Ooma Inc. Common Stock (OOMA)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages and a margin of safety. Ooma operates in the competitive cloud communications market, selling UCaaS and phone services to businesses and consumers. Switching costs may exist, but scale is modest: 1,420 employees and a $557.0M market cap. The turnaround is real. In fiscal Q2 2027, the quarter ended 2026-07-31, revenue was $83.2M and net income $3.0M, or $0.10 per diluted share. A year earlier, in fiscal Q2 2026, the quarter ended 2025-07-31, revenue was $66.4M and net income $1.3M, or $0.04 per diluted share. For FY2026, ended 2026-01-31, revenue was $273.6M and net income $6.5M, after an FY2025 net loss of $6.9M. Financial health has improved: trailing free cash flow was $30.3M, a 5.4% FCF yield, with an 8/9 Piotroski F-score. But returns on capital remain thin: ROE was 11.72% while ROCE was only 4.06%. At the close on 2026-10-13, the price was $20.18. FairStock calculations show a P/E of 51.74, P/B of 5.78, EV/EBITDA of 20.54, and a Graham Number of $5.61, leaving a margin of safety of -259.71%. The PEG ratio of 0.37 is attractive only if growth persists. FairStock Score is 39/100. Ooma is a speculative turnaround, not a Graham bargain.

In plain English: Ooma sells cloud-based phone and communications services to small businesses and consumers. The business looks better than it did: revenue and profit are growing, and it recently returned to profit after losses. However, at the recent price of $20.18, the stock looks expensive compared with its profits and accounting value, and its overall data-based score is low.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer