Samsara (IOT) AI Stock Analysis

• Market Cap: $21.70B
• Dividend Yield: N/A
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 31.72%
• EPS Growth: 57.55%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 299,748,930
• 10 Day Avg. Volume: 4,014,911
• 30 Day Avg. Volume: 6,362,895
• PEG Ratio: -0.59
• Price to Book (P/B): 19.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 157.74
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 24.26
• Enterprise Value/Gross Profit: 393.33
• Enterprise Value/Ebitda: -29.95
• 1Y Price Target: $47.77
• Price Target Upside: 25.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 66 Neutral
• Price Target: $42.00 ▲(10.18%Upside)

Samsara's strong financial performance and positive earnings call sentiment are offset by bearish technical indicators and a high valuation. The company's potential for future growth is promising, but current technical trends and valuation concerns warrant caution.

Positive Factors

Customer Solutions

The opportunity for customers to consolidate more work and spending on Samsara and away from legacy disparate solutions is highlighted by the new product announcements.

Market Opportunity

The large and growing connected operations market presents a durable opportunity for Samsara.

Product Innovation

Samsara's platform offers tangible ROI and compounding value, supporting accelerated product innovation.

Negative Factors

Market Perception

The market is mischaracterizing recent macro-induced pressure as indicative of a company-specific slowdown, creating an attractive entry point.

Risks

Risks to the thesis include competition, valuation, and multiclass ownership.

Valuation Concerns

IOT shares are trading at a premium, which is considered warranted due to its fast-growing, vertical-focused software and subscription-based business model.

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 is experiencing strong revenue growth and improving cash flows. While still operating at a net loss, the company demonstrates a trajectory towards profitability with robust gross margins and efficient cash management. The balance sheet is solid with low leverage, indicating a strong position for future growth.

Income Statement

Samsara has shown impressive revenue growth, with a notable increase from $428.3M in 2022 to $1.34B in TTM (Trailing-Twelve-Months). Gross profit margin is strong at 76.6% for TTM. Despite this, the company is still operating at a net loss, although the net profit margin has improved over time, indicating a move towards profitability.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.07, indicating low leverage. The equity ratio is 54.4%, reflecting a strong balance between debt and equity. However, the company has yet to achieve a positive return on equity, as it is still in a net loss position.

Cash Flow

Samsara's cash flow has improved significantly with a positive operating cash flow of $160.6M in TTM. Free cash flow has also turned positive, indicating better cash management. The free cash flow to net income ratio is positive, suggesting efficient cash generation despite net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	-164.45M	-234.39M	-259.45M	-341.93M	-185.21M
Net Income	-154.91M	-286.73M	-247.42M	-355.02M	-210.21M
Balance Sheet
Total Assets	2.02B	1.73B	1.62B	1.57B	886.63M
Cash, Cash Equivalents and Short-Term Investments	694.80M	547.66M	689.86M	921.22M	399.89M
Total Debt	80.28M	99.49M	122.92M	144.96M	173.27M
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: 38.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 38.12 is below the 20-day moving average (MA) of 38.51, below the 50-day MA of 41.67, and below the 200-day MA of 45.05, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.51 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	79 Outperform	$24.06B	29.32	30.92%	―	6.40%	6.49%
ZS	72 Outperform	$44.12B	―	-2.68%	―	25.46%	49.20%
NET	69 Neutral	$65.56B	―	-7.35%	―	27.79%	56.19%
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
IOT	66 Neutral	$21.70B	―	-11.77%	―	31.72%	57.55%
CYBR	66 Neutral	$18.92B	1,777.39	-5.36%	―	35.12%	-191.84%
OKTA	63 Neutral	$17.14B	151.98	2.08%	―	13.51%	―

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.