SentinelOne (S) AI Stock Analysis

• Market Cap: $5.42B
• Dividend Yield: N/A
• Average Volume (3M): 7.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 28.19%
• EPS Growth: -31.34%
• Country: US
• Employees: 2,800
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 318,339,540
• 10 Day Avg. Volume: 7,180,964
• 30 Day Avg. Volume: 7,396,837
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 6.15
• Enterprise Value/Gross Profit: 8.22
• Enterprise Value/Ebitda: -21.06
• 1Y Price Target: $22.92
• Price Target Upside: 33.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28

• Rating: 64 Neutral
• Price Target: ―

SentinelOne demonstrates strong revenue growth and significant profitability milestones, enhancing its financial performance score. However, technical indicators suggest bearish momentum, and the negative P/E ratio underscores profitability challenges. The positive outlook from the earnings call, with strategic focus on AI and cloud security, contributes to a favorable sentiment, though operational hurdles and macroeconomic uncertainties remain.

Positive Factors

Market Position

The company is significantly undervalued—trading at an approximate 40% discount to its peer group—given its strategic position as a leader in AI-driven cybersecurity.

Revenue Growth

Sentinelone reported a 23% year-over-year increase in F1Q26 revenue, slightly exceeding estimates and consensus.

Strategic Acquisition

SentinelOne's acquisition of Prompt Security targets real-time agentic runtime protection, which most others have yet to offer at scale.

Negative Factors

Acquisition Cost

The acquisition is considered very expensive as Prompt Security only generated multi-millions in ARR across dozens of customers in the F500.

Macroeconomic Challenges

Macro uncertainty has led to elongated sales cycles and deals slipping out of the quarter, impacting net new ARR and revenue growth projections.

Stock Performance

The stock has underperformed NASDAQ by -1000bps and -1860bps, YTD and on a 12M basis, respectively.

SentinelOne Business Overview & Revenue Model

Company Description

SentinelOne, 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 Money

SentinelOne 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's financials show robust revenue growth and strong gross margins, indicative of a well-managed top line. While balance sheet strength is evident with no debt and high equity, the challenge remains in operational profitability and return on equity. Positive cash flow trends are a notable strength, offering potential for future financial flexibility.

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.

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.

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.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	-238.67M	-292.71M	-349.18M	-258.54M	-109.79M
Net Income	-288.44M	-338.69M	-378.68M	-271.10M	-117.57M
Balance Sheet
Total Assets	2.41B	2.32B	2.26B	2.04B	520.56M
Cash, Cash Equivalents and Short-Term Investments	721.90M	925.96M	623.52M	1.67B	395.84M
Total Debt	0.00	22.93M	26.97M	29.08M	42.09M
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

• Technical Analysis Sentiment: Negative
• Last Price: 17.19
• 50DMA: Negative
• 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 S, the sentiment is Negative. The current price of 17.19 is below the 20-day moving average (MA) of 18.08, below the 50-day MA of 17.99, and below the 200-day MA of 21.01, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for S.

SentinelOne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	77 Outperform	$60.13B	31.32	165.17%	―	14.46%	48.06%
CRWD	77 Outperform	$108.62B	721.64	-5.76%	―	25.94%	-226.80%
PANW	76 Outperform	$117.07B	100.37	21.16%	―	13.91%	-50.96%
CYBR	70 Neutral	$21.09B	1,777.39	-10.35%	―	39.45%	-982.51%
S	64 Neutral	$5.42B	―	-26.98%	―	28.19%	-31.34%
Sector *	61 Neutral	$36.32B	7.12	-7.26%	1.97%	7.79%	-9.36%
TENB	60 Neutral	$3.59B	―	-12.60%	―	11.41%	33.76%

SentinelOne Corporate Events

SentinelOne Reports Strong Q4 2025 Financial Results

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.