Samsara (IOT) AI Stock Analysis

• Market Cap: $23.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 33.26%
• EPS Growth: 47.73%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 299,733,300
• 10 Day Avg. Volume: 3,161,428
• 30 Day Avg. Volume: 4,670,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 29.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.82
• Price Target Upside: 20.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Samsara's overall stock score reflects solid financial performance and positive earnings call sentiment, highlighting strong revenue growth and operational achievements. However, technical indicators suggest a bearish trend, and valuation metrics are weak due to continued unprofitability. These factors combined result in a moderate overall score.

Positive Factors

Growth Opportunities

There are large expansion opportunities within its base, with multiple vectors to support growth and drive operating leverage.

Product Adoption

Multi-product adoption is leading to larger customer engagements, with the company adding 203 customers to the >$100K ARR cohort, marking the largest quarterly increase in its history.

Risk/Reward Profile

The recent pullback in the shares creates a more attractive risk/reward for a high-quality company.

Negative Factors

ARR Growth Concerns

A smaller beat on annual recurring revenue and a deceleration in net new ARR growth to 10% YoY could raise concerns, especially with the stock trading at a high valuation.

Growth Concerns

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

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 the sale of its IoT hardware products and the subscription fees for its cloud-based software services. The company offers an integrated platform that combines IoT devices, such as sensors and cameras, with cloud-based software, which customers subscribe to on a recurring basis. This subscription model provides a steady revenue stream, as businesses rely on Samsara's solutions for continuous operational monitoring and data analytics. Additionally, Samsara may engage in strategic partnerships to expand its market reach and enhance its product offerings, further contributing to its revenue.

Samsara Financial Statement Overview

Summary

Samsara demonstrates a positive growth trajectory in revenue and cash flow, with improving operational efficiencies. While profitability metrics remain negative, there is clear progress in reducing losses and enhancing cash flow. The balance sheet is stable with low financial leverage, positioning the company well for future growth opportunities in the software industry.

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: 41.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 41.4 is above the 20-day moving average (MA) of 38.93, above the 50-day MA of 39.41, and below the 200-day MA of 45.10, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, 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	77 Outperform	$23.58B	29.07	30.92%	―	6.40%	6.49%
ZS	74 Outperform	$36.07B	―	-1.21%	―	27.77%	89.39%
CYBR	66 Neutral	$17.67B	1,777.39	-5.91%	―	33.10%	-20.31%
IOT	64 Neutral	$23.56B	―	-15.61%	―	33.26%	47.73%
OKTA	61 Neutral	$20.32B	1,997.78	0.46%	―	15.33%	―
NET	60 Neutral	$42.44B	―	-8.71%	―	28.76%	58.13%
Sector *	60 Neutral	$10.78B	10.47	-6.71%	2.99%	7.58%	-12.08%

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.