OOMA INC (OOMA) Stock Fundamental Analysis
NYSE:OOMA - New York Stock Exchange, Inc. - US6834161019 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OOMA. OOMA was compared to 282 industry peers in the Software industry. While OOMA seems to be doing ok healthwise, there are quite some concerns on its profitability. OOMA is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
OOMA had positive earnings in the past year.
OOMA had a positive operating cash flow in the past year.
OOMA had negative earnings in each of the past 5 years.
In the past 5 years OOMA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.63%, OOMA is in line with its industry, outperforming 50.35% of the companies in the same industry.
The Return On Equity of OOMA (-8.09%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -8.09% | ||
| ROIC | N/A |
ROA(3y)-2.66%
ROA(5y)-2.46%
ROE(3y)-5.01%
ROE(5y)-4.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 60.74%, OOMA perfoms like the industry average, outperforming 40.78% of the companies in the same industry.
OOMA's Gross Margin has been stable in the last couple of years.
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 | 60.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.45%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
OOMA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, OOMA has more shares outstanding
OOMA has more shares outstanding than it did 5 years ago.
OOMA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.54 indicates that OOMA is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.54, OOMA is doing good in the industry, outperforming 61.35% of the companies in the same industry.
OOMA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.54 |
ROIC/WACCN/A
WACC10.82%
2.3 Liquidity
A Current Ratio of 1.09 indicates that OOMA should not have too much problems paying its short term obligations.
The Current ratio of OOMA (1.09) is worse than 70.57% of its industry peers.
OOMA has a Quick Ratio of 1.09. 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's Quick ratio of 0.83 is on the low side compared to the rest of the industry. OOMA is outperformed by 79.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
OOMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.36%, which is quite impressive.
Measured over the past years, OOMA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.25% on average per year.
Looking at the last year, OOMA shows a quite strong growth in Revenue. The Revenue has grown by 8.50% in the last year.
Measured over the past years, OOMA shows a quite strong growth in Revenue. The Revenue has been growing by 11.12% on average per year.
EPS 1Y (TTM)30.36%
EPS 3Y10.25%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)8.5%
Revenue growth 3Y10.13%
Revenue growth 5Y11.12%
Sales Q2Q%4.05%
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 27.11% on average per year.
Based on estimates for the next years, OOMA will show a small growth in Revenue. The Revenue will grow by 6.51% on average per year.
EPS Next Y22.5%
EPS Next 2Y17.58%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue Next Year4.45%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y6.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.55, OOMA is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 84.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, OOMA is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.04, which indicates a correct valuation of OOMA.
88.65% of the companies in the same industry are more expensive than OOMA, based on the Price/Forward Earnings ratio.
OOMA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OOMA is valued a bit cheaper than the industry average as 63.83% of the companies are valued more expensively.
OOMA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OOMA is cheaper than 86.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 53.04 |
4.3 Compensation for Growth
OOMA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as OOMA's earnings are expected to grow with 22.92% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y17.58%
EPS Next 3Y22.92%
5. Dividend
5.1 Amount
No dividends for OOMA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.08
-0.49 (-3.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.4%
Inst Owner Change0%
Ins Owners6.55%
Ins Owner Change15.46%
Market Cap332.92M
Analysts81.54
Price Target18.26 (51.16%)
Short Float %2.3%
Short Ratio4.06
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)18.51%
Min EPS beat(2)7.43%
Max EPS beat(2)29.6%
EPS beat(4)4
Avg EPS beat(4)16.42%
Min EPS beat(4)7.43%
Max EPS beat(4)29.6%
EPS beat(8)6
Avg EPS beat(8)10.49%
EPS beat(12)10
Avg EPS beat(12)12.69%
EPS beat(16)14
Avg EPS beat(16)18.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.31%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)-2.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)3.56%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.3 | ||
| P/FCF | 16.51 | ||
| P/OCF | 12.51 | ||
| P/B | 3.9 | ||
| P/tB | 8.32 | ||
| EV/EBITDA | 53.04 |
EPS(TTM)0.73
EY6.04%
EPS(NY)0.93
Fwd EY7.67%
FCF(TTM)0.73
FCFY6.06%
OCF(TTM)0.97
OCFY7.99%
SpS9.32
BVpS3.09
TBVpS1.45
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -8.09% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.74% | ||
| FCFM | 7.85% |
ROA(3y)-2.66%
ROA(5y)-2.46%
ROE(3y)-5.01%
ROE(5y)-4.92%
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 3Y-0.45%
GM growth 5Y0.08%
F-Score5
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 49.08% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 429.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.54 |
F-Score5
WACC10.82%
ROIC/WACCN/A
Cap/Depr(3y)63.69%
Cap/Depr(5y)72.34%
Cap/Sales(3y)2.51%
Cap/Sales(5y)2.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.36%
EPS 3Y10.25%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y22.5%
EPS Next 2Y17.58%
EPS Next 3Y22.92%
EPS Next 5Y27.11%
Revenue 1Y (TTM)8.5%
Revenue growth 3Y10.13%
Revenue growth 5Y11.12%
Sales Q2Q%4.05%
Revenue Next Year4.45%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y6.51%
EBIT growth 1Y-73.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.96%
EBIT Next 3Y32.93%
EBIT Next 5Y30.41%
FCF growth 1Y229.72%
FCF growth 3Y101.61%
FCF growth 5YN/A
OCF growth 1Y116.79%
OCF growth 3Y58.67%
OCF growth 5YN/A