OKTA Okta, Inc. - Fundamental Analysis
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OKTA Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Infrastructure
Current Price
Live
$89.55
Analyst Target
$113.6
+26.9%
Upside
52W High
$127.57
52W Low
$75.05
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$15.87B
P/E
81.41
ROE
3.0%
Profit margin
6.9%
Debt/Equity
0.06
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and no Altman Z-Score available to assess distress risk. While Okta demonstrates strong gross margins and consistent earnings beat rates, its profitability and return metrics remain below sector averages. The stock trades at a significant premium to both the Graham Number ($31.03) and intrinsic value estimate ($32.45), supported by high growth expectations but offset by declining near-term EPS momentum and negative insider sentiment. Analysts maintain a 'buy' recommendation, yet recent insider selling and technical bearishness suggest caution despite improving fundamentals.
Key Strengths
Strong gross margin of 77.08%, reflecting pricing power and scalable software model
Consistent earnings beats over the last 4 quarters (3 out of 4) with double-digit average surprises
Low debt/equity ratio of 0.06, indicating conservative capital structure
Revenue growth of 11.60% YoY outpaces peers like Zoom and DocuSign
High operating cash flow conversion implied by strong earnings growth and improving margins
Key Risks
Piotroski F-Score of 4 suggests weak financial health with concerns around profitability and leverage trends
Current price of $89.55 is 189% above Graham Number ($31.03), indicating substantial overvaluation on defensive metrics
Insider sentiment is bearish with $4.52M in net selling over the last 6 months, including key executives
Technical trend score of 0/100 signals strong bearish momentum in price action
Most recent Q/Q EPS growth declined by 9.9%, showing a deceleration despite strong YoY growth
AI Fair Value Estimate
Based on comprehensive analysis
$38.5
-57.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
40
Moderate
30
65
60
45
0
AI Verdict
Neutral with upside risk if growth sustains
Key drivers: Earnings beat streak, Improving profitability, High insider selling, Rich valuation multiples, Weak short-term EPS momentum
Confidence
70%
Value
30/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 24.40 is reasonable for growth trajectory
Watchpoints
- Current P/E of 81.41 is extremely high
- Price/Sales of 5.59 above sector average
- Trades at 189% premium to Graham Number
Future
65/100
Ref Growth rates
Positives
- 11.60% YoY revenue growth
- 156% YoY earnings growth
- 168.80% Q/Q earnings growth
Watchpoints
- Q/Q EPS down 9.9%
- Forward P/E implies high expectations
Past
60/100
Ref Historical trends
Positives
- Long streak of positive earnings surprises
- Transition from losses to profitability since 2022
Watchpoints
- 5Y price return down 65.7%
- Volatility in quarterly performance
Health
45/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current ratio of 1.47 and quick ratio of 1.35 indicate adequate liquidity
- Debt/equity of 0.06 shows minimal leverage
Watchpoints
- Piotroski F-Score of 4 indicates weak financial health
- ROE of 2.96% and ROA of 0.84% are very low
- No Altman Z-Score available for distress assessment
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend yield
- Dividend strength score of 0/100
- Payout ratio is 0%, but not a dividend-paying company
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$89.55
Analyst Target
$113.6
Upside/Downside
+26.9%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for OKTA and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
OKTA
Okta, Inc.
Primary
|
-65.7% | +25.9% | +4.5% | -6.2% | +1.3% | -2.9% |
|
AKAM
Akamai Technologies, Inc.
Peer
|
+7.7% | +49.9% | +36.9% | +40.1% | +13.6% | +7.8% |
|
DOCU
DocuSign, Inc.
Peer
|
-77.9% | -5.0% | -37.8% | -28.6% | -16.3% | -17.6% |
|
ALAB
Astera Labs, Inc.
Peer
|
+94.0% | +94.0% | +84.2% | -47.6% | -16.3% | +0.9% |
|
AMKR
Amkor Technology, Inc.
Peer
|
+115.2% | +66.3% | +111.5% | +69.2% | -5.2% | -13.0% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
81.41
Forward P/E
24.4
PEG Ratio
N/A
P/B Ratio
2.3
P/S Ratio
5.59
EV/Revenue
5.02
EV/EBITDA
68.2
Market Cap
$15.87B
Profitability
Profit margins and return metrics
Profit Margin
6.87%
Operating Margin
3.1%
Gross Margin
77.08%
ROE
2.96%
ROA
0.84%
Growth
Revenue and earnings growth rates
Revenue Growth
+11.6%
Earnings Growth
+156.0%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+168.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.06
Low debt
Current Ratio
1.47
Good
Quick Ratio
1.35
Good
Cash/Share
$13.9
Quarterly Earnings History
EPS performance vs analyst estimates
2026-03-02
$N/A
2025-12-02
$0.82
+8.1% surprise
2025-08-26
$0.91
+7.6% surprise
2025-05-27
$0.86
+11.5% surprise
Technology Sector Comparison
Comparing OKTA against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
81.41
This Stock
vs
90.97
Sector Avg
-10.5%
(Discount)
Return on Equity (ROE)
2.96%
This Stock
vs
-8.13%
Sector Avg
-136.5%
(Below Avg)
Profit Margin
6.87%
This Stock
vs
-7.75%
Sector Avg
-188.5%
(Weaker)
Debt to Equity
0.06
This Stock
vs
0.76
Sector Avg
-92.0%
(Less Debt)
Revenue Growth
11.6%
This Stock
vs
56.87%
Sector Avg
-79.6%
(Slower)
Current Ratio
1.47
This Stock
vs
3.33
Sector Avg
-56.0%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
OKTA
Okta, Inc.
|
NEUTRAL | $15.87B | 81.41 | 3.0% | 6.9% | $89.55 | |
|
AKAM
Akamai Technologies, Inc.
|
NEUTRAL | $15.6B | 35.07 | 9.2% | 10.7% | $107.67 | |
|
DOCU
DocuSign, Inc.
|
NEUTRAL | $11.36B | 39.66 | 15.2% | 9.6% | $56.71 | |
|
ALAB
Astera Labs, Inc.
|
NEUTRAL | $20.48B | 98.61 | 18.8% | 25.7% | $120.31 | |
|
AMKR
Amkor Technology, Inc.
|
BULLISH | $10.29B | 27.74 | 8.7% | 5.6% | $41.61 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-13 | TIGHE BRETT | Chief Financial Officer | Sale | 10,000 | $950,691 |
| 2026-01-13 | NINAN SHIBU | Officer | Sale | 1,052 | $99,940 |
| 2026-01-07 | SCHWARTZ LARISSA NICOLE | Officer | Sale | 1,899 | $172,315 |
| 2026-01-02 | KELLEHER ERIC ROBERT | President | Sale | 2,409 | $203,326 |
| 2026-01-02 | KELLEHER ERIC ROBERT | President | Stock Award | 2,409 | - |
| 2025-12-22 | KELLEHER ERIC ROBERT | President | Sale | 8,497 | $766,459 |
| 2025-12-22 | MCKINNON TODD | Chief Executive Officer | Sale | 11,286 | $1,026,576 |
| 2025-12-15 | KERREST JACQUES FREDERIC | Director | Stock Award | 842 | - |
| 2025-12-15 | KELLEHER ERIC ROBERT | President | Stock Award | 21,260 | - |
| 2025-12-15 | MCKINNON TODD | Chief Executive Officer | Stock Award | 22,932 | - |
| 2025-12-15 | TIGHE BRETT | Chief Financial Officer | Stock Award | 18,271 | - |
| 2025-12-15 | NINAN SHIBU | Officer | Stock Award | 4,072 | - |
| 2025-12-15 | SCHWARTZ LARISSA NICOLE | Officer | Stock Award | 9,885 | - |
| 2025-12-15 | ADDISON JONATHAN JAMES | Officer | Stock Award | 13,357 | - |
| 2025-12-10 | KERREST JACQUES FREDERIC | Director | Gift | 83,000 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
40 analysts
Stephens & Co.
2026-01-14
Equal-Weight
Overweight
Piper Sandler
2026-01-05
Neutral
Neutral
RBC Capital
2026-01-05
Outperform
Outperform
Jefferies
2025-12-16
Hold
Buy
Needham
2025-12-12
Buy
Buy
BTIG
2025-12-04
Buy
Buy
DA Davidson
2025-12-03
Buy
Buy
Citigroup
2025-12-03
Neutral
Neutral
Goldman Sachs
2025-12-03
Buy
Buy
Piper Sandler
2025-12-03
Neutral
Neutral
Past News Coverage
Recent headlines mentioning OKTA from our newsroom.
Newest → oldest
No matching news yet.