Is the business good?
How good a business is OKTA?
Okta, Inc. earns 3.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
3.0%
Return on invested capital · cost of capital 9.0% · 6.0 points below what the capital costs: growth destroys value
- Operating margin
- 5.5%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q1 2027
- Cash conversion
- 3.69×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −24% |
| FY2022 | −59% |
| FY2023 | −44% |
| FY2024 | −23% |
| FY2025 | −2.8% |
| FY2026 | 5.1% |
Details›
- Gross margin12 months to Q1 2027
- 77%
- Operating margin12 months to Q1 2027
- 5.5%
- Net margin12 months to Q1 2027
- 8.2%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $3.00B
- Free cash flow, trailing twelve months
- $911M
- Net income, trailing twelve months
- $247M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #60 of 78 by Smart Score