Okta, Inc. (OKTA) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 20, 2026
Okta, Inc. (OKTA)
A forensic read on Okta, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
12.3
Distress distance
Clean
Earnings quality
3
Forensic signals
107.7
P / E (ttm)
3.4%
ROE
$35.9B
Market cap
11.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Okta, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 12.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
2.1%
FY2026
Return on invested capital.Return on invested capital is 2.1% in the latest fiscal year and rising across FY2022–FY2026 from -8% — well below the ~10% cost of capital we hold this sector to, and it has been across FY2018–FY2026, so reinvested dollars have not been earning their keep. The capital base behind it came down -18% across FY2022–FY2026, from $7.7B to $6.3B, so this is a return struck on a smaller base rather than a record of money put to work.
+4.3%/yr
FY2023–FY2026
Share-count dilution.Diluted share count changed +13% over the last 3 years to FY2026 (+4.3%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~4.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~12%.
19% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 19% of revenue and 62% of free cash flow in FY2026 — about $3.03 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 4.3% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$2.92B
Revenue Growth YoY+11.8%
Revenue CAGR (3yr)+16.2%
Net Margin8.1%
Free Cash Flow$875.0M
Return on Equity3.4%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Okta, Inc.'s actual 10-K/10-Q/8-K filings?