MeritValue

OOMA INC

OOMAdata completeness 100%13 fiscal years on file
The thesis, from the filings

OOMA INC earns about -4% on invested capital, below its ~9% cost of capital, but has diluted owners by 20% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $22.03 and $41.42 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$192.3M1$216.2M2$236.7M3$256.9M3$273.6M3
Net income−$1.75M4−$3.66M5−$835,0006−$6.9M6$6.46M6
Operating cash flow$6.66M7$8.77M8$12.3M9$26.6M9$27.7M9
Capital expenditure$4.2M10$5.21M11$6.16M12$6.45M12$5.59M12
Free cash flow (derived)$2.45M7$3.56M8$6.11M9$20.2M9$22.1M9
Total debt——$16M13$013$57.9M14
Cash & equivalents$19.7M15$24.1M16$17.5M17$17.9M18$20.1M18
Diluted shares23.5M24.5M25.6M26.7M28.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$33.05
your share of equity
Profit it earned you last year
$2.3
Free cash flow it threw off
$7.86
Debt you’d be carrying
$20.59

10 shares is a claim on $33.05 of net worth that earned you $2.3 and generated $7.86 of cash last year, against $20.59 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-4% avg · 5y
FY22 -4%FY23 -11%FY24 -3%FY25 -7%FY26 3%

It earned about -4% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+20% shares · 5y

Share count is up 20% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 262% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $22.03 and $41.42 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$41.42
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$20.2M
DCF · Growth Exit 5Y
$22.03
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$20.2M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$4.14
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $22.03
The three cases
Bear0.0%$8.9
Base20.0%$22.03
Bull20.0%$22.03

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-31 · accession 0000950170-24-040394 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-01-31 · accession 0000950170-25-048692 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-01-31 · accession 0001327688-26-000009 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2022-01-31 · accession 0000950170-24-040394 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-31 · accession 0000950170-25-048692 (NetIncomeLoss)
  6. 10-K · period ending 2024-01-31 · accession 0001327688-26-000009 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-31 · accession 0000950170-24-040394 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-31 · accession 0000950170-25-048692 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-01-31 · accession 0001327688-26-000009 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-31 · accession 0000950170-24-040394 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-31 · accession 0000950170-25-048692 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-01-31 · accession 0001327688-26-000009 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2024-01-31 · accession 0000950170-25-048692 (LongTermDebt)
  14. 10-K · period ending 2026-01-31 · accession 0001327688-26-000009 (LongTermDebt)
  15. 10-K · period ending 2022-01-31 · accession 0000950170-23-012210 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-01-31 · accession 0000950170-24-040394 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-01-31 · accession 0000950170-25-048692 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2025-01-31 · accession 0001327688-26-000009 (CashAndCashEquivalentsAtCarryingValue)