Samsara (IOT) AI Stock Analysis

• Market Cap: $26.90B
• Dividend Yield: N/A
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 31.72%
• EPS Growth: 57.55%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 299,748,930
• 10 Day Avg. Volume: 3,762,398
• 30 Day Avg. Volume: 2,844,622
• PEG Ratio: -1.74
• Price to Book (P/B): 22.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 221.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $47.50
• Price Target Upside: 5.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 71 Outperform
• Price Target: $50.00 ▲(10.86%Upside)

Samsara's overall stock score of 71 reflects strong financial performance, particularly in revenue growth and cash flow improvements, coupled with positive sentiment from the latest earnings call. However, challenges in profitability and valuation, along with mixed technical indicators, temper the overall outlook.

Positive Factors

Customer Growth

The company added 145 customers to the >$100K ARR cohort, up 35% YoY, bringing the total to 2,638 customers with >$100K in ARR.

Earnings

Samsara reported another strong quarter with results ahead of expectations while prudently raising guidance on a constant-currency basis.

Market Position

Samsara’s rare combination of sustainable best-in-class revenue growth and ongoing margin improvement will drive outperformance to the market.

Negative Factors

Growth Challenges

Incremental macro weakness could more impactfully affect growth metrics, including potentially dampening momentum in international markets.

Macro Environment

Samsara's ability to plow through tough macro headwinds fell short this quarter, as CFO Dominic Phillips noted, 'instances of elongated sales cycles on some transactions in the period following Liberation Day in April'.

Stock Price Volatility

Shares are indicated off 12%, likely due to elevated expectations into earnings.

Samsara Business Overview & Revenue Model

Company Description

Samsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility. It serves customers across a range of industries, including transportation and logistics, construction, field services, utilities and energy, government, healthcare and education, manufacturing, wholesale and retail trade, and food and beverage. The company was incorporated in 2015 and is based in San Francisco, California.

How the Company Makes Money

Samsara generates revenue primarily through a subscription-based model. The company charges customers for access to its IoT platform, which includes software licenses, and ongoing support and maintenance services. Additionally, Samsara sells IoT hardware devices, such as sensors and cameras, which are integrated into its platform to collect data. Key revenue streams include subscriptions to fleet management and industrial monitoring services, as well as sales of the accompanying hardware. Samsara also partners with various industry leaders to enhance its platform's capabilities and expand its market reach, contributing to its revenue growth.

Samsara Financial Statement Overview

Summary

Samsara shows strong revenue growth and improving cash flow, with robust gross profit margins. Despite ongoing unprofitability, there is progress in reducing losses and enhancing cash flow. The balance sheet is stable with low financial leverage.

Income Statement

Samsara has shown strong revenue growth, with a substantial increase of approximately 33% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin is robust at 76.1% for TTM, reflecting efficient cost management. However, the company remains unprofitable with a negative net profit margin of -12.4%, though there's been an improvement from past periods. The EBIT and EBITDA margins remain negative, indicating ongoing operational challenges.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 52.8% and a solid return on equity improvement to -14.5% in TTM, which, while negative, shows progress. The debt-to-equity ratio is relatively low at 0.08, indicating low financial leverage. However, the negative net income impacts overall profitability.

Cash Flow

Samsara's cash flow position is strengthening, evidenced by positive operating cash flow of $131.7 million in TTM. The free cash flow has improved significantly, shifting from negative to a positive $111.5 million. The operating cash flow to net income ratio indicates better cash management, though free cash flow generation remains a challenge.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.25B	937.38M	652.54M	428.35M	249.91M
	Gross Profit
950.88M	690.35M	469.89M	303.86M	174.51M
	EBIT
-189.97M	-323.35M	-258.40M	-352.32M	-202.71M
	EBITDA
-164.45M	-234.39M	-259.45M	-341.93M	-185.21M
	Net Income Common Stockholders
-154.91M	-286.73M	-247.42M	-355.02M	-210.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
694.80M	547.66M	689.86M	921.22M	399.89M
	Total Assets
2.02B	1.73B	1.62B	1.57B	886.63M
	Total Debt
80.28M	99.49M	122.92M	144.96M	173.27M
	Net Debt
-147.30M	-36.05M	-77.75M	-776.26M	-226.61M
	Total Liabilities
955.11M	819.70M	678.99M	578.98M	1.42B
	Stockholders Equity
1.07B	915.15M	938.02M	988.95M	-532.80M
Cash Flow		Free Cash Flow
111.48M	-22.77M	-136.26M	-190.83M	-203.87M
	Operating Cash Flow
131.66M	-11.81M	-103.02M	-171.48M	-171.77M
	Investing Cash Flow
-66.62M	-78.69M	-631.85M	-20.04M	-32.20M
	Financing Cash Flow
27.10M	21.00M	14.21M	701.64M	401.97M

Samsara Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOT, the sentiment is Neutral. The current price of 45.1 is below the 20-day moving average (MA) of 46.33, above the 50-day MA of 41.58, and below the 200-day MA of 46.00, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 62.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IOT.

Samsara Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	82 Outperform	$25.05B	30.83	30.92%	―	6.40%	6.49%
NET	74 Outperform	$61.12B	―	-7.35%	―	27.79%	56.19%
ZS	74 Outperform	$46.85B	―	-2.68%	―	25.46%	49.20%
CYBR	73 Outperform	$19.72B	1,777.39	-5.36%	―	35.12%	-191.84%
IOT	71 Outperform	$26.90B	―	-11.77%	―	31.72%	57.55%
OKTA	65 Neutral	$18.24B	163.14	2.08%	―	13.51%	―
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%

Samsara Corporate Events

Samsara Announces Retirement of Chief Accounting Officer

On March 25, 2025, Samsara Inc. announced that Andrew Munk, the Chief Accounting Officer, will retire effective April 8, 2025. His departure is not due to any disagreements with the company. Dominic Phillips, the Chief Financial Officer, will temporarily take over Munk’s responsibilities starting April 9, 2025, while the company searches for a permanent replacement.