OKTAOKTA
US • —
$138.50
P/E
100.39
PEG
1.07
FCF Yield
3.7%
Rev Growth YoY
+11.8% YoY
Gross Margin
77.4%
Health Score
7/10
D/E Ratio
0.05
Confidence
LOW
Business Snapshot
Okta is a leading provider of identity and access management solutions, offering a cloud-based platform that enables secure user authentication and single sign-on for enterprises. The company competes in the cybersecurity market as a dominant challenger, with a strong position in the workforce identity segment. With a market cap of $24.08B, Okta is a large-cap company, though TTM revenue data is not available to assess its financial scale precisely. The company generates the vast majority of its revenue from subscription-based services, supported by a platform that benefits from high switching costs and increasing enterprise demand for Zero Trust security architecture.
Financial Health
Okta reports a gross margin of 77.4%, reflecting a high-margin software business model, though a prior-year comparison is unavailable to determine direction. Net margin stands at 8.2%, indicating the company is profitable on a trailing basis but has limited earnings breadth relative to revenue...
Risk Assessment
- VALUATION — P/E of 100.39x is over 4.5x the sector average of 22x, creating a high bar for continued earnings growth to justify the premium.
- EARNINGS QUALITY — The strong earnings beat rate of 4 out of 4 quarters is actually a positive signal, but the 93.8% earnings growth versus 11.8% revenue growth raises questions about sustainability if driven by one-time cost reductions.
- REVENUE DECELERATION — Revenue growth YoY of 11.8% is modest for a tech company trading at 100x earnings, implying expectations for significant acceleration or margin expansion.
- INSIDER SELLING — 0 insider buys versus 8 insider sells over the last 90 days signals a net selling bias from company management.
- 52-WEEK POSITION — 52-week high and low data is not available, preventing a range-based risk assessment.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Okta reports a gross margin of 77.4%, reflecting a high-margin software business model, though a prior-year comparison is unavailable to determine direction. Net margin stands at 8.2%, indicating the company is profitable on a trailing basis but has limited earnings breadth relative to revenue. The balance sheet is conservative, with a Debt/Equity ratio of 0.05x and a current ratio of 1.43x, suggesting a low-leverage profile that provides ample liquidity. Free cash flow is a strong $896.00M, yielding 3.7%, confirming the company is generating substantial cash from operations. Overall financial health is solid, with the cash flow providing flexibility for reinvestment or strategic moves, though modest net margins limit dividend capacity.
- VALUATION — P/E of 100.39x is over 4.5x the sector average of 22x, creating a high bar for continued earnings growth to justify the premium. - EARNINGS QUALITY — The strong earnings beat rate of 4 out of 4 quarters is actually a positive signal, but the 93.8% earnings growth versus 11.8% revenue growth raises questions about sustainability if driven by one-time cost reductions. - REVENUE DECELERATION — Revenue growth YoY of 11.8% is modest for a tech company trading at 100x earnings, implying expectations for significant acceleration or margin expansion. - INSIDER SELLING — 0 insider buys versus 8 insider sells over the last 90 days signals a net selling bias from company management. - 52-WEEK POSITION — 52-week high and low data is not available, preventing a range-based risk assessment. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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