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Okta

Nasdaq:OKTA
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OKTA
Nasdaq
$15B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The last earnings update was 33 days ago. More info.


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OKTA Share Price and Events
7 Day Returns
5%
NasdaqGS:OKTA
4.3%
US IT
2.4%
US Market
1 Year Returns
35.3%
NasdaqGS:OKTA
-1.2%
US IT
-10%
US Market
OKTA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Okta (OKTA) 5% 9.3% -2.3% 35.3% 445.8% -
US IT 4.3% -10% -15.6% -1.2% 59.3% 77.7%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • OKTA outperformed the IT industry which returned -1.2% over the past year.
  • OKTA outperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
OKTA
Industry
5yr Volatility vs Market

OKTA Value

 Is Okta undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Okta to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Okta.

NasdaqGS:OKTA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:OKTA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.913 (1 + (1- 21%) (7.16%))
0.976
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.976 * 5.44%)
7.05%

Discounted Cash Flow Calculation for NasdaqGS:OKTA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Okta is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:OKTA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.05%)
2020 27.00 Analyst x13 25.23
2021 28.17 Analyst x15 24.58
2022 79.41 Analyst x16 64.73
2023 182.50 Analyst x5 138.96
2024 367.10 Analyst x1 261.11
2025 547.70 Analyst x1 363.90
2026 689.53 Est @ 25.9% 427.96
2027 818.12 Est @ 18.65% 474.32
2028 929.19 Est @ 13.58% 503.23
2029 1,022.34 Est @ 10.03% 517.21
Present value of next 10 years cash flows $2,801.00
NasdaqGS:OKTA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,022.34 × (1 + 1.74%) ÷ (7.05% – 1.74%)
$19,582.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $19,582.71 ÷ (1 + 7.05%)10
$9,907.10
NasdaqGS:OKTA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,801.00 + $9,907.10
$12,708.10
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,708.10 / 122.77
$103.51
NasdaqGS:OKTA Discount to Share Price
Calculation Result
Value per share (USD) From above. $103.51
Current discount Discount to share price of $125.54
= -1 x ($125.54 - $103.51) / $103.51
-21.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Okta is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Okta's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Okta's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:OKTA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-01-31) in USD $-1.78
NasdaqGS:OKTA Share Price ** NasdaqGS (2020-04-07) in USD $125.54
United States of America IT Industry PE Ratio Median Figure of 71 Publicly-Listed IT Companies 24.84x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Okta.

NasdaqGS:OKTA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:OKTA Share Price ÷ EPS (both in USD)

= 125.54 ÷ -1.78

-70.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Okta is loss making, we can't compare its value to the US IT industry average.
  • Okta is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Okta's expected growth come at a high price?
Raw Data
NasdaqGS:OKTA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -70.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
-2.8%per year
United States of America IT Industry PEG Ratio Median Figure of 60 Publicly-Listed IT Companies 1.89x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Okta, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Okta's assets?
Raw Data
NasdaqGS:OKTA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-01-31) in USD $3.31
NasdaqGS:OKTA Share Price * NasdaqGS (2020-04-07) in USD $125.54
United States of America IT Industry PB Ratio Median Figure of 116 Publicly-Listed IT Companies 2.88x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:OKTA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:OKTA Share Price ÷ Book Value per Share (both in USD)

= 125.54 ÷ 3.31

37.98x

* Primary Listing of Okta.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Okta is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Okta's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Okta has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OKTA Future Performance

 How is Okta expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Okta expected to grow at an attractive rate?
  • Unable to compare Okta's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Okta's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Okta's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:OKTA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:OKTA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts -2.8%
NasdaqGS:OKTA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 20.1%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:OKTA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:OKTA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2025-01-31 2,284 662 -220 1
2024-01-31 1,751 455 -266 1
2023-01-31 1,273 218 -227 7
2022-01-31 1,003 133 -229 20
2021-01-31 773 71 -231 21
2020-04-08
NasdaqGS:OKTA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2020-01-31 586 56 -209
2019-10-31 534 41 -189
2019-07-31 487 37 -155
2019-04-30 441 32 -152
2019-01-31 399 15 -125
2018-10-31 361 5 -118
2018-07-31 322 -11 -121
2018-04-30 288 -12 -108
2018-01-31 257 -25 -110
2017-10-31 228 -32 -105
2017-07-31 204 -31 -94
2017-04-30 181 -37 -88

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Okta is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Okta's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:OKTA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Okta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:OKTA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2025-01-31 -1.47 -1.47 -1.47 1.00
2024-01-31 -1.87 -1.87 -1.87 1.00
2023-01-31 -1.67 -0.92 -2.41 2.00
2022-01-31 -1.79 -1.39 -2.62 8.00
2021-01-31 -1.94 -1.74 -2.30 8.00
2020-04-08
NasdaqGS:OKTA Past Financials Data
Date (Data in USD Millions) EPS *
2020-01-31 -1.78
2019-10-31 -1.66
2019-07-31 -1.39
2019-04-30 -1.38
2019-01-31 -1.17
2018-10-31 -1.12
2018-07-31 -1.19
2018-04-30 -1.09
2018-01-31 -1.32
2017-10-31 -1.68
2017-07-31 -2.17
2017-04-30 -3.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Okta is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Okta's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Okta has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OKTA Past Performance

  How has Okta performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Okta's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Okta does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Okta's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Okta's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Okta's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Okta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:OKTA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-01-31 586.07 -208.91 449.80 159.15
2019-10-31 534.21 -189.25 406.50 145.94
2019-07-31 486.75 -155.27 368.25 131.70
2019-04-30 440.86 -151.50 341.84 116.49
2019-01-31 399.25 -125.50 301.97 102.39
2018-10-31 360.84 -117.73 280.21 90.63
2018-07-31 322.17 -121.28 263.46 82.22
2018-04-30 287.84 -108.11 234.44 74.31
2018-01-31 256.55 -109.85 216.82 69.71
2017-10-31 228.32 -105.03 198.46 62.00
2017-07-31 203.69 -93.89 177.71 52.52
2017-04-30 180.86 -88.46 162.44 45.25
2017-01-31 160.81 -75.06 140.87 38.66
2016-10-31 138.64 -86.71 137.54 37.01
2016-01-31 85.91 -76.30 97.11 28.76
2015-01-31 41.01 -59.11 62.69 18.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Okta has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Okta has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Okta improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Okta's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Okta has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OKTA Health

 How is Okta's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Okta's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Okta is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Okta's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Okta's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Okta Company Filings, last reported 2 months ago.

NasdaqGS:OKTA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2020-01-31 405.34 937.71 1,403.02
2019-10-31 398.39 927.46 1,366.26
2019-07-31 250.73 279.74 557.47
2019-04-30 239.44 275.65 547.48
2019-01-31 252.38 271.63 563.77
2018-10-31 244.50 267.67 546.00
2018-07-31 245.15 263.76 536.26
2018-04-30 249.62 259.92 547.04
2018-01-31 199.34 0.00 229.71
2017-10-31 156.46 0.00 223.62
2017-07-31 152.87 0.00 213.22
2017-04-30 165.92 0.00 224.23
2017-01-31 -15.65 0.00 37.67
2016-10-31 -3.85 0.00 42.13
2016-01-31 46.89 0.00 87.95
2015-01-31 37.33 0.00 60.04
  • Okta's level of debt (231.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 231.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Okta has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Okta has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -51.1% per year.
X
Financial health checks
We assess Okta's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Okta has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OKTA Dividends

 What is Okta's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Okta dividends. Estimated to be 0% next year.
If you bought $2,000 of Okta shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Okta's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Okta's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:OKTA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:OKTA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2025-01-31
2024-01-31
2023-01-31 0.00 2.00
2022-01-31 0.00 2.00
2021-01-31 0.00 2.00
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Okta has not reported any payouts.
  • Unable to verify if Okta's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Okta's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Okta has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Okta's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Okta's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Okta afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Okta has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OKTA Management

 What is the CEO of Okta's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Todd McKinnon
COMPENSATION $5,057,281
AGE 47
TENURE AS CEO 11.3 years
CEO Bio

Mr. Todd McKinnon co-founded Okta, Inc. in 2008 and has been its Chief Executive Officer since January 2009. From October 2003 to February 2009, Mr. McKinnon served in various roles at salesforce.com, inc., most recently as Senior Vice President of Development. From 2003 to 2009, Mr. McKinnon served as the Head of Engineering at Salesforce.com, where he helped grow the team from 15 people to more than 250 and the service from 2 million daily transactions to more than 150 million with industry-leading performance and reliability. His team developed and launched Force.com, the industry’s first platform-as-a-service product and AppExchange, the first online marketplace for cloud computing applications. Prior to Salesforce.com, from 1995 to 2003, he spent nearly a decade working in various engineering and leadership roles at PeopleSoft. He has been the Chairman at Okta, Inc. since February 2017. He has been Director of Cloudwords, Inc. since February 18, 2014. He serves on the Board of Directors for Family House, a not-for-profit organization that provides temporary housing to families of seriously ill children receiving treatment at the University of California San Francisco Children’s Hospital. He has been a Director of Okta, Inc. since January 2009. He is a regular contributor to industry publications, including Forbes, Fast Company and Fortune. Mr. McKinnon holds a Master of Science in Computer Science from California Polytechnic State University, San Luis Obispo and a Bachelor of Science in Management and Information Systems from Brigham Young University.

CEO Compensation
  • Todd's compensation has increased whilst company is loss making.
  • Todd's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Okta management team in years:

5.3
Average Tenure
47
Average Age
  • The average tenure for the Okta management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Todd McKinnon

TITLE
Co-Founder
COMPENSATION
$5M
AGE
47
TENURE
11.3 yrs

Freddy Kerrest

TITLE
Co-Founder
COMPENSATION
$4M
AGE
41
TENURE
12.3 yrs

Bill Losch

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
58
TENURE
6.8 yrs

Jon Runyan

TITLE
General Counsel & Secretary
COMPENSATION
$2M
AGE
42
TENURE
5.3 yrs

Charles Race

TITLE
President of Worldwide Field Operations
COMPENSATION
$3M
AGE
47
TENURE
3.5 yrs

Chris Kramer

TITLE
Chief Accounting Officer
AGE
48
TENURE
0.5 yrs

Hector Aguilar

TITLE
President of Technology

Mark Settle

TITLE
Chief Information Officer
AGE
68
TENURE
3.7 yrs

Dave Gennarelli

TITLE
Vice President of Investor Relations

Ryan Carlson

TITLE
Chief Marketing Officer
Board of Directors Tenure

Average tenure and age of the Okta board of directors in years:

3.2
Average Tenure
55.5
Average Age
  • The tenure for the Okta board of directors is about average.
Board of Directors

Freddy Kerrest

TITLE
Co-Founder
COMPENSATION
$4M
AGE
41
TENURE
1.1 yrs

L. Wilson

TITLE
Non-Employee Director
COMPENSATION
$256K
AGE
55
TENURE
4.6 yrs

Todd McKinnon

TITLE
Co-Founder
COMPENSATION
$5M
AGE
47
TENURE
3.2 yrs

Mike Kourey

TITLE
Non-Employee Director
COMPENSATION
$254K
AGE
59
TENURE
4.5 yrs

Mike Stankey

TITLE
Non-Employee Director
COMPENSATION
$249K
AGE
60
TENURE
3.3 yrs

Ben Horowitz

TITLE
Lead Independent Director
COMPENSATION
$250K
AGE
52

Pat Grady

TITLE
Non-Employee Director
COMPENSATION
$248K
AGE
37
TENURE
5.9 yrs

Shellye Archambeau

TITLE
Independent Director
COMPENSATION
$354K
AGE
56
TENURE
1.3 yrs

Becky Saeger

TITLE
Independent Director
COMPENSATION
$351K
AGE
63
TENURE
1.3 yrs

Robert Dixon

TITLE
Director
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Okta individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Mar 20 Sell William Losch Individual 16. Mar 20 16. Mar 20 -4,973 $97.67 $-485,715
18. Dec 19 Sell William Losch Individual 16. Dec 19 16. Dec 19 -1,108 $116.63 $-129,225
18. Dec 19 Sell Jacques Kerrest Individual 16. Dec 19 16. Dec 19 -1,550 $116.63 $-180,776
16. Dec 19 Sell Jonathan Runyan Individual 16. Dec 19 16. Dec 19 -707 $116.63 $-82,457
18. Sep 19 Sell William Losch Individual 16. Sep 19 16. Sep 19 -1,108 $102.57 $-113,642
X
Management checks
We assess Okta's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Okta has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OKTA News

Simply Wall St News

Have Insiders Been Selling Okta, Inc. (NASDAQ:OKTA) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Okta The Last 12 Months Of Insider Transactions At Okta In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Jacques Kerrest, sold US$127k worth of shares at a price of US$80.93 per share. … NasdaqGS:OKTA Recent Insider Trading, August 26th 2019 Insider Ownership of Okta Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. … It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Okta insider transactions don't fill us with confidence.

Simply Wall St -

Should You Investigate Okta, Inc. (NASDAQ:OKTA) At US$133?

In addition to this, it seems like Okta’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … NasdaqGS:OKTA Past and Future Earnings, August 4th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Is Okta's (NASDAQ:OKTA) Share Price Gain Of 145% Well Earned?

See our latest analysis for Okta Okta isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … When a company doesn't make profits, we'd generally expect to see good revenue growth. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Simply Wall St -

The Okta (NASDAQ:OKTA) Share Price Has Gained 145%, So Why Not Pay It Some Attention?

View our latest analysis for Okta Because Okta is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Okta grew its revenue by 53% last year. … NasdaqGS:OKTA Income Statement, July 1st 2019 Okta is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth.

Simply Wall St -

What does Okta, Inc.'s (NASDAQ:OKTA) Balance Sheet Tell Us About Its Future?

View our latest analysis for Okta Does OKTA Produce Much Cash Relative To Its Debt? … With this growth in debt, OKTA currently has US$564m remaining in cash and short-term investments to keep the business going. … Additionally, OKTA has produced cash from operations of US$15m during the same period of time, leading to an operating cash to total debt ratio of 5.6%, meaning that OKTA’s operating cash is less than its debt.

Simply Wall St -

How Much Are Okta, Inc. (NASDAQ:OKTA) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Okta, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that even when the share price was below the current price of US$103, an insider wanted to cash in some shares.

Simply Wall St -

How Financially Strong Is Okta, Inc. (NASDAQ:OKTA)?

While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … OKTA’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Did Business Growth Power Okta's Share Price Gain of 126%?

When a company doesn't make profits, we'd generally expect to see good revenue growth. … That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. … It's great to see strong revenue growth, but the question is whether it can be sustained.

Simply Wall St -

What Kind Of Shareholder Owns Most Okta, Inc. (NASDAQ:OKTA) Stock?

Generally speaking, as a company grows, institutions will increase their ownership. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … Okta is a pretty big company.

Simply Wall St -

Should Okta Inc's (NASDAQ:OKTA) Recent Earnings Decline Worry You?

When Okta Inc's (NASDAQ:OKTA) announced its latest earnings (30 April 2018), I wanted to understand how these figures stacked up against its past performance. … View out our latest analysis for Okta? … OKTA is loss-making, with the most recent trailing twelve-month earnings of -US$112.61m (from 30 April 2018), which compared to last year has become

Simply Wall St -

OKTA Company Info

Description

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for cloud, mobile, and Web applications, as well as for data; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; and API Access Management that enables organizations to secure APIs.It also offers customer support and training, and professional services. Okta, Inc. sells its products directly to customers through sales force, as well as through channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California.

Details
Name: Okta, Inc.
OKTA
Exchange: NasdaqGS
Founded: 2009
$15,413,094,660
122,774,372
Website: http://www.okta.com
Address: Okta, Inc.
100 First Street,
San Francisco,
California, 94105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS OKTA Class A Common Stock Nasdaq Global Select US USD 07. Apr 2017
DB 0OK Class A Common Stock Deutsche Boerse AG DE EUR 07. Apr 2017
LSE 0KB7 Class A Common Stock London Stock Exchange GB USD 07. Apr 2017
BRSE 0OK Class A Common Stock Berne Stock Exchange CH CHF 07. Apr 2017
BMV OKTA * Class A Common Stock Bolsa Mexicana de Valores MX MXN 07. Apr 2017
Number of employees
Current staff
Staff numbers
2,248
Okta employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 09:38
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/06
Last earnings reported: 2020/01/31
Last annual earnings reported: 2020/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.