OKTA INC Scores High in Value Investing Analysis

A recent report highlights OKTA INC's strong ratings in a value investing strategy, noting its low P/E and P/B ratios. Despite failing to meet some critical financial benchmarks, the stock shows potential within the Computer Services sector.

Date: 07-11-2024

AI Rating: 5

The report presents an evaluation of OKTA INC's fundamentals based on Benjamin Graham's Value Investor model. According to the analysis, OKTA scores 57%, indicating it is a large-cap value stock in the Computer Services industry. This score suggests that while the stock has appealing attributes, it also has significant weaknesses that potential investors should consider.

The report highlights specific areas of evaluation:

P/E Ratio: OKTA passes this criterion, which signifies that the stock may be undervalued compared to its earnings, a positive indicator for potential investors.
Price/Book Ratio: Also a pass, indicating that the stock's price is attractive relative to its book value.
Sales: OKTA is noted to have passed the sales test, which can be seen as a positive sign of the firm's revenue stream.
Current Ratio: Fails this test, suggesting liquidity issues may exist.
Long-Term Debt in Relation to Net Current Assets: This is a passing area indicating reasonable long-term debt management.
Long-Term EPS Growth: A failure in this area implies concerns regarding the company's ability to expand earnings over time, which may negatively affect investor sentiment.

Overall, while OKTA displays attributes of a potential value investment through its low P/E and P/B ratios, it faces hurdles in liquidity and long-term earnings growth that may deter some investors.

Stocks: OKTA