OKLO

We rate Oklo Inc. (OKLO) as Avoid with a composite score of 34.0/100 at a current price of $65.06. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in momentum (51th percentile) and investment (39th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (9th percentile) and quality (20th percentile) tempers our overall conviction. We assign a No Moat rating (22/100), High uncertainty, and Poor capital allocation.

Key items to watch: valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Oklo Inc. holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 34.0/100 places it at rank #4209 in our full 7,333-stock universe. With a $16.5B market capitalization, Oklo Inc. operates at meaningful scale within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, providing competitive advantages in distribution, procurement, and customer reach.

Momentum indicators (51th percentile) are neutral regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

Margin data is not available for Oklo Inc., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.

At a current price of $65.06, Oklo Inc. is trading at a premium to fundamental value. Our value factor score of 25/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at P/B of 8.3x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a High uncertainty rating to Oklo Inc.. Key risk factors include elevated market sensitivity (beta of 2.39), below-average price stability (9th percentile), weak quality scores (20th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 2.39); below-average price stability (9th percentile); weak quality scores (20th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 9th percentile and quality factor at the 20th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (3% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Oklo Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-6.2%), weak asset returns (ROA -5.9%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Oklo Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, Oklo Inc. receives a Avoid rating with a composite score of 34.0/100 (rank #4209 of 7,333). Our quantitative framework assigns a No Moat (22/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 29/100.

Our analysis does not support a constructive view on Oklo Inc. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.