Ooma Inc (OOMA) Stock Analysis
Verdict: HOLD
Ooma's shift to positive FCF and consistent earnings beats provides a floor, but high valuation vs peers and insider selling cap upside.
Investment score: 64/100
Analysis as of
Is Ooma Inc stock worth reviewing? The TradeMates thesis
The TradeMates model views OOMA as a fundamentally improving business with high price-perfection risk. The combination of strong cash flow scaling and recent insider selling makes it a 'Hold' until technical support near $14 is retested.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 78/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Ooma Inc opportunities and risks
What speaks for OOMA
- Free Cash Flow Scaling
What speaks against OOMA
- Heavy Insider Selling at Current Levels
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| OOMA | 50.8x | 1.6x | 19.0x | 61.3% | 3.2% | 5.3% |
| PAR | n/a | 1.2x | n/a | 39.4% | -16.0% | -5.0% |
| CRNC | n/a | 1.7x | 15.6x | 78.3% | -6.5% | 14.7% |
| RWWI | 8.4x | 2.4x | 6.0x | 72.5% | 28.3% | 5.3% |
| WEAV | n/a | 1.8x | n/a | 72.3% | -10.1% | 2.1% |
| API | 38.3x | 2.8x | 28.2x | 65.2% | 7.0% | -4.1% |
| Peer median | n/a | 1.8x | 6.0x | 72.3% | -6.5% | 2.1% |
Frequently asked questions about Ooma Inc (OOMA)
Is OOMA stock a good investment?
The TradeMates model rates Ooma Inc as HOLD with an investment score of 64/100. The TradeMates model views OOMA as a fundamentally improving business with high price-perfection risk. The combination of strong cash flow scaling and recent insider selling makes it a 'Hold' until technical support near $14 is retested. This is algorithmic model output, not personal investment advice.
Is OOMA stock a buy?
The TradeMates model verdict for OOMA is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.