OOMA INC (OOMA)
US6834161019 - Common Stock
Taking everything into account, OOMA scores 4 out of 10 in our fundamental rating. OOMA was compared to 284 industry peers in the Software industry. The financial health of OOMA is average, but there are quite some concerns on its profitability. OOMA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
OOMA had positive earnings in the past year.
In the past year OOMA had a positive cash flow from operations.
In the past 5 years OOMA always reported negative net income.
OOMA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OOMA's Return On Assets of -6.49% is in line compared to the rest of the industry. OOMA outperforms 45.88% of its industry peers.
OOMA has a Return On Equity (-11.62%) which is comparable to the rest of the 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
OOMA has a Gross Margin of 60.70%. This is in the lower half of the industry: OOMA underperforms 60.22% of its industry peers.
In the last couple of years the Gross Margin of OOMA has remained more or less at the same level.
OOMA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
Compared to 5 years ago, OOMA has more shares outstanding
Compared to 1 year ago, OOMA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.55 indicates that OOMA is not in any danger for bankruptcy at the moment.
OOMA has a Altman-Z score (3.55) which is in line with its industry peers.
The Debt to FCF ratio of OOMA is 0.16, which is an excellent value as it means it would take OOMA, only 0.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.16, OOMA is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
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 | 3.55 |
ROIC/WACCN/A
WACC11.38%
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.
OOMA has a Current ratio of 1.08. This is in the lower half of the industry: OOMA underperforms 74.91% of its industry peers.
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.
OOMA has a Quick ratio of 0.82. This is amonst the worse of the industry: OOMA underperforms 82.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for OOMA have decreased by -3.28% in the last year.
The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
The Revenue has grown by 9.45% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 27.02% on average over the next years. This is a very strong growth
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 3Y11.23%
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
Based on the Price/Earnings ratio of 23.88, the valuation of OOMA can be described as rather expensive.
OOMA's Price/Earnings ratio is a bit cheaper when compared to the industry. OOMA is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. OOMA is around the same levels.
A Price/Forward Earnings ratio of 19.86 indicates a rather expensive valuation of OOMA.
OOMA's Price/Forward Earnings ratio is rather cheap when compared to the industry. OOMA is cheaper than 81.36% of the companies in the same industry.
OOMA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
OOMA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, OOMA is valued cheaply inside the industry as 86.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.85 | ||
| EV/EBITDA | 327.88 |
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.
PEG (NY)3.08
PEG (5Y)N/A
EPS Next 2Y10.59%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
No dividends for OOMA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OOMA INC
NYSE:OOMA (1/15/2025, 3:28:55 PM)
14.09
+0.5 (+3.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change0%
Ins Owners7.96%
Ins Owner Change-3.14%
Market Cap380.43M
Analysts81.54
Price Target18.26 (29.6%)
Short Float %2.07%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-0.21%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
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)19.33%
PT rev (3m)20.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)5.06%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 19.86 | ||
| P/S | 1.5 | ||
| P/FCF | 20.85 | ||
| P/OCF | 15.67 | ||
| P/B | 4.56 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 327.88 |
EPS(TTM)0.59
EY4.19%
EPS(NY)0.71
Fwd EY5.03%
FCF(TTM)0.68
FCFY4.8%
OCF(TTM)0.9
OCFY6.38%
SpS9.39
BVpS3.09
TBVpS1.36
PEG (NY)3.08
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 | 3.55 |
F-Score5
WACC11.38%
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 3Y11.23%
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 3Y23.61%
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