(OOMA) Ooma - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 518m USD | Total Return: 36.4% in 12m
Industry Rotation: +23.5
Avg Turnover: 5.11M
EPS Trend: -0.7%
Qual. Beats: 1
Rev. Trend: 96.7%
Qual. Beats: 1
Warnings
P/E ratio 82.0
Altman Z'' -2.95 < 1.0 - financial distress zone
Tailwinds
Supp Ema8, Supp Ema20, Leader, Tailwind
Ooma, Inc. (OOMA) is a Sunnyvale-based provider of cloud-based communications and unified-communications-as-a-service (UCaaS) solutions. The company serves small to medium-sized businesses and residential consumers across the United States and Canada through a portfolio that includes Ooma Office, Ooma Enterprise, and residential VoIP services like Ooma Telo.
The business operates primarily on a recurring subscription model, which is common in the telecommunications sector to ensure predictable revenue streams and high customer retention. As the industry shifts away from traditional copper-wire infrastructure, Ooma’s AirDial and LTE solutions specifically target the replacement of plain old telephone service (POTS) lines for critical applications like fire alarms and elevators.
For a deeper look into the companys valuation metrics and historical performance, ValueRay offers additional data points to assist your analysis. Ooma distributes its hardware and software through a multi-channel strategy involving direct sales, major retailers, and technology service distributors.
- Subscription revenue growth from SMB adoption of Ooma Office and Enterprise
- Expanding enterprise UCaaS margins through strategic acquisitions like FluentStream and Phone.com
- Customer churn rates in residential Telo segment impact long-term recurring cash flow
- Increasing demand for AirDial solutions as legacy copper phone lines are decommissioned
- Operating leverage improvement through scaling cloud infrastructure across business and consumer platforms
| Net Income: 6.46m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -3.80 > 1.0 |
| NWC/Revenue: -1.82% < 20% (prev 1.76%; Δ -3.58% < -1%) |
| CFO/TA 0.12 > 3% & CFO 27.7m > Net Income 6.46m |
| Net Debt (37.7m) to EBITDA (18.6m): 2.03 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (27.9m) vs 12m ago 2.78% < -2% |
| Gross Margin: 61.13% > 18% (prev 0.60%; Δ 6.05k% > 0.5%) |
| Asset Turnover: 145.3% > 50% (prev 172.2%; Δ -26.91% > 0%) |
| Interest Coverage Ratio: 3.12 > 6 (EBITDA TTM 18.6m / Interest Expense TTM 1.36m) |
| A: -0.02 (Total Current Assets 66.7m - Total Current Liabilities 71.7m) / Total Assets 227.5m |
| B: -0.59 (Retained Earnings -133.7m / Total Assets 227.5m) |
| C: 0.02 (EBIT TTM 4.26m / Avg Total Assets 188.4m) |
| D: -0.99 (Book Value of Equity -133.7m / Total Liabilities 134.6m) |
| Altman-Z'' Score: -2.95 = D |
| DSRI: 1.38 (Receivables 11.8m/8.04m, Revenue 273.6m/256.9m) |
| GMI: 0.98 (GM 61.13% / 60.16%) |
| AQI: 1.33 (AQ_t 0.59 / AQ_t-1 0.44) |
| SGI: 1.07 (Revenue 273.6m / 256.9m) |
| TATA: -0.09 (NI 6.46m - CFO 27.7m) / TA 227.5m) |
| Beneish M-Score: -2.58 (Cap -4..+1) = A |
Over the past week, the price has changed by -2.54%, over one month by +26.90%, over three months by +64.94% and over the past year by +36.38%.
- StrongBuy: 6
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19 | 0.7% |
P/E Forward = 14.9701
P/S = 1.8929
P/B = 5.7099
P/EG = 1.82
Revenue TTM = 273.6m USD
EBIT TTM = 4.26m USD
EBITDA TTM = 18.6m USD
Long Term Debt = 51.5m USD (from longTermDebt, last quarter)
Short Term Debt = 6.37m USD (from shortTermDebt, last quarter)
Debt = 57.9m USD (corrected: LT Debt 51.5m + ST Debt 6.37m)
Net Debt = 37.7m USD (recalculated: Debt 57.9m - CCE 20.1m)
Enterprise Value = 555.6m USD (517.9m + Debt 57.9m - CCE 20.1m)
Interest Coverage Ratio = 3.12 (Ebit TTM 4.26m / Interest Expense TTM 1.36m)
EV/FCF = 25.14x (Enterprise Value 555.6m / FCF TTM 22.1m)
FCF Yield = 3.98% (FCF TTM 22.1m / Enterprise Value 555.6m)
FCF Margin = 8.08% (FCF TTM 22.1m / Revenue TTM 273.6m)
Net Margin = 2.36% (Net Income TTM 6.46m / Revenue TTM 273.6m)
Gross Margin = 61.13% ((Revenue TTM 273.6m - Cost of Revenue TTM 106.4m) / Revenue TTM)
Gross Margin QoQ = 61.77% (prev 60.23%)
Tobins Q-Ratio = 2.44 (Enterprise Value 555.6m / Total Assets 227.5m)
Interest Expense / Debt = 0.75% (Interest Expense 432k / Debt 57.9m)
Taxrate = 21.0% (US default 21%)
NOPAT = 3.36m (EBIT 4.26m * (1 - 21.00%))
Current Ratio = 0.93 (Total Current Assets 66.7m / Total Current Liabilities 71.7m)
Debt / Equity = 0.62 (Debt 57.9m / totalStockholderEquity, last quarter 92.9m)
Debt / EBITDA = 2.03 (Net Debt 37.7m / EBITDA 18.6m)
Debt / FCF = 1.71 (Net Debt 37.7m / FCF TTM 22.1m)
Total Stockholder Equity = 89.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.43% (Net Income 6.46m / Total Assets 227.5m)
RoE = 7.20% (Net Income TTM 6.46m / Total Stockholder Equity 89.7m)
RoCE = 3.01% (EBIT 4.26m / Capital Employed (Equity 89.7m + L.T.Debt 51.5m))
RoIC = 3.23% (NOPAT 3.36m / Invested Capital 104.2m)
WACC = 8.35% (E(517.9m)/V(575.8m) * Re(9.22%) + D(57.9m)/V(575.8m) * Rd(0.75%) * (1-Tc(0.21)))
Discount Rate = 9.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 3.12%
[DCF] Terminal Value 80.45% ; FCFF base≈21.3m ; Y1≈26.3m ; Y5≈44.9m
[DCF] Fair Price = 24.79 (EV 718.8m - Net Debt 37.7m = Equity 681.1m / Shares 27.5m; r=8.35% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -0.72 | EPS CAGR: 4.20% | SUE: 1.46 | # QB: 1
Revenue Correlation: 96.74 | Revenue CAGR: 11.05% | SUE: 1.70 | # QB: 1
EPS current Quarter (2026-07-31): EPS=0.31 | Chg30d=+0.32% | Revisions=+43% | Analysts=7
EPS current Year (2027-01-31): EPS=1.29 | Chg30d=+0.16% | Revisions=N/A | GrowthEPS=+23.8% | GrowthRev=+18.0%
EPS next Year (2028-01-31): EPS=1.43 | Chg30d=+0.50% | Revisions=+20% | GrowthEPS=+11.2% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +43%