Ooma Inc (OOMA) stock analysis
Close on Nov 11, 2026Market cap $505.08MP/E 48.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Ooma passes 10 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 14.5%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 1.4% of shareholders' equity, under the 40% we consider low.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 2704% of total debt.
Low bankruptcy risk
The Altman Z-score is 3.07; above 3 is the safe zone and below 1.8 the distress zone.
What to watch
Margin of safety under 20%
The price is 71.2% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $18.30 is above our fair value estimate of $10.69.
Return on equity under 15%
Return on equity was 11.7% over the last twelve months and averaged -2.5% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 8.2% a year over the last three fiscal years, short of the 10% we look for.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Ooma's P/E of 48.2 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Ooma's price-to-book of 5.13 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $18.30 is above our fair value estimate of $10.69.
Margin of safety under 20%
The price is 71.2% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing under 10% a year
Revenue grew 8.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 17.2% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Ooma raised its full fiscal year 2027 Total revenue outlook on Aug 26, 2026.
Gross margin improving
Gross margin was 61.5% over the last twelve months, against 61.0% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 11.7% over the last twelve months and averaged -2.5% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 14.5%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Ooma's return on equity of 11.7% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 3.6% over the last twelve months, against a 5-year average of -0.7%.
Net margin above the industry
Ooma's net margin of 3.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health3/6
Low debt
Debt is 1.4% of shareholders' equity, under the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 2704% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.95 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.07; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Ooma has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$10.69
The share price is 71% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 27.6× | – | 27.6× | $10.48 | 40% |
| EV/EBITDA | 18.8× | – | 18.8× | $11.33 | 35% |
| P/B | 4.0× | 4.6× | 3.3× | $14.22 | 10% |
| Earnings power | 8.7% cost of equity | – | – | $7.42 | 15% |
| Fair value | $10.69 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $6.10M
- Value traded per 1% price move
- $3.96M
Downside
Low risk
- Typical loss in a bad month
- 12.7%
- Volatility (annualized)
- 46%
- Sharpe ratio, 1 year
- 1.11
- Beta to the S&P 500 (5Y)
- 0.77
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +6.5% | +8.2% | +10.1% | +11.9% | |
| Gross profit | +7.2% | +6.7% | +9.8% | +13.6% | |
| Free cash flow | +9.6% | +83.7% | +78.9% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -31.3% | -7.2% | 7.2% | |
| Return on assets | -17.3% | -2.9% | 3.4% | |
| Current ratio | 2.04 | 1.20 | 0.93 | |
| Inventory turnover | 8.3× | 6.2× | 7.3× | |
| Capex to revenue | 1.5% | 1.9% | 2.0% | |
| Diluted shares | 17M | 22M | 28M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Ooma generated $82.00M from operations and spent $43.71M on capital expenditure, dividends and share buybacks. 63% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 2.4% | 1.45× | 2.11× | 7.2% |
| FY2025 | -2.7% | 1.67× | 1.89× | -8.4% |
| FY2024 | -0.4% | 1.63× | 2.06× | -1.2% |
| FY2023 | -1.7% | 1.80× | 2.10× | -6.4% |
| FY2022 | -0.9% | 1.94× | 2.19× | -3.9% |
| FY2021 | -1.4% | 1.99× | 2.50× | -7.2% |
| FY2020 | -12.4% | 1.91× | 2.59× | -61.2% |
| FY2019 | -11.3% | 1.70× | 2.17× | -41.6% |
| FY2018 | -11.5% | 1.56× | 1.91× | -34.1% |
| FY2017 | -12.4% | 1.39× | 1.81× | -31.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$6.46M
- Cash generatingOperating cash flow above zero$27.69M
- Return on assets improvedROA up on the prior year-4.3% → 4.3%
- Earnings backed by cashOperating cash flow above net income$27.69M vs $6.46M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.09 → 0.93
- No dilutionShare count did not rise27M → 28M
- Gross margin improvedGross margin up on the prior year60.74% → 61.13%
- More efficientAsset turnover rose1.61 → 1.83
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