NYSE:OOMA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless 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


Market Performance


7 Day Return

-8.8%

OOMA

0.01%

US Telecom

-0.6%

US Market


1 Year Return

-35.4%

OOMA

8.2%

US Telecom

0.7%

US Market

OOMA underperformed the Telecom industry which returned 8.1% over the past year.

OOMA underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

OOMAIndustryMarket
7 Day-8.8%0.01%-0.6%
30 Day-9.9%7.9%4.9%
90 Day4.6%9.5%1.7%
1 Year-35.4%-35.4%13.9%8.2%3.0%0.7%
3 Year17.8%17.8%15.7%-1.1%44.8%35.4%
5 Yearn/a36.3%5.1%62.0%44.3%

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

1 month ago | Simply Wall St

Ooma (NYSE:OOMA) Shareholders Booked A 36% Gain In The Last Three Years

Valuation

Is Ooma undervalued based on future cash flows and its price relative to the stock market?

7.28x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Ooma to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Ooma to establish if it is available at substantial discount.


Price Based on Earnings

Ooma is loss making, we can't compare its value to the US Telecom industry average.

Ooma is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ooma, we can't assess if its growth is good value.


Price Based on Value of Assets

Ooma is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

-6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ooma's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

Ooma is not considered high growth as it is expected to be loss making for the next 1-3 years.

Ooma's revenue growth is expected to exceed the United States of America market average.

Unable to compare Ooma's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Ooma's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ooma will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ooma performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ooma does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Ooma's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ooma's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ooma has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Ooma has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Ooma improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ooma's financial position?


Financial Position Analysis

Ooma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ooma's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ooma has no 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

High level of physical assets or inventory.

Ooma has no debt, it does not need to be covered by short term assets.


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.

Ooma has sufficient cash runway for 2.3 years based on current free cash flow.

Ooma has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 82.6% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Ooma's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ooma's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ooma has not reported any payouts.

Unable to verify if Ooma's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ooma has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Ooma's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Ooma's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Eric Stang (59yo)

10.7yrs

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

Eric's remuneration is higher than average for companies of similar size in United States of America.

Eric's compensation has increased whilst company is loss making.


Management Age and Tenure

9.1yrs

Average Tenure

58yo

Average Age

The average tenure for the Ooma management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

The tenure for the Ooma board of directors is about average.


Insider Trading

Ooma individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$307,65511 Sep 19
Andrew Galligan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$12.31
SellUS$265,87303 Sep 19
Eric Stang
EntityIndividual
Role
Chief Executive Officer
President
Shares21,233
Max PriceUS$12.53
SellUS$25,97621 Jun 19
James Gustke
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares2,267
Max PriceUS$11.46
SellUS$64,29321 Jun 19
Ravi Narula
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares5,611
Max PriceUS$11.46
SellUS$143,03421 Jun 19
Eric Stang
EntityIndividual
Role
Chief Executive Officer
President
Shares12,483
Max PriceUS$11.46

Ownership Breakdown


Management Team

  • Eric Stang (59yo)

    President

    • Tenure: 10.7yrs
    • Compensation: US$3.13m
  • Matt Robison (58yo)

    Director of IR & Corporate Development

    • Tenure: 0yrs
  • Ravi Narula (50yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
    • Compensation: US$1.23m
  • Toby Farrand (58yo)

    Vice President of Engineering & Operations

    • Tenure: 13.3yrs
  • Jenny Yeh (44yo)

    VP, General Counsel & Secretary

    • Tenure: 0.8yrs
  • Jim Gustke (57yo)

    Vice President of Marketing

    • Tenure: 9.1yrs
    • Compensation: US$739.02k
  • Tim Sullivan (63yo)

    Vice President of Sales

    • Tenure: 9.2yrs

Board Members

  • Andrew Galligan (63yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$172.76k
  • Pete Goettner (55yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$168.76k
  • Eric Stang (59yo)

    President

    • Tenure: 10.7yrs
    • Compensation: US$3.13m
  • Russ Mann (51yo)

    Director

    • Tenure: 10yrs
    • Compensation: US$172.76k
  • Alison Davis (58yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$178.76k
  • Bill Pearce (56yo)

    Lead Non-Management Director

    • Tenure: 2.3yrs
    • Compensation: US$185.76k
  • Susan Butenhoff (59yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$168.76k

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$224.293m
  • Shares outstanding: 21.10m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:12
End of Day Share Price2019/09/20 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.