Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin13.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin14.4%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital$1.1B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book4.59x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$225M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income7.8%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$137M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Okta, Inc.
Okta, Inc. operates as an identity partner in the United States and internationally. It offers Single Sign-on to secure access to cloud and on-premises applications from any device; Adaptive MFA for a risk-based layer of security for an organization's cloud, mobile, and web applications; API Access Management, which enables organizations to secure APIs as systems; Access Gateway, which extends the Okta platform to hybrid IT environments; Okta Device Access, which extends Okta platform's secure access management to the device login experience; Universal Directory for a cloud-based system of record. The company also provides Identity Threat Protection; Identity Security Posture Management for security measures and safeguards digital assets; Okta for AI Agents to discover, register, authenticate, govern, and manage AI Agents; Identity Governance and Administration products, including Lifecycle Management, Okta Workflows, Okta Identity Governance, and Cross App Access; Advanced Server Access for continuous and contextual access management to secure cloud infrastructure; and Okta Privileged Access to reduce risk with unified access and governance management. In addition, it provides Universal Login, a standards-based login infrastructure; Attack Protection Suite to minimize risks associated with identity-targeted attacks; Adaptive MFA; Passwordless, which enables users to login without a password; Machine-to-Machine Tokens for authentication and authorization with NHIs; Private Cloud, a deployment option; Organizations, which support a large number of partners or customers; Extensibility, which enables customers to build customized identity flows; Fine Grained Authorization, which manages complex authorization scenarios; and Auth0 for AI Agents to secure and scale agentic applications. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
Okta, Inc. operates as an identity partner in the United States and internationally. It offers Single Sign-on to secure access to cloud and on-premises applications from any device; Adaptive MFA for a risk-based layer of security for an organization's cloud, mobile, and web applications; API Access Management, which enables organizations to secure APIs as systems; Access Gateway, which extends the Okta platform to hybrid IT environments; Okta Device Access, which extends Okta platform's secure access management to the device login experience; Universal Directory for a cloud-based system of record. The company also provides Identity Threat Protection; Identity Security Posture Management for security measures and safeguards digital assets; Okta for AI Agents to discover, register, authenticate, govern, and manage AI Agents; Identity Governance and Administration products, including Lifecycle Management, Okta Workflows, Okta Identity Governance, and Cross App Access; Advanced Server Access for continuous and contextual access management to secure cloud infrastructure; and Okta Privileged Access to reduce risk with unified access and governance management. In addition, it provides Universal Login, a standards-based login infrastructure; Attack Protection Suite to minimize risks associated with identity-targeted attacks; Adaptive MFA; Passwordless, which enables users to login without a password; Machine-to-Machine Tokens for authentication and authorization with NHIs; Private Cloud, a deployment option; Organizations, which support a large number of partners or customers; Extensibility, which enables customers to build customized identity flows; Fine Grained Authorization, which manages complex authorization scenarios; and Auth0 for AI Agents to secure and scale agentic applications. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Okta, Inc. at $191.33.
The business passes only 0 of 6 of Graham's defensive criteria — well below his required standard.
At $191.33, the stock trades at a 675% premium to its Graham Number of $24.70. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 34.6x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
79.6%▲
77.1%
Operating Margin %
13.3%▲
3.1%
Net Income %
14.4%▲
5.8%
Diluted EPS
0.65▲
0.24
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$9.1B
$9.2B
Total Debt
$53M▼
$423M
Working Capital
$1.1B▲
$1.0B
Years to Pay Debt
0.46
9.84
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$225M▲
$211M
Owner Earnings
$137M
$74M
CapEx % of Net Income
7.8%
16.3%
Income Statement
2026
2025
Tax Effect Of Unusual Items
0
0
Tax Rate For Calcs
0
0
Normalized EBITDA
138,000
75,000
Total Unusual Items
0
Total Unusual Items Excluding Goodwill
0
Net Income From Continuing Operation Net Minority Interest
116,000
43,000
Reconciled Depreciation
12,000
24,000
Reconciled Cost Of Revenue
164,000
170,000
EBITDA
138,000
75,000
EBIT
126,000
51,000
Net Interest Income
19,000
27,000
Interest Expense
0
1,000
Interest Income
19,000
28,000
Normalized Income
116,000
43,000
Net Income From Continuing And Discontinued Operation
116,000
43,000
Total Expenses
698,000
719,000
Total Operating Income As Reported
107,000
23,000
Diluted Average Shares
178,808
178,402
Basic Average Shares
174,298
176,524
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
116,000
45,000
Average Dilution Earnings
2,000
Net Income Common Stockholders
116,000
43,000
Net Income
116,000
43,000
Net Income Including Noncontrolling Interests
116,000
43,000
Net Income Continuous Operations
116,000
43,000
Tax Provision
10,000
7,000
Pretax Income
126,000
50,000
Other Income Expense
Special Income Charges
0
Restructuring And Mergern Acquisition
Net Non Operating Interest Income Expense
19,000
27,000
Interest Expense Non Operating
0
1,000
Interest Income Non Operating
19,000
28,000
Operating Income
107,000
23,000
Operating Expense
534,000
549,000
Research And Development
163,000
160,000
Selling General And Administration
371,000
389,000
Selling And Marketing Expense
273,000
271,000
General And Administrative Expense
98,000
118,000
Other Gand A
98,000
118,000
Gross Profit
641,000
572,000
Cost Of Revenue
164,000
170,000
Total Revenue
805,000
742,000
Operating Revenue
805,000
742,000
Balance Sheet
2026
2025
Ordinary Shares Number
174,817
177,228
Share Issued
174,817
177,228
Net Debt
Total Debt
53,000
423,000
Tangible Book Value
1,406,000
1,300,000
Invested Capital
6,973,000
7,243,000
Working Capital
1,064,000
1,017,000
Net Tangible Assets
1,406,000
1,300,000
Capital Lease Obligations
53,000
73,000
Common Stock Equity
6,973,000
6,893,000
Total Capitalization
6,973,000
6,893,000
Total Equity Gross Minority Interest
6,973,000
6,893,000
Stockholders Equity
6,973,000
6,893,000
Gains Losses Not Affecting Retained Earnings
2,000
4,000
Other Equity Adjustments
2,000
4,000
Retained Earnings
-2,377,000
-2,630,000
Additional Paid In Capital
9,348,000
9,519,000
Total Liabilities Net Minority Interest
2,165,000
2,336,000
Total Non Current Liabilities Net Minority Interest
140,000
152,000
Other Non Current Liabilities
57,000
50,000
Non Current Deferred Liabilities
30,000
29,000
Non Current Deferred Revenue
30,000
29,000
Long Term Debt And Capital Lease Obligation
53,000
73,000
Long Term Capital Lease Obligation
53,000
73,000
Long Term Debt
Current Liabilities
2,025,000
2,184,000
Current Deferred Liabilities
1,751,000
1,557,000
Current Deferred Revenue
1,751,000
1,557,000
Current Debt And Capital Lease Obligation
350,000
Current Debt
350,000
Other Current Borrowings
350,000
Pensionand Other Post Retirement Benefit Plans Current
158,000
173,000
Payables And Accrued Expenses
116,000
104,000
Current Accrued Expenses
106,000
91,000
Payables
10,000
13,000
Accounts Payable
10,000
13,000
Total Assets
9,138,000
9,229,000
Total Non Current Assets
6,049,000
6,028,000
Other Non Current Assets
65,000
51,000
Non Current Deferred Assets
331,000
280,000
Goodwill And Other Intangible Assets
5,567,000
5,593,000
Other Intangible Assets
80,000
106,000
Goodwill
5,487,000
5,487,000
Net PPE
86,000
104,000
Accumulated Depreciation
Gross PPE
86,000
104,000
Leases
Other Properties
86,000
104,000
Machinery Furniture Equipment
Buildings And Improvements
Current Assets
3,089,000
3,201,000
Other Current Assets
148,000
120,000
Current Deferred Assets
173,000
155,000
Receivables
469,000
463,000
Accrued Interest Receivable
Accounts Receivable
469,000
463,000
Allowance For Doubtful Accounts Receivable
-6,000
Gross Accounts Receivable
469,000
Cash Cash Equivalents And Short Term Investments
2,299,000
2,463,000
Other Short Term Investments
1,536,000
1,818,000
Cash And Cash Equivalents
763,000
645,000
Cash Equivalents
Cash Financial
Cash Flow
2026
2025
Free Cash Flow
225,000
211,000
Repurchase Of Capital Stock
-124,000
Repayment Of Debt
-510,000
Capital Expenditure
-9,000
-7,000
End Cash Position
769,000
651,000
Beginning Cash Position
768,000
884,000
Effect Of Exchange Rate Changes
-3,000
-1,000
Changes In Cash
4,000
-232,000
Financing Cash Flow
-501,000
-555,000
Cash Flow From Continuing Financing Activities
-501,000
-555,000
Net Other Financing Charges
-52,000
-48,000
Proceeds From Stock Option Exercised
25,000
3,000
Net Common Stock Issuance
-124,000
Common Stock Payments
-124,000
Net Issuance Payments Of Debt
-510,000
Net Long Term Debt Issuance
-510,000
Long Term Debt Payments
-510,000
Investing Cash Flow
271,000
105,000
Cash Flow From Continuing Investing Activities
271,000
105,000
Net Investment Purchase And Sale
280,000
165,000
Sale Of Investment
653,000
501,000
Purchase Of Investment
-373,000
-336,000
Net Business Purchase And Sale
0
-53,000
Purchase Of Business
0
-53,000
Net PPE Purchase And Sale
-1,000
-4,000
Purchase Of PPE
-1,000
-4,000
Capital Expenditure Reported
-6,000
-3,000
Operating Cash Flow
234,000
218,000
Cash Flow From Continuing Operating Activities
234,000
218,000
Change In Working Capital
-57,000
-31,000
Change In Other Working Capital
-30,000
-47,000
Change In Other Current Liabilities
-9,000
-8,000
Change In Other Current Assets
5,000
5,000
Change In Payables And Accrued Expense
47,000
40,000
Change In Accrued Expense
50,000
39,000
Change In Payable
-3,000
1,000
Change In Account Payable
-3,000
1,000
Change In Prepaid Assets
13,000
26,000
Change In Receivables
-83,000
-47,000
Changes In Account Receivables
-83,000
-47,000
Other Non Cash Items
48,000
40,000
Stock Based Compensation
114,000
138,000
Deferred Tax
1,000
4,000
Deferred Income Tax
1,000
4,000
Depreciation Amortization Depletion
12,000
24,000
Depreciation And Amortization
12,000
24,000
Depreciation
Net Income From Continuing Operations
116,000
43,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $728M▲ $805M+10.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 76.9%▲ 79.6%+2.7pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 14.7%▲ 13.3%-1.4pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 9.2%▲ 14.4%+5.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$805M/qtr (≈$3.2B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.53x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$225M
vs Positive
Operating Cash Flow
$234M
Latest quarter · Buffett's cash reality check
ROIC
1.2%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
4.6x
Net Assets: $7.0B
Asset Context — Software - Infrastructure
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
Peers & Industry
No auto-detected peers for Software - Infrastructure. You can manually compare OKTA against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.54%
Low — management has little skin in the game
Return on Equity (ROE)
1.7%
Weak — poor returns on equity
Return on Assets (ROA)
1.3%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$73M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-87.1% YoY
Debt is declining — management is deleveraging
Leadership Team
Todd McKinnon
Co-Founder, Chairman & CEO
Age 53
Pay: $1,159,452
1.000% of net income
Jacques Frederic Kerrest
Co-Founder & Executive Vice Chairman
Age 47
Pay: $39,207
0.034% of net income
Eric Kelleher
President & COO
Age 53
Pay: $825,343
0.712% of net income
Brett Tighe
Chief Financial Officer
Age 45
Pay: $865,232
0.746% of net income
Dave Gennarelli
Senior Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
11.19%
18,695,465
FMR, LLC
9.74%
16,272,067
Vanguard Portfolio Management LLC
5.35%
8,949,045
Vanguard Capital Management LLC
4.54%
7,594,193
State Street Corporation
3.75%
6,274,631
First Trust Advisors LP
2.69%
4,497,939
Allspring Global Investments Holdings, LLC
2.17%
3,633,828
Morgan Stanley
2.06%
3,440,371
Risk Analysis
Beta (Market Risk)
0.79
Low volatility — more stable than the market
Short Interest
5.1% of float
Moderate short interest
Debt-to-Equity
0.01x
Conservative balance sheet — low financial risk
Current Ratio
1.52x
Adequate liquidity
52-Week Price Range
Low: $62.66Current: $191.33High: $192.59
Currently at 99% of 52-week range
Okta, Inc. (OKTA) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $24.70. Margin of safety: 0%. Gross profit margin: 79.6%. Operating margin: 13.3%. Net margin: 14.4%. Market cap: $33.4B. Sector: Technology. Industry: Software - Infrastructure. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.