Okta, Inc. OKTA
Strong Cybersecurity sector · Identity and login security — the front door for enterprise apps.
Okta, Inc. (OKTA) is an established Cybersecurity company, graded Strong on FrontierLab's evidence-based quality rubric (data as of 2026-08-21). Revenue grew 11.7% year-over-year at a 77.4% gross margin. Gross-profits-to-assets is 0.25; Rule of 40 is 17.4. Net share issuance -2.2% YoY (buying back shares). No risk flags are currently noted. Analyst mix: 40 buy / 11 hold / 1 sell.
These sentences are generated from the day's data by deterministic templates.
Key quality signals
| Revenue growth (YoY) | 11.7% |
|---|---|
| Gross margin | 77.4% |
| Gross profits / assets | 0.25 |
| Rule of 40 | 17.4 |
| Net margin | 5.7% |
| Cash runway (months) | — |
| PEG | 1.1 |
| Price / sales | 7.4 |
Quality checklist
Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.
- ~ Revenue growth — 11.7% (pass ≥ 20%)
- ~ Gross profits / assets — 0.25 (pass ≥ 0.33)
- · Rule of 40 — 17.4 (context — graded for software only)
- ✓ Gross margin — 77.4% (pass ≥ 72% · Cybersecurity)
- ✓ Cash generation
- ✓ Share dilution — -2.2%
- ~ Competitive moat — Narrow
- ✓ Market size (TAM) — Large
Grade history
Graded Strong since 2026-06-10 — no grade changes recorded yet.
How have Strong-graded names performed?
The forward returns of all Strong-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.
| Window | Forward record vs the S&P | Median |
|---|---|---|
| ~1 month | 59% of Strong-graded names beat the S&P over 21 sessions (95% CI 41–74%, N=29). | Median excess vs the S&P was +4.2%. |
| ~3 months | building — 13 more sessions needed | |
| ~6 months | building — 76 more sessions needed | |
Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →
How it compares
Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.
Fundamentals
| Market cap | $22.29B |
|---|---|
| Stage | Established |
| Share issuance (YoY) | -2.2% · buying back shares |
| Moat | Narrow |
| TAM | LARGE |
| P/E (trailing) | 97.2 |
| EPS (trailing) | $1.38 |
| Burn multiple | — |
| Gross-margin trend (pts) | 0.7 |
| Cash / assets | 0.28 |
| Accruals (%) | -7.2% |
| Net debt / EBITDA | -1 |
| Statements as of | Q1 FY2027 · filed 2026-05-29 |
Momentum context — describes the past, not a signal
Low reached Apr 10, 2026 · high reached Aug 13, 2026 — by daily close.
| Price | $134.16 (as of 2026-08-20) |
|---|---|
| Last session move | — |
| % off 52-wk high | -14.5% |
| RSI (14) | 42 |
| Relative volume | 1.1× |
Insider activity (90 days)
| Cluster buyers | 0 |
|---|---|
| Sellers | 4 |
Insider selling is routine diversification, not a bearish signal.
Analyst mix
| Strong buy | 12 |
|---|---|
| Buy | 28 |
| Hold | 11 |
| Sell | 1 |
| Strong sell | 0 |
▲ Analyst view improving — net +2 buy ratings over ~4 weeks (per aggregated analyst ratings)
Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.
AI take — daily, AI-generated
AI leans cautious
Solid margins (77.4%) and shrinking dilution are positives, but slowest growth (11.7%) and lowest GP/A (0.25) among the group, plus no recent catalysts, make this a mature holding rather than a growth opportunity.
Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.
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Data as of 2026-08-21 08:12 (end-of-day). How grades are computed →