Skip to Content

Okta Inc Class A OKTA

Morningstar Rating
$96.19 −4.20 (4.18%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

We Continue to View Okta as a Leader in the Identity Space

We believe Okta is poised for long-term success as a leader in the identity and access management, or IAM, space. Okta’s Identity Cloud, which weaves together the firm’s workforce and customer offerings, stands to grow in importance to its clients as zero-trust security infrastructures, digital transformations, and cloud migrations increase the company’s value proposition. However, we assign Okta with a no-moat rating as we don’t foresee excess returns on capital in the next few years. Yet, we believe the firm’s platform, impressive number of integrations, and a broad range of SKUs have allowed the business to be on the cusp of generating high customer switching costs and a network effect.

Price vs Fair Value

OKTA is trading at a 635% premium.
Price
$96.19
Fair Value
$288.00
Uncertainty
Very High
1-Star Price
$286.00
5-Star Price
$56.00
Economic Moat
Xpf
Capital Allocation
Bcyjcrjgr

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if OKTA is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$100.39
Day Range
$95.9099.42
52-Week Range
$65.04114.50
Bid/Ask
$96.00 / $96.99
Market Cap
$16.18 Bil
Volume/Avg
5,040 / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
47.53
Price/Sales
6.73
Dividend Yield (Trailing)
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
5,710

Competitors

Valuation

Metric
OKTA
ORCL
MSFT
Price/Earnings (Normalized)
47.5325.0038.40
Price/Book Value
2.7244.0813.02
Price/Sales
6.737.4214.00
Price/Cash Flow
28.9920.5229.77
Price/Earnings
OKTA
ORCL
MSFT

Financial Strength

Metric
OKTA
ORCL
MSFT
Quick Ratio
1.560.591.05
Current Ratio
1.730.721.24
Interest Coverage
−46.864.2138.50
Quick Ratio
OKTA
ORCL
MSFT

Profitability

Metric
OKTA
ORCL
MSFT
Return on Assets (Normalized)
4.12%11.49%19.65%
Return on Equity (Normalized)
6.35%363.05%38.71%
Return on Invested Capital (Normalized)
4.12%19.73%28.79%
Return on Assets
OKTA
ORCL
MSFT
See how this stock stacks up to its competitors with Morningstar Investor

Software - Infrastructure Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Microsoft Corp
MSFT
GgrghpzdrxGchwm$3.3 Tril
Oracle Corp
ORCL
FvbffHdmbsz$383.8 Bil
Adobe Inc
ADBE
DltgdwwmfRnzs$249.7 Bil
Palo Alto Networks Inc
PANW
DmtwjzgwbJtznv$107.5 Bil
Synopsys Inc
SNPS
HrnzzfhndkVjhhqsq$87.4 Bil
CrowdStrike Holdings Inc Class A
CRWD
GsndsbzwwVtszpkc$86.4 Bil
Palantir Technologies Inc Ordinary Shares - Class A
PLTR
ChcjvdbjfDrdptf$62.8 Bil
Fortinet Inc
FTNT
WcjxfjyMcr$45.2 Bil
Block Inc Class A
SQ
NtyyfvcdNbnsgld$44.3 Bil
Zscaler Inc
ZS
GypdzkklQdjpvf$29.5 Bil

Sponsor Center