OOMAOoma, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (4.3×) and margins widening.
Operating profit is fully backed by cash.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is OOMA?
Ooma, Inc. earns 6.8% 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% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 3.5%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2027
- Cash conversion
- 4.31×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.7%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −1.6% |
| FY2022 | −1.0% |
| FY2023 | −2.7% |
| FY2024 | −1.7% |
| FY2025 | −2.7% |
| FY2026 | 1.6% |
Details›
- Gross margin12 months to Q2 2027
- 61%
- Operating margin12 months to Q2 2027
- 3.5%
- Net margin12 months to Q2 2027
- 3.6%
- Free cash flow margin
- 9.9%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $307M
- Free cash flow, trailing twelve months
- $30M
- Net income, trailing twelve months
- $11M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
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, Application
Ranks #60 of 96 by RyuScore