Fact based stock research
Okta (NasdaqGS:OKTA)

US6792951054

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Okta stock research in summary

okta.com

ANALYSIS: With an Obermatt Combined Rank of 93 (better than 93% compared with investment alternatives), Okta (Internet Services & Infrastructure, USA) shares have much better financial characteristics than comparable stocks. Shares of Okta are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 73) and are safely financed (Safety Rank of 82, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 93, is a strong buy recommendation based on Okta's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Okta exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 73). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 82) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Internet Services & Infrastructure
Index	NASDAQ
Size class	Large

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Okta

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	41	56	n/a
GROWTH
GROWTH	58	61	57	n/a
SAFETY
SAFETY	10	45	75	n/a
SENTIMENT
SENTIMENT	n/a	29	49	^new
360° VIEW
360° VIEW	n/a	41	84	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Okta is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	41	56	n/a
GROWTH
GROWTH	58	61	57	n/a
SAFETY
SAFETY	10	45	75	n/a
COMBINED
COMBINED	1	55	90	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Okta the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Okta shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Okta. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 69, which means that the stock price is lower compared with invested capital than for 69% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 38 which means the stock price compared with what market professionals expect for future profits is higher than 62% of comparable companies, indicating a low value concerning Okta's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 69 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Okta's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Okta, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	4	17	41	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	4	17	47	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	19	60	73	n/a
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	4	41	56	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Okta; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Okta shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Okta. Profit Growth has a rank of 99 which means that currently professionals expect the company to grow its profits more than 99% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 75, and Stock Returns has a rank of 53 which means that the stock returns have recently been above 53% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 39 (61% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	82	93	40	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	4	96	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	87	68	n/a
STOCK RETURNS
STOCK RETURNS	63	49	43	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	58	61	57	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Okta.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2025, the company Okta has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Okta is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Okta.Leverage is at 55, meaning the company has a below-average debt-to-equity ratio. It has less debt than 55% of its competitors.Refinancing is at a rank of 77, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Liquidity is at 18, meaning that the company generates less profit to service its debt than 82% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), Okta has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Okta more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	48	22	53	n/a
REFINANCING
REFINANCING	38	59	71	n/a
LIQUIDITY
LIQUIDITY	3	50	17	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	45	75	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Okta and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	65	26	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	100	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	13	57	^new
MARKET PULSE
MARKET PULSE	n/a	40	39	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	29	49	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Okta.
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