Okta, Inc. (NASDAQ: OKTA)

Sector: Technology Industry: Software - Infrastructure CIK: 0001660134
P/B 2.31
P/E 81.61
P/S 5.60
Market Cap 15.91 Bn
ROIC (Qtr) 1.27
Div Yield % 0.00
Rev 1y % (Qtr) 11.58
Total Debt (Qtr) 423.00 Mn
Debt/Equity (Qtr) 0.06

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 912M provides robust 2.16x coverage of total debt 423M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 3.64B provides 8.60x coverage of total debt 423M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 895M exceeds capital expenditure of 17M by 52.65x, indicating strong organic growth funding capability.
  • Operating cash flow of 912M provides exceptional 228x coverage of interest expenses 4M, showing strong debt service capability.
  • Robust tangible asset base of 3.64B provides 3.58x coverage of working capital 1.02B, indicating strong operational backing.

Cons

  • Investment activities of 46M provide weak support for R&D spending of 631M, which is 0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 645M provide limited coverage of acquisition spending of (56M), which is -11.52x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 912M provides insufficient coverage of deferred revenue obligations of 1.59B, which is 0.58x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 912M shows concerning coverage of stock compensation expenses of 541M, with a 1.69 ratio indicating potential earnings quality issues.
  • Operating earnings of 220M show weak coverage of depreciation charges of 96M, with a 2.29 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.73 2.56
EV to Cash from Ops. 17.52 38.32
EV to Debt 37.77 -11.37
EV to EBIT 72.63 -12.79
EV to EBITDA 77.19 7.72
EV to Free Cash Flow [EV/FCF] 17.85 24.22
EV to Market Cap 1.00 0.58
EV to Revenue 5.63 -35.00
Price to Book Value [P/B] 2.31 3.74
Price to Earnings [P/E] 81.61 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 55.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 34.62 -404.11
Cash and Equivalents Growth (1y) % 108.06 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 715.35 31.15
EBITDA Growth (1y) % 387.50 49.02
EBIT Growth (1y) % 1,016.67 25.85
EBT Growth (1y) % 844.83 17.82
EPS Growth (1y) % 582.61 70.69
FCF Growth (1y) % 46.24 295.45
Gross Profit Growth (1y) % 13.54 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.31 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.30 1.21
Current Ratio 1.47 2.57
Debt to Equity Ratio 0.06 -0.93
Interest Cover Ratio 55.00 -13.15
Times Interest Earned 55.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 11.10 -544.82
EBIT Margin % 7.75 -197.78
EBT Margin % 7.61 -602.74
Gross Margin % 77.10 52.06
Net Profit Margin % 6.90 -605.52