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OKTA

Okta NasdaqGS:OKTA Stock Report

Last Price

US$84.22

Market Cap

US$13.3b

7D

-13.8%

1Y

-64.7%

Updated

22 May, 2022

Data

Company Financials +
OKTA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

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.

Okta Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Okta
Historical stock prices
Current Share PriceUS$84.22
52 Week HighUS$276.30
52 Week LowUS$77.16
Beta1.14
1 Month Change-38.22%
3 Month Change-48.86%
1 Year Change-64.66%
3 Year Change-23.18%
5 Year Change224.05%
Change since IPO258.23%

Recent News & Updates

Apr 29

Okta: Still Expensive, But Approaching A Buy Point

Shares of Okta have slid more than 40% this year, driven primarily by the valuation reset in growth stocks. Organic growth has also slowed somewhat while Okta's profitability metrics are also slackening. A recent security breach has also shaken investors' confidence in the stock and may also impact sales momentum. Trading at ~11x forward revenue, Okta is cheaper than it's ever been but is not yet at comfortable buying levels.

Apr 13
Health Check: How Prudently Does Okta (NASDAQ:OKTA) Use Debt?

Health Check: How Prudently Does Okta (NASDAQ:OKTA) Use Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

OKTAUS ITUS Market
7D-13.8%-1.2%-2.7%
1Y-64.7%-28.1%-12.9%

Return vs Industry: OKTA underperformed the US IT industry which returned -28.1% over the past year.

Return vs Market: OKTA underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is OKTA's price volatile compared to industry and market?
OKTA volatility
OKTA Average Weekly Movement12.2%
IT Industry Average Movement10.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
20095,030Todd McKinnonhttps://www.okta.com

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

How do Okta's earnings and revenue compare to its market cap?
OKTA fundamental statistics
Market CapUS$13.28b
Earnings (TTM)-US$848.41m
Revenue (TTM)US$1.30b

10.2x

P/S Ratio

-15.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OKTA income statement (TTM)
RevenueUS$1.30b
Cost of RevenueUS$394.52m
Gross ProfitUS$905.69m
Other ExpensesUS$1.75b
Earnings-US$848.41m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Jun 02, 2022

Earnings per share (EPS)-5.38
Gross Margin69.66%
Net Profit Margin-65.25%
Debt/Equity Ratio30.9%

How did OKTA perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OKTA ($84.22) is trading below our estimate of fair value ($465.6)

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 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 good value based on its PB Ratio (2.2x) compared to the US IT industry average (3.1x).


Future Growth

How is Okta forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.6%

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%).


Past Performance

How has Okta performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-45.2%

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 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.


Financial Health

How is Okta's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • 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.


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 65.6% per year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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

Management

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

1.7yrs

Average management tenure


CEO

Todd McKinnon (49 yo)

14.33yrs

Tenure

US$31,820,477

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 ($USD31.82M) is above average for companies of similar size in the US market ($USD13.34M).

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 ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: OKTA's board of directors are considered experienced (6 years average tenure).


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 3.1%.


Top Shareholders

Company Information

Okta, Inc.'s 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
  • Implied Market Cap: US$13.284b
  • Shares outstanding: 157.72m
  • Website: https://www.okta.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/01/31
Annual Earnings2022/01/31


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.