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

2.5%

OOMA

2.2%

US Telecom

0.4%

US Market


1 Year Return

-21.7%

OOMA

11.0%

US Telecom

6.9%

US Market

Return vs Industry: OOMA underperformed the US Telecom industry which returned 11% over the past year.

Return vs Market: OOMA underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

OOMAIndustryMarket
7 Day2.5%2.2%0.4%
30 Day6.1%2.8%-1.2%
90 Day-3.8%11.6%-0.4%
1 Year-21.7%-21.7%16.8%11.0%9.3%6.9%
3 Year34.0%34.0%27.2%8.6%45.8%36.4%
5 Yearn/a42.7%10.2%62.9%45.1%

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?

7.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate OOMA's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate OOMA's fair value to establish if it is undervalued.


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

Low 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 (7.9x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

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

-1.4%

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 (10.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: OOMA's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OOMA is unprofitable, and losses have increased over the past 5 years at a rate of -10.7% 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 (-23%).


Return on Equity

High ROE: OOMA has a negative Return on Equity (-54.22%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: OOMA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: OOMA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ooma's financial position?


Financial Position Analysis

Short Term Liabilities: OOMA's short term assets ($52.3M) exceeds its short term liabilities ($46.3M)

Long Term Liabilities: OOMA's short term assets (52.3M) exceeds its long term liabilities (2.2M)


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: Insufficient data to determine if OOMA's debt is 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.

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

Forecast Cash Runway: OOMA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -82.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

9.2yrs

Average management tenure


CEO

Eric Stang (59yo)

10.8yrs

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 ($USD3.13M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

9.2yrs

Average Tenure

58yo

Average Age

Experienced Management: OOMA's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: OOMA's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: OOMA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$262,40024 Sep 19
Andrew Galligan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$10.50
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: 10.8yrs
    • 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: 9.2yrs
    • Compensation: US$739.02k
  • Tim Sullivan (63yo)

    Vice President of Sales

    • Tenure: 9.3yrs

Board Members

  • Andrew Galligan (63yo)

    Director

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

    Director

    • Tenure: 6.6yrs
    • Compensation: US$168.76k
  • Eric Stang (59yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$3.13m
  • Russ Mann (51yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: US$172.76k
  • Alison Davis (58yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$178.76k
  • Bill Pearce (56yo)

    Lead Non-Management Director

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

    Director

    • Tenure: 3.3yrs
    • 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$242.650m
  • 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 Analysis2019/10/19 00:39
End of Day Share Price2019/10/18 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.