Okta Inc.
Find Ratings ReportsOKTA INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. OKTA INC has strong liquidity. Currently, the Quick Ratio is 1.55 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.72% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 605.0 | 510.21 |
EBITDA ($mil) | -33.0 | -116.81 |
EBIT ($mil) | -53.0 | -142.81 |
Net Income ($mil) | -44.0 | -152.92 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2202.0 | 2580.0 |
Total Assets ($mil) | 8989.0 | 9307.0 |
Total Debt ($mil) | 1266.0 | 2367.0 |
Equity ($mil) | 5888.0 | 5466.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 79.34 | 77.76 |
EBITDA Margin | -5.45 | -22.89 |
Operating Margin | -8.76 | -27.99 |
Sales Turnover | 0.25 | 0.2 |
Return on Assets | -3.94 | -8.75 |
Return on Equity | -6.03 | -14.91 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.67 | 2.2 |
Debt/Capital | 0.18 | 0.3 |
Interest Expense | 1.0 | 2.41 |
Interest Coverage | -53.0 | -59.21 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 165.32 | 161.31 |
Div / share | 0.0 | 0.0 |
EPS | -0.26 | -0.95 |
Book value / share | 35.61 | 33.89 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2376335.0 | 2807299.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 3.02 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 17.67. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. After reviewing these and other key valuation criteria, OKTA INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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OKTA NM | Peers 76.09 | OKTA 34.78 | Peers 32.96 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. OKTA's P/E is negative making this valuation measure meaningless. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OKTA is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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OKTA 41.19 | Peers 26.19 | OKTA NA | Peers 0.62 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. OKTA is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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OKTA 3.02 | Peers 17.67 | OKTA 58.03 | Peers 89.51 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OKTA is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, OKTA is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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OKTA 7.87 | Peers 8.21 | OKTA 21.79 | Peers 15.59 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OKTA is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. OKTA has a sales growth rate that significantly exceeds its peers. |
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