Last Updated: 18 Sep 2024
Executive Summary
Ooma Inc. (OOMA) is a provider of cloud-based business and consumer communication services. The company's latest stock price is $11.29, with a market capitalization of $303.4 million. OOMA has a PEGRatio of 1.82, indicating potential for future growth. However, the company's profitability metrics are currently negative, with a Profit Margin of -0.0204 and a Return on Assets of -0.0242.
Company Overview
Ooma provides a range of communication services, including voice, video, and messaging. The company's target market includes small businesses and residential customers. Ooma's cloud-based platform allows customers to access its services from any device with an internet connection. The company has a strong presence in the United States and Canada, with plans to expand internationally.
Fundamental Analysis
OOMA's revenue has grown by 9.9% year-over-year to $248.2 million. However, the company's profitability metrics have declined in recent quarters. OOMA's gross profit margin has decreased from 59.4% to 55.5% over the past year. The company's operating margin has also declined from -0.012 to -0.0234 over the same period.
Technical Analysis
OOMA's stock price has been trending sideways in recent months. The stock is currently trading above its 50-day moving average of $9.71 but below its 200-day moving average of $9.32. The stock's relative strength index (RSI) is currently at 49.5, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
OOMA's short-term outlook is mixed. The company's revenue growth is expected to continue, but its profitability metrics are likely to remain under pressure. The stock's technical indicators suggest that the stock could continue to trade sideways in the near term.
Long Term Outlook
OOMA's long-term outlook is more positive. The company's cloud-based platform gives it a competitive advantage in the growing market for business and consumer communication services. OOMA's international expansion plans could also provide a significant growth opportunity for the company.
Analyst Recommendations
Analysts have a mixed view on OOMA. One analyst has a Strong Buy rating on the stock, five analysts have a Buy rating, one analyst has a Hold rating, and no analysts have a Sell or Strong Sell rating. The average analyst target price is $14.80, which represents a potential upside of 31.1% from the current price.
