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Market Cap

US$39.9b

Last Updated

2021/09/18 00:52 UTC

Data Sources

Company Financials +

Executive Summary

Okta, Inc. provides identity management platform for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

How has Okta's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OKTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OKTA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

OKTA

-0.9%

US IT

-0.6%

US Market


1 Year Return

30.6%

OKTA

25.7%

US IT

33.8%

US Market

Return vs Industry: OKTA exceeded the US IT industry which returned 26.4% over the past year.

Return vs Market: OKTA underperformed the US Market which returned 33.6% over the past year.


Shareholder returns

OKTAIndustryMarket
7 Day1.6%-0.9%-0.6%
30 Day12.8%0.6%1.6%
90 Day7.9%1.3%4.6%
1 Year30.6%30.6%26.8%25.7%35.8%33.8%
3 Year276.9%276.9%77.7%72.1%60.0%50.1%
5 Yearn/a202.6%181.8%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Okta's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Okta undervalued compared to its fair value and its price relative to the market?

6.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OKTA ($258.15) is trading above our estimate of fair value ($253.87)

Significantly Below Fair Value: OKTA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OKTA is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: OKTA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OKTA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OKTA is overvalued based on its PB Ratio (6.6x) compared to the US IT industry average (5.4x).


Future Growth

How is Okta forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKTA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OKTA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OKTA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OKTA's revenue (27.1% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: OKTA's revenue (27.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OKTA is forecast to be unprofitable in 3 years.


Past Performance

How has Okta performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OKTA is currently unprofitable.

Growing Profit Margin: OKTA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OKTA is unprofitable, and losses have increased over the past 5 years at a rate of 35.2% per year.

Accelerating Growth: Unable to compare OKTA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OKTA is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.5%).


Return on Equity

High ROE: OKTA has a negative Return on Equity (-8.85%), as it is currently unprofitable.


Financial Health

How is Okta's financial position?


Financial Position Analysis

Short Term Liabilities: OKTA's short term assets ($2.9B) exceed its short term liabilities ($912.5M).

Long Term Liabilities: OKTA's short term assets ($2.9B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: OKTA's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: OKTA's debt to equity ratio has increased from 0% to 29.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OKTA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OKTA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 74.2% per year.


Dividend

What is Okta current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OKTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OKTA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OKTA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OKTA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OKTA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Todd McKinnon (49 yo)

12.67yrs

Tenure

US$12,131,012

Compensation

Mr. Todd McKinnon serves as Chief Executive Officer of Okta at Auth0, Inc. since 2021. He co-founded Okta, Inc. in 2008 and has been its Chief Executive Officer since January 2009. From October 2003 to Feb...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD12.13M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Todd's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OKTA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: OKTA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.


Top Shareholders

Company Information

Okta, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Okta, Inc.
  • Ticker: OKTA
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$39.926b
  • Shares outstanding: 154.66m
  • Website: https://www.okta.com

Number of Employees


Location

  • Okta, Inc.
  • 100 First Street
  • Suite 600
  • San Francisco
  • California
  • 94105
  • United States

Listings


Biography

Okta, Inc. provides identity management platform for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:52
End of Day Share Price2021/09/17 00:00
Earnings2021/07/31
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.