# Ooma Inc. (OOMA) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $23.20, market value $640 million.

## Valuation
- **P/E (trailing): 59.5×** (5-yr avg 51.1×, 3-yr avg 51.1×). Ooma Inc. trades at 59.5× trailing earnings, close to its own five-year average of 51.1×. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 15.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.08**. A PEG of 0.08 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 6.7×**. The shares trade at 6.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 43.0×**. Enterprise value is 43.0× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.7%** (5-yr avg 3.1%). Free cash flow equals 4.7% of the market value, above its five-year average of 3.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.7%**. The inverse of the P/E: 1.7% of the price is earned each year.

## Profitability
- **Gross margin: 61.5%**. Ooma Inc. keeps 61.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 3.6%**. 3.6% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.4%**. 2.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.0%**. 7.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.6%**. Return on all capital, debt included, is 6.6%.
- **Return on assets: 4.8%**. Each dollar of assets produces 4.8% of profit.

## Growth
- **Revenue growth (1 yr): 6.5%** (3-yr 8.2%/yr, 5-yr 10.1%/yr). Revenue grew 6.5% over the last year, against 10.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 188.5%**. Earnings per share rose 188.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 83.7%/yr**. Free cash flow has compounded at 83.7% a year over three years.

## Financial health
- **Debt to equity: 0.62**. Debt is 0.62 times equity, moderate leverage.
- **Net debt / EBITDA: 2.4×**. It would take 2.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 4.69**. A Z-score of 4.69 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Ooma Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (5 analysts). 5 analysts cover Ooma Inc.; the consensus is strong_buy, with an average price target of $26.60 (+15% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 78.5%** (YTD 97.8%, 3-mo 35.4%). The shares are up 78.5% over twelve months including dividends.
- **From 52-week high: -11.4%** (136.9% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.74** (volatility 45%). Beta of 0.74 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=OOMA · Page: https://foliofundamentals.com/stocks/ooma

Not investment advice.