NasdaqGS:OKTA

Stock Analysis Report

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Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

OKTA

2.3%

US IT

2.9%

US Market


1 Year Return

72.7%

OKTA

18.7%

US IT

9.5%

US Market

Return vs Industry: OKTA exceeded the US IT industry which returned 18.7% over the past year.

Return vs Market: OKTA exceeded the US Market which returned 9.5% over the past year.


Shareholder returns

OKTAIndustryMarket
7 Day1.6%2.3%2.9%
30 Day31.4%9.9%5.1%
90 Day46.6%8.2%2.5%
1 Year72.7%72.7%19.8%18.7%12.0%9.5%
3 Year684.5%684.5%89.2%81.5%30.8%22.1%
5 Yearn/a128.2%107.7%57.4%39.7%

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?

59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OKTA ($195.58) is trading above our estimate of fair value ($76.8)

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 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 (59x) compared to the US IT industry average (3.4x).


Next Steps

Future Growth

How is Okta forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

-1.1%

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 (22.9% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: OKTA's revenue (22.9% 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 (7%).


Next Steps

Past Performance

How has Okta performed over the past 5 years?

-26.5%

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 -26.5% 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 (15.4%).


Return on Equity

High ROE: OKTA has a negative Return on Equity (-51.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Okta's financial position?


Financial Position Analysis

Short Term Liabilities: OKTA's short term assets ($1.6B) exceed its short term liabilities ($570.4M).

Long Term Liabilities: OKTA's short term assets ($1.6B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: OKTA's debt to equity ratio (229.5%) is considered high.

Reducing Debt: OKTA's debt to equity ratio has increased from 0.4% to 229.5% 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 56.3% per year.


Next Steps

Dividend

What is Okta's 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?

5.3yrs

Average management tenure


CEO

Todd McKinnon (47yo)

11.33yrs

Tenure

US$9,029,320

Compensation

Mr. Todd McKinnon co-founded Okta, Inc. in 2008 and has been its Chief Executive Officer since January 2009. From October 2003 to February 2009, Mr. McKinnon served in various roles at salesforce.com, inc. ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD9.03M) is about average for companies of similar size in the US market ($USD11.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd McKinnon
Co-Founder11.33yrsUS$9.03m4.27% $1.0b
Jacques Kerrest
Co-Founder1.17yrsUS$5.92m1.55% $377.4m
William Losch
Chief Financial Officer6.83yrsUS$3.95m0.41% $99.1m
Jonathan Runyan
General Counsel & Secretary5.33yrsUS$2.92m0.038% $9.3m
Charles Race
President of Worldwide Field Operations3.58yrsUS$3.58m0.012% $3.0m
Christopher Kramer
Chief Accounting Officer0.58yrno data0.0050% $1.2m
Hector Aguilar
President of Technologyno datano datano data
Dave Gennarelli
Vice President of Investor Relationsno datano datano data
Ryan Carlson
Chief Marketing Officerno datano datano data
Monty Gray
Senior Vice President of Corporate Development2.17yrsno datano data

5.3yrs

Average Tenure

47yo

Average Age

Experienced Management: OKTA's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd McKinnon
Co-Founder11.33yrsUS$9.03m4.27% $1.0b
Jacques Kerrest
Co-Founder1.17yrsUS$5.92m1.55% $377.4m
Michael Kourey
Independent Non-Employee Director4.58yrsUS$250.78k0.013% $3.1m
Benjamin Horowitz
Lead Independent Directorno dataUS$250.23k0.82% $199.7m
Shellye Archambeau
Independent Director1.42yrsUS$238.82k0.0014% $338.8k
Michael Stankey
Independent Non-Employee Director3.42yrsUS$249.23k0.013% $3.1m
L. Wilson
Independent Non-Employee Director4.58yrsUS$247.09k0.15% $36.3m
Rebecca Saeger
Independent Director1.33yrsUS$240.12k0.0012% $294.9k
Patrick Grady
Independent Non-Employee Director6yrsUS$241.23k0.084% $20.6m
Robert Dixon
Independent Director0.83yrUS$375.36kno data

3.2yrs

Average Tenure

55.5yo

Average Age

Experienced Board: OKTA's board of directors are considered experienced (3.2 years average tenure).


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 9.2%.


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$24.371b
  • Shares outstanding: 124.61m
  • Website: https://www.okta.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OKTANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2017
0OKDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2017
0KB7LSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2017
OKTA *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2017

Biography

Okta, Inc. provides identity management platforms 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 to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; and Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials. It also provides Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for cloud, mobile, and Web applications, as well as for data; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Advanced Server Access to secure cloud infrastructure; and Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications. In addition, the company offers customer support and training, and professional services. Okta, Inc. sells its products directly to customers through sales force, as well as through channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 09:19
End of Day Share Price2020/05/29 00:00
Earnings2020/04/30
Annual Earnings2020/01/31


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.