Okta Inc Beneish M Score

OKTA
 Stock
  

USD 53.32  2.07  4.04%   

This module uses fundamental data of Okta Inc to approximate the value of its Beneish M Score. Okta Inc M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Okta Inc Piotroski F Score and Okta Inc Altman Z Score analysis.
  
Okta Inc Debt Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Current was at 90.63 Million. The current year Issuance Repayment of Debt Securities is expected to grow to about 979.5 M, whereas Total Debt is forecasted to decline to about 1.1 B. Okta Inc PPandE Turnover is projected to drop slightly based on the last few years of reporting. The past year's PPandE Turnover was at 20.27. The current year Receivables Turnover is expected to grow to 5.38, whereas Accounts Payable Turnover is forecasted to decline to 72.33.
At this time, it appears that Okta Inc Cl is an unlikely manipulator. The earnings manipulation may begin if Okta Inc's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Okta Inc executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Okta Inc's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.85
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.93Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.95Focus

Okta Inc Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Okta Inc's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense562.4 M521.2 M
Significantly Up
Increasing
Slightly volatile
Revenues1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables161.4 M149.6 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net221.8 M205.5 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations112.3 M104.1 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current1.2 B1.2 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Investments Current1.1 BB
Significantly Up
Increasing
Slightly volatile
Investments1.1 BB
Significantly Up
Increasing
Slightly volatile
Gross Margin64.7169.512
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion22.1 M20.5 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current929.7 M1.1 B
Significantly Down
Increasing
Slightly volatile
Debt Current126.1 M90.6 M
Significantly Up
Decreasing
Slightly volatile
Total Debt1.1 B1.3 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current441.3 M409 M
Significantly Up
Increasing
Slightly volatile
Current Assets3.3 BB
Significantly Up
Increasing
Slightly volatile
Total Assets9.9 B9.2 B
Significantly Up
Increasing
Slightly volatile

Okta Inc Cl Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Okta Inc's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Okta Inc in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Okta Inc's degree of accounting gimmicks and manipulations.

About Okta Inc Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

22.1 Million

Okta Inc Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 20.49 Million

Okta Inc Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Okta Inc. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues259.99 M399.25 M586.07 M835.42 M1.3 B1.4 B
Total Assets367.4 M864.34 M1.96 B3.3 B9.21 B9.93 B
Current Assets315.42 M709.33 M1.6 B2.88 B3.04 B3.28 B
Assets Non Current37.84 M81.77 M276.2 M355.67 M409.02 M441.31 M
Total Liabilities203.81 M611.96 M1.55 B2.6 B3.28 B3.54 B
Current Liabilities190.76 M564.19 M546.96 M1.55 B1.24 B1.34 B
Operating Income(116.36 M)(119.62 M)(185.83 M)(204.16 M)(767.1 M)(787.29 M)
Investments14.39 M101.77 M265.37 M882.98 M1.02 B1.1 B
Investments Current14.39 M101.77 M265.37 M882.98 M1.02 B1.1 B
Gross Margin68.9471.5972.873.9469.5164.71

About Okta Inc Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Okta Inc Cl's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Okta Inc using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Okta Inc Cl based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California. Okta Inc operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 5776 people.

Okta Inc Investors Sentiment

The influence of Okta Inc's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Okta Inc. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Okta Inc's public news can be used to forecast risks associated with investment in Okta Inc. The trend in average sentiment can be used to explain how an investor holding Okta Inc can time the market purely based on public headlines and social activities around Okta Inc Cl. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Okta Inc's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Okta Inc's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Okta Inc's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Okta Inc.

Okta Inc Implied Volatility

    
  271.0  
Okta Inc's implied volatility exposes the market's sentiment of Okta Inc Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Okta Inc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Okta Inc stock will not fluctuate a lot when Okta Inc's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Okta Inc in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Okta Inc's short interest history, or implied volatility extrapolated from Okta Inc options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Okta Inc Cl using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Okta Inc Piotroski F Score and Okta Inc Altman Z Score analysis. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for analysis

When running Okta Inc Cl price analysis, check to measure Okta Inc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Okta Inc is operating at the current time. Most of Okta Inc's value examination focuses on studying past and present price action to predict the probability of Okta Inc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Okta Inc's price. Additionally, you may evaluate how the addition of Okta Inc to your portfolios can decrease your overall portfolio volatility.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Is Okta Inc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Okta Inc. If investors know Okta Inc will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Okta Inc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
8.3 B
Quarterly Revenue Growth YOY
0.43
Return On Assets
(0.05) 
Return On Equity
(0.16) 
The market value of Okta Inc Cl is measured differently than its book value, which is the value of Okta Inc that is recorded on the company's balance sheet. Investors also form their own opinion of Okta Inc's value that differs from its market value or its book value, called intrinsic value, which is Okta Inc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Okta Inc's market value can be influenced by many factors that don't directly affect Okta Inc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Okta Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine Okta Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Okta Inc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.