OOMA Stock Analysis: Ooma | NYSE
Software - Application | NYSE, USA | Market Cap: 491m USD | 12M Return: 49% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.27M
EPS Trend: 89.3%
Qual. Beats: 10
Rev. Trend: 98.1%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Ooma, Inc. (NYSE: OOMA) is a Sunnyvale, California-based communications services provider founded in 2003 and publicly listed since 2015. The company serves both business and residential customers in the United States and Canada, generating revenue primarily through subscription-based service plans complemented by hardware sales in its residential segment.
On the business side, Ooma offers cloud-based communication solutions ranging from Ooma Office for small and medium-sized businesses to Ooma Enterprise, a unified-communications-as-a-service (UCaaS) platform. Through acquisitions, the company has expanded its B2B footprint with 2600Hz, OnSIP, FluentStream, and Phone.com, broadening its offerings in voice, video, messaging, and contact-center capabilities for remote and hybrid workforces.
On the consumer side, Ooma markets a portfolio of home phone products, including the Ooma Telo family of devices (standard, Air, and LTE variants) alongside residential calling plans such as PureVoice HD, Ooma Basic, and the subscription-based Ooma Premier feature bundle. Distribution spans direct sales, online channels, retailers, value-added resellers, and technology services distributors.
Operating within the Integrated Telecommunication Services sub-industry of the Communication Services sector, Ooma competes in the increasingly crowded UCaaS and cloud telephony market against peers such as RingCentral and 8x8. Its hybrid model-combining proprietary hardware with recurring SaaS-style subscriptions for both SMBs and households-is a key differentiator versus pure-play software competitors.
- Business segment revenue growth driven by Enterprise UCaaS expansion
- Ooma AirDial POTS replacement gains traction amid copper line sunset
- UCaaS competition from RingCentral and Zoom pressures pricing and churn
| Net Income: 9.18m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.96 > 1.0 |
| NWC/Revenue: -1.48% < 20% (prev 3.10%; Δ -4.58% < -1%) |
| CFO/TA 0.13 > 3% & CFO 30.4m > Net Income 9.18m |
| Net Debt (65.7m) to EBITDA (24.4m): 2.69 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.1m) vs 12m ago 2.38% < -2% |
| Gross Margin: 61.34% > 18% (prev 60.96%; Δ 0.38% > 0.5%) |
| Asset Turnover: 154.3% > 50% (prev 174.4%; Δ -20.09% > 0%) |
| Interest Coverage Ratio: 3.77 > 6 (EBIT TTM 8.04m / Interest Expense TTM 2.13m) |
| A: -0.02 (Total Current Assets 67.4m - Total Current Liabilities 71.7m) / Total Assets 226.9m |
| B: -0.58 (Retained Earnings -131.1m / Total Assets 226.9m) |
| C: 0.04 (EBIT TTM 8.04m / Avg Total Assets 187.8m) |
| D: 0.73 (Book Value of Equity 95.9m / Total Liabilities 131.0m) |
| Altman-Z'' = -0.95 = CCC |
| DSRI: 1.35 (Receivables 12.3m/8.17m, Revenue 289.7m/259.4m) |
| GMI: 0.99 (GM 60.96% / 61.34%) |
| AQI: 1.34 (AQ_t 0.58 / AQ_t-1 0.43) |
| SGI: 1.12 (Revenue 289.7m / 259.4m) |
| TATA: -0.09 (NI 9.18m - CFO 30.4m) / TA 226.9m) |
| Beneish M = -2.46 (Cap -4..+1) = BBB |
As of July 01, 2026, the stock is trading at USD 19.22 with a total of 247,306 shares traded. Over the past week, the price has changed by +6.36%, over one month by +5.95%, over three months by +32.10% and over the past year by +48.99%.
Current recommended Stop Loss: 17.60 (which is 8.4% or 1.9 ATR below the current price).
Ooma has received a consensus analysts rating of 4.71. Therefore, it is recommended to buy OOMA.
- StrongBuy: 6
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 23 | 19.7% |
P/E Trailing = 54.1515
P/E Forward = 13.9082
P/S = 1.6946
P/B = 5.2982
P/EG = 1.82
Revenue TTM = 289.7m USD
EBIT TTM = 8.04m USD
EBITDA TTM = 24.4m USD
Long Term Debt = 48.3m USD (from longTermDebt, last quarter)
Short Term Debt = 8.98m USD (from shortTermDebt, last quarter)
Debt = 82.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 15.0m
Net Debt = 65.7m USD (calculated: Debt 82.9m - CCE 17.2m)
Enterprise Value = 556.7m USD (491.0m + Debt 82.9m - CCE 17.2m)
Interest Coverage Ratio = 3.77 (Ebit TTM 8.04m / Interest Expense TTM 2.13m)
EV/FCF = 22.68x (Enterprise Value 556.7m / FCF TTM 24.5m)
FCF Yield = 4.41% (FCF TTM 24.5m / Enterprise Value 556.7m)
FCF Margin = 8.47% (FCF TTM 24.5m / Revenue TTM 289.7m)
Net Margin = 3.17% (Net Income TTM 9.18m / Revenue TTM 289.7m)
Gross Margin = 61.34% ((Revenue TTM 289.7m - Cost of Revenue TTM 112.0m) / Revenue TTM)
Gross Margin QoQ = 62.44% (prev 61.77%)
Tobins Q-Ratio = 2.45 (Enterprise Value 556.7m / Total Assets 226.9m)
Interest Expense / Debt = 2.58% (Interest Expense 2.13m / Debt 82.9m)
Taxrate = 5.70% (156k / 2.74m)
NOPAT = 7.58m (EBIT 8.04m * (1 - 5.70%))
Current Ratio = 0.94 (Total Current Assets 67.4m / Total Current Liabilities 71.7m)
Debt / Equity = 0.86 (Debt 82.9m / totalStockholderEquity, last quarter 95.9m)
Debt / EBITDA = 2.69 (Net Debt 65.7m / EBITDA 24.4m)
Debt / FCF = 2.68 (Net Debt 65.7m / FCF TTM 24.5m)
Total Stockholder Equity = 91.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.89% (Net Income 9.18m / Total Assets 226.9m)
RoE = 10.01% (Net Income TTM 9.18m / Total Stockholder Equity 91.7m)
RoCE = 5.74% (EBIT 8.04m / Capital Employed (Equity 91.7m + L.T.Debt 48.3m))
RoIC = 5.07% (NOPAT 7.58m / Invested Capital 149.7m)
WACC = 8.02% (E(491.0m)/V(573.9m) * Re(8.96%) + D(82.9m)/V(573.9m) * Rd(2.58%) * (1-Tc(0.06)))
Discount Rate = 8.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 3.66%
[DCF] Terminal Value 77.97% ; FCFF base≈22.9m ; Y1≈26.3m ; Y5≈38.7m
[DCF] Fair Price = 18.80 (EV 582.2m - Net Debt 65.7m = Equity 516.4m / Shares 27.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 89.32 | EPS CAGR: 28.99% | SUE: 1.93 | # QB: 10
Revenue Correlation: 98.07 | Revenue CAGR: 7.86% | SUE: 0.70 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.33 | Chg30d=+5.44% | Revisions=+64% | Analysts=7
EPS next Quarter (2026-10-31): EPS=0.32 | Chg30d=-1.76% | Revisions=-25% | Analysts=7
EPS current Year (2027-01-31): EPS=1.31 | Chg30d=+1.78% | Revisions=+60% | GrowthEPS=+26.0% | GrowthRev=+19.7%
EPS next Year (2028-01-31): EPS=1.49 | Chg30d=+4.50% | Revisions=+45% | GrowthEPS=+14.1% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +64%