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SentinelOne (S)
NYSE:S
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SentinelOne
(NYSE:S)61Neutral
Positive Factors
Business Momentum
SentinelOne continues to move in the right direction with improving business momentum and New ARR growth coming back into positive territory.
Product Demand
Strong demand for EDR and XDR products supports multiple vendors in the market.
Negative Factors
Competitive Pressure
Higher discounts from larger platform players result in more pricing pressure in the endpoint security market.
SentinelOne (S) vs. S&P 500 (SPY)
Market Cap
$6.47B
Dividend YieldN/A
Average Volume (3M)3.99M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth34.38%
EPS Growth24.90%
CountryUS
Employees2,300
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-0.93
Shares Outstanding295,079,040
10 Day Avg. Volume4,740,603
30 Day Avg. Volume3,992,360
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.40
Price to Cash Flow (P/CF)-225.50
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
$28.92Price Target Upside45.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
SentinelOne Business Overview & Revenue Model
Company DescriptionSentinelOne Inc is an autonomous cybersecurity platform. The company's cybersecurity solutions encompass AI-powered prevention, detection, response, and hunting across endpoints, containers, cloud workloads, and IoT devices in a single autonomous XDR platform.
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 demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability remains a concern with persistent net losses affecting overall financial health. Positive trends in cash flow management suggest potential for improvement, but achieving sustained profitability will be crucial for future stability.Income Statement
SentinelOne shows strong revenue growth with a notable increase in TTM revenue compared to the previous year. However, the company is still operating at a loss with negative net income and EBIT margins. The gross profit margin is healthy, indicating efficient cost management, but the negative net profit margin highlights ongoing challenges in profitability.62
Positive
Balance Sheet
The company maintains a solid equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting limited leverage use. However, continuous net losses put pressure on equity growth, and the return on equity remains negative due to negative net income.70
Positive
Cash Flow
SentinelOne has shown improvement in free cash flow, with positive growth in the TTM period, reflecting better operational cash management. The operating cash flow to net income ratio is positive, indicating efficient cash conversion despite negative net income. However, historical negative free cash flow highlights cash flow challenges.58
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 770.12M | 621.15M | 422.18M | 204.80M | 93.06M | 46.47M | Gross Profit |
| 565.60M | 441.87M | 278.00M | 123.12M | 53.72M | 28.14M | EBIT |
| -330.31M | -378.42M | -402.58M | -267.23M | -115.52M | -74.98M | EBITDA |
| -240.09M | -292.71M | -349.18M | -258.54M | -109.79M | -73.13M | Net Income Common Stockholders |
| -289.63M | -338.69M | -378.68M | -271.10M | -117.57M | -76.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 925.96M | 925.96M | 623.52M | 1.67B | 395.84M | 45.70M | Total Assets |
| 2.32B | 2.32B | 2.26B | 2.04B | 520.56M | 112.45M | Total Debt |
| 22.93M | 22.93M | 26.97M | 29.08M | 42.09M | 19.60M | Net Debt |
| -233.72M | -233.72M | -110.97M | -1.64B | -353.38M | -25.76M | Total Liabilities |
| 727.36M | 727.36M | 602.21M | 391.39M | 841.10M | 336.67M | Stockholders Equity |
| 1.59B | 1.59B | 1.66B | 1.65B | -320.54M | -224.21M |
| Cash Flow | Free Cash Flow | ||||
| 24.76M | -87.14M | -212.10M | -105.88M | -72.83M | -47.28M | Operating Cash Flow |
| 30.95M | -68.37M | -193.29M | -95.59M | -66.57M | -44.42M | Investing Cash Flow |
| 27.13M | 140.59M | -1.31B | -19.74M | -6.26M | -3.19M | Financing Cash Flow |
| 55.35M | 47.46M | 36.31M | 1.39B | 423.98M | 52.77M |
SentinelOne Technical Analysis
Negative
19.90
Price Trends
22.76
Negative
24.53
Negative
23.09
Negative
Market Momentum
-0.90
Positive
28.80
Positive
11.23
Positive
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 19.9 is below the 20-day moving average (MA) of 22.77, below the 50-day MA of 22.76, and below the 200-day MA of 23.09, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 28.80 is Positive, neither overbought nor oversold. The STOCH value of 11.23 is Positive, 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.61B | 104.16 | 19.68% | ― | 13.86% | -46.44% | |
80 Outperform | $29.74B | ― | -2.54% | ― | 30.77% | 79.05% | |
79 Outperform | $81.88B | 47.12 | 116.83% | ― | 12.27% | 54.69% | |
78 Outperform | $96.10B | 770.46 | 4.14% | ― | 31.35% | ― | |
63 Neutral | $4.58B | ― | -9.73% | ― | 12.68% | 54.80% | |
61 Neutral | $6.47B | ― | -17.67% | ― | 34.38% | 24.90% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
S
SentinelOne
19.90
-5.60
-21.96%
FTNT
Fortinet
106.48
37.44
54.23%
PANW
Palo Alto Networks
184.38
38.82
26.67%
ZS
Zscaler
193.82
-12.54
-6.08%
TENB
Tenable Holdings
38.04
-7.51
-16.49%
CRWD
CrowdStrike Holdings
390.16
92.60
31.12%
SentinelOne Earnings Call Summary
Earnings Call Date: Dec 4, 2024 | % Change Since: -30.61% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong performance with significant ARR and revenue growth, as well as notable achievements in customer base expansion and platform capabilities. However, challenges such as legal costs and macroeconomic pressures were acknowledged. The overall sentiment leans towards positive due to the substantial growth and raised guidance.Highlights
Record-Breaking ARR Growth
Total ARR grew 29% year-over-year to $860 million, with net new ARR of $54 million, marking a 22% sequential increase and a 4% year-over-year growth.
Strong Revenue and Margin Performance
Revenue increased 28% year-over-year to $211 million in Q3, with a gross margin of 80% and an operating margin improvement of over 6 percentage points compared to last year.
Expansion of Customer Base
A record number of customers with ARR of $100,000 or more were added, and customers with ARR over $1 million grew even faster.
Raising of Full-Year Revenue Guidance
Full-year revenue guidance was raised to $818 million, reflecting 32% growth, up from prior guidance of 31% growth.
Positive Net Income and Free Cash Flow
For the second consecutive quarter, positive net income was achieved, and for the first time, positive free cash flow on a trailing 12-month basis was realized.
Lowlights
Onetime Legal Settlement Costs
Q3 operating margin was impacted by onetime legal settlement costs and legal fees.
Challenging Macroeconomic Environment
Organizations continue to focus on cost and efficiency, with ongoing pressure from an intense threat landscape.
Company Guidance
During the SentinelOne Q3 2025 earnings call, the company provided updated guidance reflecting strong performance and business momentum. SentinelOne raised its full-year revenue growth guidance to 32%, up from the previous 31%, supported by a robust pipeline and increasing customer engagements. In Q3, the company's total ARR grew 29% year-over-year to $860 million, with net new ARR of $54 million, marking a 4% year-over-year growth. Revenue for the quarter increased 28% to $211 million, and the company achieved a gross margin of 80% and a negative operating margin of 5%, which would have been negative 3% excluding onetime legal settlement costs. SentinelOne anticipates Q4 revenue of approximately $222 million, representing a 27% year-over-year increase, and maintains expectations for stronger net new ARR growth in the second half of fiscal '25 compared to the first half.SentinelOne Corporate Events
Business Operations and StrategyFinancial Disclosures
SentinelOne Achieves Strong Revenue Growth and Profitability
Positive
Dec 4, 2024
SentinelOne’s recent financial results showcase a robust performance, with a 28% year-over-year revenue increase and a 29% rise in annualized recurring revenue, driven by the growing adoption of its AI-powered Singularity Platform. The company achieved positive free cash flow for the first time and improved operating margins, reflecting strong execution and business momentum. Looking ahead, SentinelOne has raised its revenue growth outlook to 32% for fiscal year 2025, underlining its commitment to sustained profitability and market leadership in cybersecurity.
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.