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Okta Inc Class A OKTA

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Stock XNAS Rating as of
$72.50 −1.13 (1.53%)
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As of Delayed Price Pre-Open: $72.09 −0.40
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Company Report

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Okta Earnings: Security Breach Magnifies Macroeconomic Headwinds; Weak Fiscal 2025 Guidance

Malik Ahmed Khan

We are reducing our fair value estimate for no-moat Okta to $80 from $85 after the firm’s strong third-quarter performance was more than offset by its weak preliminary guidance for fiscal 2025. While this quarter’s financial results highlighted solid sales and profitability expansion, we remain concerned about the potential financial blowback to the firm following a security breach Okta disclosed in October.

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Price vs Fair Value

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OKTA is trading at a 9% discount.
Price
$72.50
Fair Value
$79.00
Uncertainty
Very High
1-Star Price
$352.00
5-Star Price
$13.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Okta has strong secular tailwinds behind its back as the IAM market is expected to grow rapidly.

Bears

There are behemoths such as Microsoft, Oracle, and IBM that have products in the IAM space that provide competition to Okta.

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News

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Trading Information

Previous Close Price
$73.63
Day Range
$71.81–74.25
52-Week Range
$60.22–91.50
Bid/Ask
$71.81 / $72.40
Market Cap
$11.89 Bil
Volume/Avg
235 / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
57.92
Price/Sales
5.42
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta’s workforce offerings enable a company’s employees to securely access its cloud-based and on-premises resources. The firm’s customer offerings allow its clients’ customers to securely access the client’s applications.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
5,913
Website
https://www.okta.com

Competitors

Valuation

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Metric
OKTA
MSFT
ORCL
Price/Earnings (Normalized)
 57.9235.3221.88
Price/Book Value
 2.0912.43133.81
Price/Sales
 5.4212.626.33
Price/Cash Flow
 31.8628.4718.46
Price/Earnings
OKTA
MSFT
ORCL

Financial Strength

Metric
OKTA
MSFT
ORCL
Quick Ratio
 1.651.450.73
Current Ratio
 1.771.660.87
Interest Coverage
 −55.4446.913.64
Quick Ratio
OKTA
MSFT
ORCL

Profitability

Metric
OKTA
MSFT
ORCL
Return on Assets (Normalized)
 2.51%21.73%11.12%
Return on Equity (Normalized)
 4.05%43.59%—
Return on Invested Capital (Normalized)
 2.40%32.22%19.87%
Return on Assets
OKTA
MSFT
ORCL

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