Market Cap
US$39.5b
Last Updated
2021/07/25 23:24 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
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate 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 +/- 6% a week.
Volatility Over Time: OKTA's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
9.4%
OKTA
3.2%
US IT
2.0%
US Market
1 Year Return
25.4%
OKTA
38.2%
US IT
39.1%
US Market
Return vs Industry: OKTA underperformed the US IT industry which returned 38.2% over the past year.
Return vs Market: OKTA underperformed the US Market which returned 39.1% over the past year.
Shareholder returns
| OKTA | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.4% | 3.2% | 2.0% |
| 30 Day | 4.8% | 4.2% | 1.6% |
| 90 Day | -9.6% | 6.5% | 3.5% |
| 1 Year | 25.4%25.4% | 39.3%38.2% | 41.3%39.1% |
| 3 Year | 368.0%368.0% | 103.9%97.2% | 64.0%53.8% |
| 5 Year | n/a | 233.8%210.4% | 123.9%99.0% |
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
6 days ago | Simply Wall St
Is Okta (NASDAQ:OKTA) Using Debt Sensibly?1 month ago | Simply Wall St
The Acquisition of Auth0 Lifted Revenue Forecasts for Okta Inc., (NASDAQGS:OKTA)1 month ago | Simply Wall St
Most Shareholders Will Probably Agree With Okta, Inc.'s (NASDAQ:OKTA) CEO CompensationValuation
Is Okta undervalued compared to its fair value and its price relative to the market?
50.08x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: OKTA ($257.91) is trading above our estimate of fair value ($52.57)
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 (50.1x) compared to the US IT industry average (5x).
Future Growth
How is Okta forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
19.9%
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 (26.9% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: OKTA's revenue (26.9% 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?
-30.1%
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 30.1% 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 (16.7%).
Return on Equity
High ROE: OKTA has a negative Return on Equity (-46.56%), as it is currently unprofitable.
Financial Health
How is Okta's financial position?
Financial Position Analysis
Short Term Liabilities: OKTA's short term assets ($3.0B) exceed its short term liabilities ($800.5M).
Long Term Liabilities: OKTA's short term assets ($3.0B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: OKTA's debt to equity ratio (259.5%) is considered high.
Reducing Debt: OKTA's debt to equity ratio has increased from 0% to 259.5% 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 77.6% 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?
2.6yrs
Average management tenure
CEO
Todd McKinnon (49 yo)
12.5yrs
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 ($USD11.26M).
Compensation vs Earnings: Todd's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: OKTA's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: OKTA's board of directors are not considered experienced ( 2.6 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: OKTA insiders have only sold shares 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 22.8%.
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$39.455b
- Shares outstanding: 152.98m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/25 23:24 |
| End of Day Share Price | 2021/07/23 00:00 |
| Earnings | 2021/04/30 |
| Annual Earnings | 2021/01/31 |
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.