OKTAOkta, Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (4.7×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is OKTA?
Okta, Inc. earns 3.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 7.5%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2027
- Cash conversion
- 4.66×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.2%
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 Q2 2027
- 78%
- Operating margin12 months to Q2 2027
- 7.5%
- Net margin12 months to Q2 2027
- 9.6%
- Free cash flow margin
- 32%
- R&D as % of revenue
- 21%
- Revenue, trailing twelve months
- $3.07B
- Free cash flow, trailing twelve months
- $979M
- Net income, trailing twelve months
- $296M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #48 of 80 by RyuScore