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OOMA

Ooma NYSE:OOMA Stock Report

Last Price

US$12.14

Market Cap

US$294.6m

7D

7.3%

1Y

-42.2%

Updated

26 Jun, 2022

Data

Company Financials +
OOMA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends0/6

OOMA Stock Overview

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada.

Ooma Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Ooma
Historical stock prices
Current Share PriceUS$12.14
52 Week HighUS$24.28
52 Week LowUS$10.82
Beta0.66
1 Month Change-14.99%
3 Month Change-17.70%
1 Year Change-42.19%
3 Year Change15.84%
5 Year Change51.75%
Change since IPO10.87%

Recent News & Updates

Shareholder Returns

OOMAUS TelecomUS Market
7D7.3%5.6%6.6%
1Y-42.2%-18.7%-18.4%

Return vs Industry: OOMA underperformed the US Telecom industry which returned -18.6% over the past year.

Return vs Market: OOMA underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is OOMA's price volatile compared to industry and market?
OOMA volatility
OOMA Average Weekly Movement6.0%
Telecom Industry Average Movement8.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: OOMA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OOMA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003383Eric Stanghttps://www.ooma.com

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company’s products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution. It also provides Ooma AirDial, a plain old telephone service; Ooma Telo basic that provides unlimited personal calling within the Unites States; Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis; PureVoice HD, a residential phone services; Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; and Ooma Telo 4G, which combines the Ooma Telo base station with the Ooma 4G Cellular Adapter and battery back-up.

Ooma Fundamentals Summary

How do Ooma's earnings and revenue compare to its market cap?
OOMA fundamental statistics
Market CapUS$294.60m
Earnings (TTM)-US$1.63m
Revenue (TTM)US$197.06m

1.5x

P/S Ratio

-180.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OOMA income statement (TTM)
RevenueUS$197.06m
Cost of RevenueUS$74.75m
Gross ProfitUS$122.31m
Other ExpensesUS$123.94m
Earnings-US$1.63m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.067
Gross Margin62.07%
Net Profit Margin-0.83%
Debt/Equity Ratio0%

How did OOMA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OOMA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OOMA?

Other financial metrics that can be useful for relative valuation.

OOMA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA99.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does OOMA's PS Ratio compare to its peers?

OOMA PS Ratio vs Peers
The above table shows the PS ratio for OOMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.1x

Price-To-Sales vs Peers: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does OOMA's PE Ratio compare vs other companies in the U.S. Telecom Industry?

Price-To-Sales vs Industry: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the US Telecom industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is OOMA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OOMA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).


Share Price vs Fair Value

What is the Fair Price of OOMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OOMA ($12.14) is trading below our estimate of fair value ($65.69)

Significantly Below Fair Value: OOMA is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OOMA's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


70.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OOMA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: OOMA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OOMA is expected to become profitable in the next 3 years.

Revenue vs Market: OOMA's revenue (9.5% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: OOMA's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OOMA's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Ooma 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


26.8%

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, but has reduced losses over the past 5 years at a rate of 26.8% 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 (-17.9%).


Return on Equity

High ROE: OOMA has a negative Return on Equity (-2.97%), as it is currently unprofitable.


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Financial Health

How is Ooma's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: OOMA's short term assets ($67.8M) exceed its short term liabilities ($45.5M).

Long Term Liabilities: OOMA's short term assets ($67.8M) exceed its long term liabilities ($10.9M).


Debt to Equity History and Analysis

Debt Level: OOMA is debt free.

Reducing Debt: OOMA has not had any debt for 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 OOMA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OOMA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.8% per year.


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Dividend

What is Ooma 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 OOMA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OOMA'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 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.


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 OOMA has not reported any payouts.


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Management

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

11.9yrs

Average management tenure


CEO

Eric Stang (61 yo)

13.42yrs

Tenure

US$4,736,784

Compensation

Mr. Eric B. Stang has been the Chief Executive Officer and President of Ooma, Inc. since January 2009. He has been Chairman of the Board of Ooma Inc. since December 2014. Mr. Stang is responsible for the o...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD4.74M) is above average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

Experienced Management: OOMA's management team is seasoned and experienced (11.9 years average tenure).


Board Members

Experienced Board: OOMA's board of directors are considered experienced (8.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ooma, Inc.
  • Ticker: OOMA
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: US$294.599m
  • Shares outstanding: 24.27m
  • Website: https://www.ooma.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
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.