Taking everything into account, OOMA scores 5 out of 10 in our fundamental rating. OOMA was compared to 278 industry peers in the Software industry. OOMA has an average financial health and profitability rating. OOMA is growing strongly while it also seems undervalued. This is an interesting combination

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year OOMA was profitable.
OOMA had a positive operating cash flow in the past year.
In the past 5 years OOMA always reported negative net income.
OOMA 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 1.47%, OOMA is in the better half of the industry, outperforming 60.43% of the companies in the same industry.
OOMA has a Return On Equity of 2.50%. This is in the better half of the industry: OOMA outperforms 62.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.43%, OOMA is in the better half of the industry, outperforming 64.39% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.47%
ROE	2.5%
ROIC	1.43%

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

Looking at the Profit Margin, with a value of 0.85%, OOMA is in line with its industry, outperforming 58.27% of the companies in the same industry.
OOMA's Operating Margin of 0.69% is in line compared to the rest of the industry. OOMA outperforms 59.35% of its industry peers.
The Gross Margin of OOMA (61.00%) is worse than 61.87% of its industry peers.
In the last couple of years the Gross Margin of OOMA has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	0.69%
PM (TTM)	0.85%
GM	61%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

OOMA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
OOMA has more shares outstanding than it did 1 year ago.
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 3.71 indicates that OOMA is not in any danger for bankruptcy at the moment.
OOMA's Altman-Z score of 3.71 is fine compared to the rest of the industry. OOMA outperforms 68.35% of its industry peers.
There is no outstanding debt for OOMA. 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	0
Altman-Z	3.71

ROIC/WACC0.13

WACC11.09%

2.3 Liquidity

A Current Ratio of 1.24 indicates that OOMA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, OOMA is doing worse than 64.03% of the companies in the same industry.
OOMA has a Quick Ratio of 1.24. This is a bad value and indicates that OOMA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, OOMA is doing worse than 75.54% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.24
Quick Ratio	0.95

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

OOMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.24%, which is quite impressive.
OOMA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.25% yearly.
The Revenue has been growing slightly by 4.22% in the past 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)54.24%

EPS 3Y10.25%

EPS 5YN/A

EPS Q2Q%58.82%

Revenue 1Y (TTM)4.22%

Revenue growth 3Y10.13%

Revenue growth 5Y11.12%

Sales Q2Q%3.84%

3.2 Future

The Earnings Per Share is expected to grow by 26.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.54% on average over the next years. This is quite good.

EPS Next Y53.63%

EPS Next 2Y35.54%

EPS Next 3Y26.69%

EPS Next 5Y26.05%

Revenue Next Year5.85%

Revenue Next 2Y12.33%

Revenue Next 3Y9.38%

Revenue Next 5Y9.54%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.13 indicates a correct valuation of OOMA.
Based on the Price/Earnings ratio, OOMA is valued cheaply inside the industry as 83.45% of the companies are valued more expensively.
OOMA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of OOMA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 88.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, OOMA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	13.13
Fwd PE	9.71

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OOMA indicates a somewhat cheap valuation: OOMA is cheaper than 70.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OOMA indicates a rather cheap valuation: OOMA is cheaper than 80.22% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.46
EV/EBITDA	26.04

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OOMA's earnings are expected to grow with 26.69% in the coming years. This may justify a more expensive valuation.