NYSE:OOMA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


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

4.8%

OOMA

-0.2%

US Telecom

0.5%

US Market


1 Year Return

36.0%

OOMA

-5.0%

US Telecom

18.7%

US Market

Return vs Industry: OOMA exceeded the US Telecom industry which returned -5% over the past year.

Return vs Market: OOMA exceeded the US Market which returned 18.7% over the past year.


Shareholder returns

OOMAIndustryMarket
7 Day4.8%-0.2%0.5%
30 Day5.2%3.2%4.9%
90 Day48.1%7.3%19.8%
1 Year36.0%36.0%-0.2%-5.0%21.2%18.7%
3 Year111.9%111.9%11.3%-4.7%46.2%36.8%
5 Year64.4%64.4%27.2%-1.4%85.3%65.1%

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?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OOMA ($16.74) is trading below our estimate of fair value ($31.18)

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


Price To Earnings Ratio

PE vs Industry: OOMA is unprofitable, so we can't compare its PE Ratio to the US 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 (11.9x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

How is Ooma forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

57.7%

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 (8.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: OOMA's revenue (8.9% 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


Next Steps

Past Performance

How has Ooma performed over the past 5 years?

-6.4%

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 6.4% 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 (-13.5%).


Return on Equity

High ROE: OOMA has a negative Return on Equity (-48.47%), 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 ($48.1M) exceed its short term liabilities ($44.2M).

Long Term Liabilities: OOMA's short term assets ($48.1M) exceed its long term liabilities ($4.7M).


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


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 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 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.


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?

10.0yrs

Average management tenure


CEO

Eric Stang (60 yo)

11.58yrs

Tenure

US$3,629,518

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 ($USD3.63M) is above average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Stang
President11.58yrsUS$3.63m4.36%
$ 16.1m
Ravi Narula
CFO & Treasurer5.67yrsUS$1.37m0.59%
$ 2.2m
Jenny Yeh
VP, General Counsel & Secretary1.67yrsUS$1.03m0.0072%
$ 26.7k
Tobin Farrand
Vice President of Engineering & Operations14.17yrsno datano data
Matthew Robison
Director of IR & Corporate Developmentno datano datano data
James Gustke
Vice President of Marketing10yrsUS$739.02k0.32%
$ 1.2m
Timothy Sullivan
Vice President of Sales10.08yrsno datano data

10.0yrs

Average Tenure

59yo

Average Age

Experienced Management: OOMA's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Stang
President11.58yrsUS$3.63m4.36%
$ 16.1m
Andrew Galligan
Independent Director5.67yrsUS$161.21k0.73%
$ 2.7m
Peter Goettner
Independent Director7.42yrsUS$157.21k0.37%
$ 1.4m
Judith Hand
Director0.17yrno datano data
Russell Mann
Independent Director10.92yrsUS$161.21k0.24%
$ 904.7k
William Pearce
Independent Lead Non-Management Director3.17yrsUS$174.21k0.39%
$ 1.4m
Susan Butenhoff
Independent Director4.08yrsUS$157.21k0.21%
$ 792.2k

5.7yrs

Average Tenure

59yo

Average Age

Experienced Board: OOMA's board of directors are considered experienced (5.7 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 6.6%.


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$369.411m
  • Shares outstanding: 22.07m
  • 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 software-as-a-service and unified-communications-as- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 12:00
End of Day Share Price2020/08/13 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.