Samsara (IOT) AI Stock Analysis

• Market Cap: $22.55B
• Dividend Yield: N/A
• Average Volume (3M): 6.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: 30.32%
• EPS Growth: 67.92%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.12
• Shares Outstanding: 348,744,300
• 10 Day Avg. Volume: 7,366,419
• 30 Day Avg. Volume: 6,743,046
• PEG Ratio: 3.84
• Price to Book (P/B): 26.80
• Price to Sales (P/S): 22.93
• P/FCF Ratio: 257.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 13.99
• Enterprise Value/Gross Profit: 18.20
• Enterprise Value/Ebitda: -2.04K
• 1Y Price Target: $48.00
• Price Target Upside: 24.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 70 Outperform
• Price Target: $41.00 ▲(6.74% Upside)

Samsara's strong financial performance, particularly in revenue growth and cash flow improvements, is a major positive factor. The positive sentiment from the earnings call further supports the stock's outlook. However, the negative P/E ratio and profitability challenges weigh on the valuation, while technical indicators suggest neutral momentum.

Positive Factors

Revenue Growth

Samsara's strong ARR growth indicates robust demand for its IoT solutions, enhancing its market position and supporting long-term revenue expansion.

Innovative Product Launches

Launching innovative products strengthens Samsara's competitive edge, diversifies its offerings, and meets evolving customer needs, driving sustainable growth.

Strong Customer Base

Increasing large customer acquisitions enhances revenue stability and indicates strong market acceptance of Samsara's solutions, supporting future growth.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profit margins highlight profitability challenges, which may impact Samsara's ability to reinvest and grow sustainably.

Negative Return on Equity

Negative ROE indicates inefficiencies in capital use, potentially affecting investor confidence and Samsara's capacity to fund future growth initiatives.

Tariff and Regulatory Uncertainty

Regulatory uncertainties can disrupt Samsara's operations and customer strategies, introducing variability and risk to its financial performance.

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 primarily generates revenue through a subscription-based model, where customers pay for access to its IoT platform and services. Key revenue streams include monthly or annual subscriptions for hardware devices, software services, and data analytics. The company offers different pricing tiers, allowing businesses of varying sizes to select packages that suit their operational needs. Additionally, Samsara benefits from selling its hardware products, such as GPS tracking devices and sensors, which are essential for its service offerings. Significant partnerships with industry leaders in transportation and logistics also contribute to its earnings, providing expanded market reach and collaborative service offerings.

Samsara Financial Statement Overview

Summary

Samsara is showing strong revenue growth and improving cash flow metrics, which are positive indicators for future performance. However, the company continues to face profitability challenges, as evidenced by negative net income and margins. The balance sheet is stable with low leverage, but the negative return on equity highlights the need for better capital efficiency.

Income Statement

Samsara has shown impressive revenue growth, with a TTM growth rate of 6.84% and a strong gross profit margin of 76.87%. However, the company is still operating at a net loss, with a net profit margin of -6.16% and negative EBIT and EBITDA margins, indicating ongoing profitability challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.06, reflecting conservative leverage. However, the return on equity is negative at -7.97%, suggesting inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures.

Cash Flow

Samsara's cash flow position is strengthening, with a free cash flow growth rate of 22.42% and a solid free cash flow to net income ratio of 0.88. The operating cash flow to net income ratio is 0.24, indicating improving cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.43B	1.25B	937.38M	652.54M	428.35M	249.91M
Gross Profit	1.10B	950.88M	690.35M	469.89M	303.86M	174.51M
EBITDA	-9.77M	-164.45M	-171.08M	-167.10M	-304.39M	-173.01M
Net Income	-87.93M	-154.91M	-286.73M	-247.42M	-355.02M	-210.21M
Balance Sheet
Total Assets	2.21B	2.02B	1.73B	1.62B	1.57B	886.63M
Cash, Cash Equivalents and Short-Term Investments	701.80M	694.80M	547.66M	689.86M	921.22M	399.89M
Total Debt	77.18M	80.28M	99.49M	122.92M	144.96M	173.27M
Total Liabilities	992.33M	955.11M	819.70M	678.99M	578.98M	1.42B
Stockholders Equity	1.21B	1.07B	915.15M	938.02M	988.95M	-532.80M
Cash Flow
Free Cash Flow	169.63M	111.48M	-22.77M	-136.26M	-190.83M	-203.87M
Operating Cash Flow	192.65M	131.66M	-11.81M	-103.02M	-171.48M	-171.77M
Investing Cash Flow	-119.83M	-66.62M	-78.69M	-631.85M	-20.04M	-32.20M
Financing Cash Flow	29.16M	27.10M	21.00M	14.21M	701.64M	401.97M

Samsara Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.41
• 50DMA: Positive
• 100DMA: Negative
• 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 Negative. The current price of 38.41 is above the 20-day moving average (MA) of 38.28, above the 50-day MA of 36.84, and below the 200-day MA of 42.09, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOT.

Samsara Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	80 Outperform	134.25B	125.43	14.49%	―	14.87%	-57.43%
IOT	70 Outperform	$22.55B	―	-8.07%	―	30.32%	67.92%
NET	70 Neutral	75.82B	-642.75	-9.44%	―	27.32%	-11.94%
FTNT	67 Neutral	64.06B	33.36	94.14%	―	14.46%	48.06%
ZS	67 Neutral	45.02B	-1,060.48	-2.31%	―	23.31%	31.04%
CRWD	66 Neutral	119.54B	-398.07	-7.91%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Samsara Corporate Events

Samsara Appoints Gary Steele to Board of Directors

On August 16, 2025, Samsara Inc. announced the appointment of Gary Steele to its Board of Directors, effective September 1, 2025. Steele, with over 30 years of experience in software, cybersecurity, and AI innovation, is expected to bring significant value to Samsara’s ongoing product innovation and operational excellence. His previous roles include CEO positions at Shield AI, Splunk Inc., and Proofpoint, Inc. Steele’s appointment aligns with Samsara’s commitment to expanding its product offerings and driving multi-product adoption, reinforcing its position as a leader in connected operations.

Samsara Stockholders Approve Key Governance Proposals

On July 29, 2025, Samsara Inc. held its annual stockholders meeting where three key proposals were voted on. The stockholders elected nine directors to the board, ratified Deloitte & Touche LLP as the independent auditors for the fiscal year ending January 31, 2026, and approved the compensation for the company’s named executive officers. These decisions are pivotal for Samsara’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.