OOMA

Ooma, Inc.

Fundamental data last updated:August 30, 2026

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company profile

SECTOR

Communication Services

industry

Telecommunications Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution. It also provides Ooma AirDial, a plain old telephone service; Ooma Telo basic that provides unlimited personal calling within the Unites States; Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis; PureVoice HD, a residential phone services; Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; and Ooma Telo 4G, which combines the Ooma Telo base station with the Ooma 4G Cellular Adapter and battery back-up. In addition, the company offers Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; Ooma Smart Security, a security and monitoring platform; and Talkatone mobile app. It offers its products through direct sales, distributors, retailers, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

 


VALUATION

P/E

52.97

Market Cap ($M USD)

$486.03M

Forward P/E

6.65

PEG

0.01

PRICE TO SALES

1.68

PRICE TO BOOK

5.07

EV / EBITDA

25.47

5-Year Average P/E

Free Cash Flow Yield

5.05%

DCF Value

$12.66

Graham Number

$5.12

Price to FCF

19.80

EV to FCF

19.72

Earnings Yield

1.89%

FCF Yield

5.05%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.33

Next Year EPS Growth Estimate

$2.66

Next Year Revenue Growth Estimate

$460.70M

Return on Equity (ROE)

10.01%

FREE CASH FLOW

Operating Margin

2.70%

Debt-to-Equity

0.74

Piotroski F-Score

5

Altman Z-Score

2.99

Return on Invested Capital (ROIC)

5.04%

Current Ratio

0.94

Quick Ratio

0.69

Net Debt to EBITDA

-0.10

Interest Coverage

-23.14

Gross Profit margin

61.34%

FCF PER SHARE

$0.89

REVENUE PER SHARE

$10.54

Gainseekers Quantitative Analysis

Summary

Ooma, Inc. appears to be mispriced by the market when considering its DCF Value and Graham Number, both of which suggest a lower intrinsic value than recent pricing indicated. The Forward P/E of 7.26 is a stark contrast to its current P/E of 82.38, hinting at expected explosive earnings growth. However, the Earnings Yield of 1.21% is underwhelming, raising questions about immediate returns. The Altman Z-score of 2.78 suggests moderate financial health, indicating some risk but not imminent distress. Overall, the stock’s valuation metrics paint a picture of a company priced for future growth rather than current fundamentals.

AI Exposure / Tech Reliance

Operating within the Telecommunications Services industry, Ooma is strategically positioned to leverage AI and tech advancements. As communication services increasingly integrate AI, Ooma's adaptability will be crucial for maintaining competitive edge. Its ability to innovate in a tech-driven landscape will determine its resilience and future growth.

The Bull Case

For the value or GARP investor, Ooma offers intriguing potential. The ROIC of 2.73% and FCF Yield of 4.16% suggest efficient capital use and cash generation. A Piotroski F-Score of 5 indicates moderate financial strength, while a Gross Profit Margin of 61.13% underscores strong pricing power. These metrics collectively suggest a company with the potential for robust capital efficiency and profitability.

The Bear Case

Despite some strengths, Ooma faces significant structural risks. The Price/Book ratio of 5.73 and Price/Sales of 1.94 indicate a potentially overvalued stock, especially when trading near its 52-week high. The Operating Margin of 1.56% is razor-thin, raising concerns about profitability. Additionally, the stock's technical overextension could lead to volatility, making it a risky bet for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$23.67

Institutional Ownership %

1-Year Beta

1.20

Insider Buying % (6 Mo)

Distance to 52-Week High

24.14%

Distance to 52-Week Low

44.64%

EARNINGS SURPRISE %

9.38%

50-DAY SMA

$16.31

200-DAY SMA

$13.02

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.