Okta, Inc. (NASDAQ: OKTA)

Sector: Technology Industry: Software - Infrastructure CIK: 0001660134
Market Cap 16.20 Bn
P/B 2.35
P/E 83.09
P/S 5.71
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

Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.76 2.69
EV to Cash from Ops. EV/CFO 17.84 28.91
EV to Debt EV to Debt 38.46 19.83
EV to EBIT EV/EBIT 73.94 -9.95
EV to EBITDA EV/EBITDA 78.58 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 18.17 26.09
EV to Market Cap EV to Market Cap 1.00 0.36
EV to Revenue EV/Rev 5.73 -9.34
Price to Book Value [P/B] P/B 2.35 3.88
Price to Earnings [P/E] P/E 83.09 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 55.00 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 34.62 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 108.06 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 715.35 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 387.50 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,016.67 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 844.83 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 582.61 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 46.24 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.54 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.31 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.30 1.22
Current Ratio Curr Ratio (Qtr) 1.47 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 -0.96
Interest Cover Ratio Int Coverage (Qtr) 55.00 -14.20
Times Interest Earned Times Interest Earned (Qtr) 55.00 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.10 -548.16
EBIT Margin % EBIT Margin % (Qtr) 7.75 -199.84
EBT Margin % EBT Margin % (Qtr) 7.61 -607.20
Gross Margin % Gross Margin % (Qtr) 77.10 51.88
Net Profit Margin % Net Margin % (Qtr) 6.90 -610.00