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SentinelOne (S)
NYSE:S
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SentinelOne
(NYSE:S)
64Neutral
Positive Factors
International Growth
There was good momentum from international markets with a 36% year-over-year increase in revenue.
Product Adoption
With newer solutions like Singularity Cloud and Purple AI seeing rapid adoption, SentinelOne is diversifying its growth story while demonstrating strong operational leverage, having flipped into profitability on an FCF basis.
Technology Position
S continues to have faith in its strong technology position in Endpoint and an emerging Lenovo opportunity.
Negative Factors
Guidance and Expectations
The focal point of the quarter was somewhat weaker than expected guidance for revenue and nnARR.
Legacy Product Impact
The retirement of its legacy Deception solution is driving up to $10M in churn, with nearly half impacting Q1.
Profitability and Valuation
The low profitability level is noted, with an operating margin significantly lower than a competitor at similar revenue levels.
SentinelOne (S) vs. S&P 500 (SPY)
Market Cap
$5.57B
Dividend YieldN/A
Average Volume (3M)6.46M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth32.25%
EPS Growth20.56%
CountryUS
Employees2,800
SectorTechnology
Sector Strength40
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.92
Shares Outstanding315,457,760
10 Day Avg. Volume4,459,408
30 Day Avg. Volume6,460,211
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.04
Price to Cash Flow (P/CF)-215.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.46Price Target Upside44.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering28
SentinelOne Business Overview & Revenue Model
Company DescriptionSentinelOne, Inc. operates as a cybersecurity provider in the United States and internationally. The company's Extended Detection and Response (XDR) data stack that fuses together the data, access, control, and integration planes of endpoint protection platform, endpoint detection and response, cloud workload protection platform, and IoT security into a centralized platform. Its Singularity XDR Platform delivers an artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across an organization's endpoints; and cloud workloads, which enables seamless and automatic protection against a spectrum of cyber threats. The company was formerly known as Sentinel Labs, Inc. and changed its name to SentinelOne, Inc. in March 2021. SentinelOne, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.
How the Company Makes MoneySentinelOne generates revenue primarily through the sale of its cybersecurity software solutions. The company's revenue model is based on subscription fees that clients pay for access to its endpoint protection platforms. SentinelOne offers different pricing tiers based on the level of service and protection required, allowing it to cater to both small businesses and large enterprises. Additionally, SentinelOne has established partnerships with managed security service providers (MSSPs) and other technology companies, which help expand its market reach and contribute to its revenue growth.
SentinelOne Financial Statement Overview
Summary
SentinelOne shows strong revenue growth and solid gross margins, indicating efficient top-line management. The balance sheet is strong with no debt and high equity, but challenges persist in profitability and return on equity. Cash flow trends are promising, with a significant improvement in free cash flow.Income Statement
SentinelOne demonstrates solid revenue growth with a 32.23% increase in TTM compared to the previous year. Gross profit margin is strong at 74.28%, indicating efficient management of production costs. However, persistent negative net profit and EBIT margins highlight ongoing challenges in achieving profitability.70
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 69.36%, indicating a stable financial structure. With no total debt reported in the TTM, the debt-to-equity ratio is favorable. However, the negative ROE of -17.27% points to inefficiencies in generating returns for shareholders.65
Positive
Cash Flow
A significant turnaround in free cash flow from negative to positive (136.56% growth) reflects improved cash management strategies. The operating cash flow to net income ratio of 0.12 suggests room for improvement in converting earnings to cash. Overall, cash flow trends are promising.72
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 821.46M | 621.15M | 422.18M | 204.80M | 93.06M | Gross Profit |
| 610.36M | 441.87M | 278.00M | 123.12M | 53.72M | EBIT |
| -329.36M | -378.42M | -402.58M | -267.23M | -115.52M | EBITDA |
| -238.67M | -292.71M | -349.18M | -258.54M | -109.79M | Net Income Common Stockholders |
| -288.44M | -338.69M | -378.68M | -271.10M | -117.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 721.90M | 925.96M | 623.52M | 1.67B | 395.84M | Total Assets |
| 2.41B | 2.32B | 2.26B | 2.04B | 520.56M | Total Debt |
| 0.00 | 22.93M | 26.97M | 29.08M | 42.09M | Net Debt |
| -186.57M | -233.72M | -110.97M | -1.64B | -353.38M | Total Liabilities |
| 737.38M | 727.36M | 602.21M | 391.39M | 841.10M | Stockholders Equity |
| 1.67B | 1.59B | 1.66B | 1.65B | -320.54M |
| Cash Flow | Free Cash Flow | |||
| 6.59M | -87.14M | -212.10M | -105.88M | -72.83M | Operating Cash Flow |
| 33.73M | -68.37M | -193.29M | -95.59M | -66.57M | Investing Cash Flow |
| -218.40M | 140.59M | -1.31B | -19.74M | -6.26M | Financing Cash Flow |
| 55.88M | 47.46M | 36.31M | 1.39B | 423.98M |
SentinelOne Technical Analysis
Negative
16.91
Price Trends
21.19
Negative
22.91
Negative
23.03
Negative
Market Momentum
-0.67
Negative
38.78
Neutral
25.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For S, the sentiment is Negative. The current price of 16.91 is below the 20-day moving average (MA) of 18.90, below the 50-day MA of 21.19, and below the 200-day MA of 23.03, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for S.
SentinelOne Risk Analysis
SentinelOne disclosed 56 risk factors in its most recent earnings report. SentinelOne reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SentinelOne Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $101.68B | 86.76 | 23.38% | ― | 13.86% | -46.44% | |
73 Outperform | $79.72B | 721.64 | -0.69% | ― | 29.39% | -119.62% | |
70 Outperform | $65.14B | 37.48 | 338.74% | ― | 12.27% | 54.69% | |
67 Neutral | $15.16B | 1,777.39 | -5.91% | ― | 33.10% | -20.31% | |
64 Neutral | $5.57B | ― | -17.68% | ― | 32.25% | 20.56% | |
63 Neutral | $3.86B | ― | -9.73% | ― | 12.68% | 54.80% | |
57 Neutral | $18.54B | 9.84 | -14.39% | 2.71% | 5.07% | -23.64% |
* Technology Sector Average
Performance Comparison
S
SentinelOne
16.91
-6.00
-26.19%
FTNT
Fortinet
84.71
16.32
23.86%
PANW
Palo Alto Networks
153.57
19.28
14.36%
CYBR
CyberArk Software
306.46
47.19
18.20%
TENB
Tenable Holdings
32.05
-16.36
-33.79%
CRWD
CrowdStrike Holdings
321.63
7.90
2.52%
SentinelOne Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -12.38% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
SentinelOne delivered strong financial performance and customer growth, achieving profitability milestones and expanding its platform solutions. However, the decision to retire a legacy solution and ongoing macroeconomic uncertainties present challenges. Overall, the company shows confidence in its growth trajectory and strategic focus on AI and cloud security.Highlights
Exceeding Expectations in Q4 FY25
SentinelOne ended the fiscal year 2025 with a strong fourth quarter, exceeding expectations across all guided metrics and achieving over 30% top-line growth, while operating margin expanded by over 15 percentage points.
Record Customer Growth
The company set a new customer growth record and scaled its emerging platform solutions, with non-endpoint solutions crossing 50% of full-year bookings.
First Full Year of Profitability
Achieved significant profitability milestones, including the first quarter of positive operating income in Q4, first full year of positive net income and earnings per share, and first full year of positive free cash flow.
AI and Cloud Security Solutions Growth
Record bookings contribution from data, cloud, and AI security solutions in Q4, with data and AI being the fastest-growing solutions.
Industry Recognition and Product Innovation
Achieved 100% detection in the latest MITRE ATT&CK Evaluations and introduced Purple AI, a generative AI capability, across every platform solution by default.
Lowlights
Retirement of Legacy Deception Solution
The strategic decision to retire the legacy deception solution is expected to result in up to $10 million of churn for fiscal year 2026, impacting net new ARR and causing a headwind.
Macroeconomic and Federal Spending Uncertainties
Economic and political uncertainties continue to impact budgets, timing, and business decisions, with federal spending uncertainty being a particular concern.
Flat Net New ARR Growth in Q4 FY25
The net new ARR was flat year-over-year in Q4 FY25, impacted by churn related to the retirement of the legacy deception solution.
Company Guidance
During the SentinelOne Q4 Fiscal Year 2025 earnings call, the company provided guidance for the upcoming fiscal year 2026, projecting revenue growth of 23% with expected revenue between $1.07 billion and $1.12 billion. The company aims to achieve full-year operating income profitability, targeting an operating margin between 3% and 4%, and maintaining gross margins of 78.5% to 79.5%. SentinelOne anticipates adding approximately $200 million in net new Annual Recurring Revenue (ARR), despite an anticipated $10 million churn due to the retirement of its legacy deception solution. The guidance reflects a strategic focus on data, cloud, and AI, with plans to surpass $1 billion in both ARR and revenue. The company remains cautious of macroeconomic conditions, including federal spending uncertainty, and aims for continued margin improvements and positive free cash flow margins.SentinelOne Corporate Events
Business Operations and StrategyFinancial Disclosures
SentinelOne Reports Strong Q4 2025 Financial Results
Positive
Mar 12, 2025
On March 12, 2025, SentinelOne announced its financial results for the fourth quarter and fiscal year 2025, highlighting a 29% increase in revenue and a 27% rise in annualized recurring revenue. The company achieved its first quarter of positive non-GAAP operating margin, reflecting strong execution and platform adoption. SentinelOne aims to surpass $1 billion in ARR and revenue in the coming year, signaling significant growth and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.