NYSE:OOMA

Stock Analysis Report

Executive Summary

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally.


Snowflake Analysis

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OOMA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

OOMA

-0.09%

US Telecom

-2.0%

US Market


1 Year Return

-18.1%

OOMA

-9.6%

US Telecom

-15.1%

US Market

Return vs Industry: OOMA underperformed the US Telecom industry which returned -9.6% over the past year.

Return vs Market: OOMA underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

OOMAIndustryMarket
7 Day-2.2%-0.09%-2.0%
30 Day-19.6%-15.5%-19.7%
90 Day-12.8%-18.3%-23.2%
1 Year-18.1%-18.1%-5.2%-9.6%-13.4%-15.1%
3 Year3.4%3.4%-0.9%-14.4%10.9%3.7%
5 Yearn/a17.4%-7.9%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OOMA ($11.06) is trading above our estimate of fair value ($6.26)

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


Price To Earnings Ratio

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

PE vs Market: OOMA 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 OOMA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OOMA is overvalued based on its PB Ratio (8.4x) compared to the US Telecom industry average (1x).


Next Steps

Future Growth

How is Ooma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: OOMA's revenue (10.3% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: OOMA's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OOMA's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Ooma performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OOMA is currently unprofitable.

Growing Profit Margin: OOMA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OOMA is unprofitable, and losses have increased over the past 5 years at a rate of -9.2% per year.

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

Earnings vs Industry: OOMA is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (4.8%).


Return on Equity

High ROE: OOMA has a negative Return on Equity (-66.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ooma's financial position?


Financial Position Analysis

Short Term Liabilities: OOMA's short term assets ($48.0M) exceed its short term liabilities ($46.9M).

Long Term Liabilities: OOMA's short term assets ($48.0M) exceed its long term liabilities ($5.2M).


Debt to Equity History and Analysis

Debt Level: OOMA is debt free.

Reducing Debt: OOMA currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: OOMA has a high level of physical assets or inventory.

Debt Coverage by Assets: OOMA's debt is not covered by short term assets (assets are -29.5x debt).


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: OOMA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OOMA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Ooma's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if OOMA'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 OOMA'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?

9.7yrs

Average management tenure


CEO

Eric Stang (59yo)

11.25s

Tenure

US$3,126,935

Compensation

Mr. Eric B. Stang has been the Chief Executive Officer and President of Ooma, Inc. since January 2009. Mr. Stang is responsible for the overall business activities including product strategy, brand and par ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD3.13M) is above average for companies of similar size in the US market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Stang
President11.25yrsUS$3.13m4.55% $10.9m
Ravi Narula
CFO & Treasurer5.33yrsUS$1.23m0.60% $1.4m
James Gustke
Vice President of Marketing9.67yrsUS$739.02k0.36% $860.5k
Tobin Farrand
Vice President of Engineering & Operations13.83yrsno datano data
Matthew Robison
Director of IR & Corporate Developmentno datano datano data
Jenny Yeh
VP, General Counsel & Secretary1.33yrsno data0.016% $39.2k
Timothy Sullivan
Vice President of Sales9.75yrsno datano data

9.7yrs

Average Tenure

58yo

Average Age

Experienced Management: OOMA's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Stang
President11.25yrsUS$3.13m4.55% $10.9m
Andrew Galligan
Independent Director5.33yrsUS$172.76k0.70% $1.7m
Peter Goettner
Independent Director7.08yrsUS$168.76k0.33% $800.0k
Russell Mann
Independent Director10.58yrsUS$172.76k0.22% $525.8k
Alison Davis
Independent Director5.75yrsUS$178.76k0.17% $402.8k
William Pearce
Lead Non-Management Director2.83yrsUS$185.76k0.35% $849.1k
Susan Butenhoff
Independent Director3.75yrsUS$168.76k0.18% $427.1k

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: OOMA's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OOMA 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 6.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ooma, Inc.
  • Ticker: OOMA
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$239.971m
  • Shares outstanding: 21.70m
  • Website: https://www.ooma.com

Number of Employees


Location

  • Ooma, Inc.
  • 525 Almanor Avenue
  • Suite 200
  • Sunnyvale
  • California
  • 94085
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OOMANYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2015
6OODB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company’s smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company’s products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home’s Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app. The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:37
End of Day Share Price2020/04/03 00:00
Earnings2020/01/31
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.