Is Ooma Stock a Good Investment?
Ooma Investment Advice | OOMA |
- Examine Ooma's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ooma's leadership team and their track record. Good management can help Ooma navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Telecommunication Services space and any emerging trends that could impact Ooma's business and its evolving consumer preferences.
- Compare Ooma's performance and market position to its competitors. Analyze how Ooma is positioned in terms of product offerings, innovation, and market share.
- Check if Ooma pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ooma's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ooma Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ooma Inc is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Ooma Stock
Researching Ooma's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 74.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.82. Ooma Inc recorded a loss per share of 0.37. The entity had not issued any dividends in recent years.
To determine if Ooma is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ooma's research are outlined below:
| The company reported the previous year's revenue of 236.74 M. Net Loss for the year was (835 K) with profit before overhead, payroll, taxes, and interest of 153.84 M. | |
| About 74.0% of the company shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Ooma, Inc. Sees Large Drop in Short Interest |
Ooma Quarterly Accounts Payable |
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Ooma uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ooma Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ooma's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 28th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 7th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Ooma's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ooma's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-05-21 | 2019-04-30 | -0.05 | -0.04 | 0.01 | 20 | ||
2018-08-28 | 2018-07-31 | -0.06 | -0.05 | 0.01 | 16 | ||
2018-05-22 | 2018-04-30 | -0.05 | -0.04 | 0.01 | 20 | ||
2018-03-06 | 2018-01-31 | -0.04 | -0.03 | 0.01 | 25 | ||
2017-05-23 | 2017-04-30 | -0.03 | -0.02 | 0.01 | 33 | ||
2024-12-03 | 2024-10-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2023-05-23 | 2023-04-30 | 0.14 | 0.16 | 0.02 | 14 | ||
2023-03-02 | 2023-01-31 | 0.14 | 0.16 | 0.02 | 14 |
Know Ooma's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ooma is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ooma Inc backward and forwards among themselves. Ooma's institutional investor refers to the entity that pools money to purchase Ooma's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 307.5 K | Nuveen Asset Management, Llc | 2024-09-30 | 277.9 K | Herald Investment Management Ltd | 2024-09-30 | 260 K | Goldman Sachs Group Inc | 2024-09-30 | 220.5 K | Northern Trust Corp | 2024-09-30 | 204.5 K | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 179.7 K | Millennium Management Llc | 2024-09-30 | 178.6 K | Perkins Capital Management Inc | 2024-09-30 | 168.1 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-09-30 | 163.2 K | Blackrock Inc | 2024-09-30 | 3.9 M | Trigran Investments Inc | 2024-09-30 | 3.8 M |
Ooma's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 417.69 M.Market Cap |
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Ooma's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.01) | (0.01) | |
| Return On Capital Employed | (0.03) | (0.03) | |
| Return On Equity | (0.01) | (0.01) |
Determining Ooma's profitability involves analyzing its financial statements and using various financial metrics to determine if Ooma is a good buy. For example, gross profit margin measures Ooma's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ooma's profitability and make more informed investment decisions.
Please note, the presentation of Ooma's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ooma's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ooma's management manipulating its earnings.
Evaluate Ooma's management efficiency
Ooma Inc has return on total asset (ROA) of (0.0294) % which means that it has lost $0.0294 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1205) %, meaning that it created substantial loss on money invested by shareholders. Ooma's management efficiency ratios could be used to measure how well Ooma manages its routine affairs as well as how well it operates its assets and liabilities. As of February 16, 2025, Return On Tangible Assets is expected to decline to -0.0073. In addition to that, Return On Capital Employed is expected to decline to -0.03. At present, Ooma's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 21.3 M, whereas Total Assets are forecasted to decline to about 92 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.75 | 2.89 | |
| Tangible Book Value Per Share | 0.95 | 0.54 | |
| Enterprise Value Over EBITDA | 31.78 | 33.36 | |
| Price Book Value Ratio | 3.19 | 3.35 | |
| Enterprise Value Multiple | 31.78 | 33.36 | |
| Price Fair Value | 3.19 | 3.35 | |
| Enterprise Value | 260 M | 180.4 M |
Ooma Inc has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 0.957 |
Basic technical analysis of Ooma Stock
As of the 16th of February 2025, Ooma holds the Risk Adjusted Performance of 0.0929, coefficient of variation of 821.95, and Semi Deviation of 1.88. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Ooma, as well as the relationship between them.Ooma's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ooma insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ooma's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ooma insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ooma's Outstanding Corporate Bonds
Ooma issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ooma Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ooma bonds can be classified according to their maturity, which is the date when Ooma Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Ooma's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ooma's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0929 | |||
| Market Risk Adjusted Performance | 0.4001 | |||
| Mean Deviation | 1.68 | |||
| Semi Deviation | 1.88 | |||
| Downside Deviation | 2.04 | |||
| Coefficient Of Variation | 821.95 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.66 | |||
| Information Ratio | 0.1165 | |||
| Jensen Alpha | 0.2519 | |||
| Total Risk Alpha | 0.2492 | |||
| Sortino Ratio | 0.1231 | |||
| Treynor Ratio | 0.3901 | |||
| Maximum Drawdown | 11.4 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 3.72 | |||
| Downside Variance | 4.17 | |||
| Semi Variance | 3.54 | |||
| Expected Short fall | (1.93) | |||
| Skewness | (0.35) | |||
| Kurtosis | 0.9398 |
| Risk Adjusted Performance | 0.0929 | |||
| Market Risk Adjusted Performance | 0.4001 | |||
| Mean Deviation | 1.68 | |||
| Semi Deviation | 1.88 | |||
| Downside Deviation | 2.04 | |||
| Coefficient Of Variation | 821.95 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.66 | |||
| Information Ratio | 0.1165 | |||
| Jensen Alpha | 0.2519 | |||
| Total Risk Alpha | 0.2492 | |||
| Sortino Ratio | 0.1231 | |||
| Treynor Ratio | 0.3901 | |||
| Maximum Drawdown | 11.4 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 3.72 | |||
| Downside Variance | 4.17 | |||
| Semi Variance | 3.54 | |||
| Expected Short fall | (1.93) | |||
| Skewness | (0.35) | |||
| Kurtosis | 0.9398 |
Consider Ooma's intraday indicators
Ooma intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ooma stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ooma Corporate Filings
| 13th of February 2025 Other Reports | ViewVerify | |
F4 | 23rd of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 10th of December 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 4th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Ooma Stock media impact
Far too much social signal, news, headlines, and media speculation about Ooma that are available to investors today. That information is available publicly through Ooma media outlets and privately through word of mouth or via Ooma internal channels. However, regardless of the origin, that massive amount of Ooma data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ooma news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ooma relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ooma's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ooma alpha.
Ooma Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ooma can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ooma Corporate Directors
| Ravi Narula | Chief Financial Officer, Director | Profile | |
| Russell Mann | Non-Executive Director | Profile | |
| William Pearce | Lead Non-Management Director | Profile | |
| Peter Goettner | Non-Executive Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ooma Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Diversified Telecommunication Services space 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 Ooma. If investors know Ooma 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 Ooma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.37) | Revenue Per Share | Quarterly Revenue Growth 0.088 | Return On Assets | Return On Equity |
The market value of Ooma Inc is measured differently than its book value, which is the value of Ooma that is recorded on the company's balance sheet. Investors also form their own opinion of Ooma's value that differs from its market value or its book value, called intrinsic value, which is Ooma'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 Ooma's market value can be influenced by many factors that don't directly affect Ooma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ooma's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ooma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ooma'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.