfoms like the industry average, outperforming 47.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.49% | ||
| ROE | -11.62% | ||
| ROIC | N/A |
ROA(3y)-1.67%
ROA(5y)-6.2%
ROE(3y)-3.49%
ROE(5y)-16.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of OOMA (60.70%) is worse than 60.51% of its industry peers.
In the last couple of years the Gross Margin of OOMA has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for OOMA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.08%
GM growth 5Y0.99%
2. Health
2.1 Basic Checks
OOMA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for OOMA has been increased compared to 1 year ago.
The number of shares outstanding for OOMA has been increased compared to 5 years ago.
Compared to 1 year ago, OOMA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.75 indicates that OOMA is not in any danger for bankruptcy at the moment.
OOMA's Altman-Z score of 3.75 is in line compared to the rest of the industry. OOMA outperforms 57.61% of its industry peers.
OOMA has a debt to FCF ratio of 0.16. This is a very positive value and a sign of high solvency as it would only need 0.16 years to pay back of all of its debts.
OOMA's Debt to FCF ratio of 0.16 is fine compared to the rest of the industry. OOMA outperforms 78.26% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that OOMA is not too dependend on debt financing.
The Debt to Equity ratio of OOMA (0.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 3.75 |
ROIC/WACCN/A
WACC13.94%
2.3 Liquidity
OOMA has a Current Ratio of 1.08. This is a normal value and indicates that OOMA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, OOMA is doing worse than 72.83% of the companies in the same industry.
OOMA has a Quick Ratio of 1.08. This is a bad value and indicates that OOMA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.82, OOMA is not doing good in the industry: 82.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
OOMA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.28%.
The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
Looking at the last year, OOMA shows a quite strong growth in Revenue. The Revenue has grown by 9.45% in the last year.
The Revenue has been growing by 12.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.28%
EPS 3Y5.78%
EPS 5YN/A
EPS Q2Q%13.33%
Revenue 1Y (TTM)9.45%
Revenue growth 3Y11.91%
Revenue growth 5Y12.88%
Sales Q2Q%8.81%
3.2 Future
Based on estimates for the next years, OOMA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.02% on average per year.
The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
EPS Next Y7.75%
EPS Next 2Y10.59%
EPS Next 3Y14.19%
EPS Next 5Y27.02%
Revenue Next Year8.43%
Revenue Next 2Y7.25%
Revenue Next 3Y7.47%
Revenue Next 5Y8.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 24.42 indicates a rather expensive valuation of OOMA.
Based on the Price/Earnings ratio, OOMA is valued a bit cheaper than the industry average as 75.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.62, OOMA is valued at the same level.
OOMA is valuated rather expensively with a Price/Forward Earnings ratio of 20.31.
80.80% of the companies in the same industry are more expensive than OOMA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OOMA to the average of the S&P500 Index (22.70), we can say OOMA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OOMA.
Based on the Price/Free Cash Flow ratio, OOMA is valued cheaply inside the industry as 83.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.32 | ||
| EV/EBITDA | 348.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OOMA does not grow enough to justify the current Price/Earnings ratio.
OOMA's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y10.59%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
No dividends for OOMA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.41
-0.52 (-3.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.77%
Inst Owner Change-96.9%
Ins Owners7.91%
Ins Owner Change-2.65%
Market Cap389.07M
Analysts81.54
Price Target18.26 (26.72%)
Short Float %1.97%
Short Ratio3.62
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)8.01%
Min EPS beat(2)7.43%
Max EPS beat(2)8.59%
EPS beat(4)4
Avg EPS beat(4)10.17%
Min EPS beat(4)4.61%
Max EPS beat(4)20.05%
EPS beat(8)6
Avg EPS beat(8)7.87%
EPS beat(12)10
Avg EPS beat(12)12.65%
EPS beat(16)14
Avg EPS beat(16)18.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)2
Avg Revenue beat(12)-1.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)20.95%
EPS NQ rev (1m)13.12%
EPS NQ rev (3m)9.18%
EPS NY rev (1m)0%
EPS NY rev (3m)5.06%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.31 | ||
| P/S | 1.54 | ||
| P/FCF | 21.32 | ||
| P/OCF | 16.03 | ||
| P/B | 4.66 | ||
| P/tB | 10.56 | ||
| EV/EBITDA | 348.46 |
EPS(TTM)0.59
EY4.09%
EPS(NY)0.71
Fwd EY4.92%
FCF(TTM)0.68
FCFY4.69%
OCF(TTM)0.9
OCFY6.24%
SpS9.39
BVpS3.09
TBVpS1.36
PEG (NY)3.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.49% | ||
| ROE | -11.62% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.7% | ||
| FCFM | 7.2% |
ROA(3y)-1.67%
ROA(5y)-6.2%
ROE(3y)-3.49%
ROE(5y)-16.54%
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 3Y0.08%
GM growth 5Y0.99%
F-Score5
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.16 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 2255.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 3.75 |
F-Score5
WACC13.94%
ROIC/WACCN/A
Cap/Depr(3y)85.91%
Cap/Depr(5y)84.93%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.28%
EPS 3Y5.78%
EPS 5YN/A
EPS Q2Q%13.33%
EPS Next Y7.75%
EPS Next 2Y10.59%
EPS Next 3Y14.19%
EPS Next 5Y27.02%
Revenue 1Y (TTM)9.45%
Revenue growth 3Y11.91%
Revenue growth 5Y12.88%
Sales Q2Q%8.81%
Revenue Next Year8.43%
Revenue Next 2Y7.25%
Revenue Next 3Y7.47%
Revenue Next 5Y8.64%
EBIT growth 1Y-345.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year47.12%
EBIT Next 3Y26.42%
EBIT Next 5Y31.18%
FCF growth 1Y729.32%
FCF growth 3Y71.6%
FCF growth 5YN/A
OCF growth 1Y234.33%
OCF growth 3Y41.09%
OCF growth 5YN/A