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Okta (OKTA) Stock Analysis

This is a peer-relative look at Okta (OKTA): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Okta (OKTA)
Profile ItemOKTA
NameOkta Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryInternet Services & Infrastructure
Market Capitalization36.97 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateApril 7, 2017
Security TypeCommon Stock

Price Performance

Cumulative Growth

OKTA
GSPC
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Okta (OKTA) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Okta (OKTA) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Okta (OKTA) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Total Return (1Y)122.81%-14.13%
Total Return (3Y, Annualized)37.86%9.16%
Total Return (5Y, Annualized)-2.34%-7.01%

Risk Profile

Drawdown History

OKTA
GSPC
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Okta (OKTA) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Okta (OKTA) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Volatility (1Y, Annualized)66.13%61.49%
Beta (5Y)0.741.15
Max Drawdown (5Y)-83.22%-76.54%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. OKTA is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Sharpe Ratio (1Y)1.79-0.33
Sortino Ratio (1Y)3.46-0.47

Profitability

ROE (TTM)

Okta (OKTA) posts ROE of 4.31%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

OKTA

Software & Services industry group

4.31%

Group distribution
Max
62.27%
Q3
17.80%
Median
5.22%
OKTA
4.31%
Q1
-14.31%
Min
-59.77%
Largest peers
ORCL
41.19%
PLTR
38.10%
MSFT
34.04%
SAP
18.32%
OKTA
4.31%
PANW
1.74%
CRWD
1.46%
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Where Okta (OKTA) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Okta (OKTA) keeps 9.63% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

OKTA

Software & Services industry group

9.63%

Group distribution
Max
41.43%
Q3
14.59%
OKTA
9.63%
Median
3.69%
Q1
-6.16%
Min
-35.38%
Largest peers
PLTR
49.01%
MSFT
40.31%
ORCL
26.36%
SAP
20.41%
OKTA
9.63%
PANW
2.67%
CRWD
0.83%
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Where Okta (OKTA) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Okta (OKTA) turns 13.29% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

OKTA

Software & Services industry group

13.29%

Group distribution
Max
47.12%
Q3
15.20%
OKTA
13.29%
Median
4.73%
Q1
-7.53%
Min
-39.13%
Largest peers
PLTR
47.12%
MSFT
45.11%
ORCL
35.63%
SAP
27.62%
OKTA
13.29%
PANW
5.40%
CRWD
-2.26%
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Where Okta (OKTA) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
ROE (TTM)4.31%5.22%
ROA (TTM)1.58%2.06%
Net Margin (TTM)9.63%3.69%
Operating Margin (TTM)13.29%4.73%
Gross Margin (TTM)78.13%69.09%

Growth

Revenue Growth

Okta (OKTA) grew revenue 11.84%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Okta (OKTA): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

Okta (OKTA) grew earnings per share 2,083.33%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Okta (OKTA): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Revenue Growth (YoY)11.84%14.44%
Revenue Growth (3Y CAGR)16.25%13.51%
EPS Growth (YoY)2,083.33%7.79%
EPS Growth (3Y CAGR)--18.25%

Financial Strength

Current Ratio (MRQ)

Okta (OKTA) has current ratio of 1.53, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

OKTA

Software & Services industry group

1.53

Group distribution
Max
5.11
Q3
2.75
Median
1.64
OKTA
1.53
Q1
1.03
Min
0.03
Largest peers
PLTR
7.23
CRWD
1.57
OKTA
1.53
MSFT
1.23
ORCL
1.17
SAP
1.15
PANW
0.87
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Where Okta (OKTA) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Okta (OKTA) has debt-to-equity ratio of 0.01, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

OKTA

Software & Services industry group

0.01

Group distribution
Max
2.52
Q3
1.10
Median
0.36
Q1
0.06
OKTA
0.01
Min
0.00
Largest peers
ORCL
2.52
MSFT
0.29
SAP
0.22
CRWD
0.16
PANW
0.09
PLTR
0.02
OKTA
0.01
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Where Okta (OKTA) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Current Ratio (MRQ)1.531.64
Debt / Equity (MRQ)0.010.36
Net Debt / EBITDA-7.000.04

Dividends

Dividend Yield (TTM)

Okta (OKTA) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

OKTA

Software & Services industry group

0.00%

Group distribution
OKTA
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ORCL
1.45%
SAP
1.19%
MSFT
0.71%
OKTA
0.00%
PLTR
0.00%
PANW
0.00%
CRWD
0.00%
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Where Okta (OKTA) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Okta (OKTA) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

OKTA

Software & Services industry group

0.00%

Group distribution
OKTA
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SAP
37.53%
ORCL
31.35%
MSFT
19.83%
OKTA
0.00%
PLTR
0.00%
PANW
0.00%
CRWD
0.00%
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Where Okta (OKTA) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Okta (OKTA) trades at P/E ratio of 126.64, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

OKTA

Software & Services industry group

126.64

Group distribution
OKTA
126.64
Max
118.64
Q3
59.01
Median
30.61
Q1
16.60
Min
0.34
Largest peers
CRWD
9,001.33
PANW
1,008.10
PLTR
161.32
OKTA
126.64
MSFT
28.58
SAP
27.85
ORCL
21.66
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Where Okta (OKTA) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Okta (OKTA) trades at 12.03 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

OKTA

Software & Services industry group

12.03

Group distribution
Max
19.63
OKTA
12.03
Q3
9.47
Median
4.34
Q1
2.29
Min
0.02
Largest peers
PLTR
73.68
CRWD
51.24
PANW
28.73
OKTA
12.03
MSFT
11.58
SAP
6.30
ORCL
6.01
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Where Okta (OKTA) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Okta (OKTA) trades at 5.30 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

OKTA

Software & Services industry group

5.30

Group distribution
Max
19.52
Q3
9.07
OKTA
5.30
Median
4.28
Q1
2.04
Min
-3.49
Largest peers
SAP
65.65
CRWD
54.19
PLTR
46.40
PANW
11.95
MSFT
8.69
ORCL
6.96
OKTA
5.30
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Where Okta (OKTA) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Okta (OKTA) metric values compared with Software & Services industry-group medians
MetricCurrent stock: OKTAIndustry group median
P/E Ratio (TTM)126.6430.61
P/S Ratio (TTM)12.034.34
P/B Ratio (MRQ)5.304.28
Free Cash Flow Yield (TTM)2.81%3.78%