OKTA Stock Overview
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$78.86|
|52 Week High||US$276.30|
|52 Week Low||US$77.01|
|1 Month Change||-42.16%|
|3 Month Change||-50.56%|
|1 Year Change||-67.70%|
|3 Year Change||-27.39%|
|5 Year Change||203.42%|
|Change since IPO||235.43%|
Recent News & Updates
Okta: Better Sell Before Its Upcoming Earnings Release
Okta is scheduled to report its FQ1 earnings results on June 2. We urge investors to get out before its earnings release. The risk/reward balance is biased to the downside. We believe that Okta's unprofitability will continue to impede any potential for re-rating in the near term. Therefore, investors should use any potential rally to cut exposure. Our price action analysis suggests a further downside of up to 50% is possible. Therefore, don't hang on to OKTA stock any longer. We revise our rating from Hold to Sell.
|OKTA||US IT||US Market|
Return vs Industry: OKTA underperformed the US IT industry which returned -27.5% over the past year.
Return vs Market: OKTA underperformed the US Market which returned -12.3% over the past year.
|OKTA Average Weekly Movement||11.9%|
|IT Industry Average Movement||10.0%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: OKTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: OKTA's weekly volatility (12%) has been stable over the past year.
About the Company
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products and services, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications; and Advanced Server Access to secure cloud infrastructure. It also provides Auth0 products, including Universal Login that allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; private Cloud that allows customers to run a dedicated cloud instance of Auth0; and Organizations that enables customers to independent configurations, login experiences, and security options.
Okta Fundamentals Summary
|OKTA fundamental statistics|
Is OKTA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OKTA income statement (TTM)|
|Cost of Revenue||US$394.52m|
Last Reported Earnings
Jan 31, 2022
Next Earnings Date
Jun 02, 2022
|Earnings per share (EPS)||-5.38|
|Net Profit Margin||-65.25%|
How did OKTA perform over the long term?See historical performance and comparison
Is Okta undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OKTA ($78.86) is trading below our estimate of fair value ($462.99)
Significantly Below Fair Value: OKTA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OKTA is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US IT industry average.
PE vs Market: OKTA is unprofitable, so we can't compare its Price-To-Earnings 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 good value based on its Price-To-Book Ratio (2.1x) compared to the US IT industry average (3.1x).
How is Okta forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (26.8% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: OKTA's revenue (26.8% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OKTA's Return on Equity is forecast to be low in 3 years time (1.4%).
How has Okta performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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 45.2% 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 (21.4%).
Return on Equity
High ROE: OKTA has a negative Return on Equity (-14.33%), as it is currently unprofitable.
How is Okta's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: OKTA's short term assets ($3.0B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: OKTA's short term assets ($3.0B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: OKTA has more cash than its total debt.
Reducing Debt: Insufficient data to determine if OKTA's debt to equity ratio has reduced over the past 5 years.
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 65.6% per year.
What is Okta current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as OKTA has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Todd McKinnon (49 yo)
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 ($USD31.82M) is above average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Todd's compensation has increased whilst the company is unprofitable.
Experienced Management: OKTA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: OKTA's board of directors are considered experienced (6 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.
Okta, Inc.'s employee growth, exchange listings and data sources
- Name: Okta, Inc.
- Ticker: OKTA
- Exchange: NasdaqGS
- Founded: 2009
- Industry: Internet Services and Infrastructure
- Sector: Software
- Implied Market Cap: US$12.438b
- Shares outstanding: 157.72m
- Website: https://www.okta.com
Number of Employees
- Okta, Inc.
- 100 First Street
- Suite 600
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 00:00|
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.