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SentinelOne (S)
NYSE:S
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SentinelOne
(NYSE:S)
Rating:64Neutral
Price Target:―
Positive Factors
Strategic Partnerships
OEM partnership with Lenovo embeds its Singularity platform and Purple AI into millions of commercial PCs, establishing the company as the preinstalled AI-security baseline on Lenovo hardware.
Valuation
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.
Negative Factors
Financial Guidance
Sentinelone's FY26 revenue guidance has been slightly lowered due to potential macroeconomic disruptions, reflecting a more cautious outlook.
Macroeconomic Conditions
Macro uncertainty has led to elongated sales cycles and deals slipping out of the quarter, impacting net new ARR and revenue growth projections.
SentinelOne (S) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.48B
Dividend YieldN/A
Average Volume (3M)7.08M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth32.25%
EPS Growth20.56%
CountryUS
Employees2,800
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.02
Shares Outstanding318,339,540
10 Day Avg. Volume9,317,036
30 Day Avg. Volume7,075,531
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)3.75
Price to Sales (P/S)0.00
P/FCF Ratio224.73
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit8.39
Enterprise Value/Ebitda-5.42
Forecast
1Y Price Target
$22.96Price Target Upside17.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering27
SentinelOne Business Overview & Revenue Model
Company DescriptionSentinelOne is a cybersecurity company that specializes in endpoint protection platforms designed to prevent, detect, and respond to cyber threats. Operating in the technology and cybersecurity sectors, the company offers a suite of products that leverage artificial intelligence to provide autonomous threat prevention and detection capabilities. Its solutions are widely used by enterprises across various industries to enhance their cybersecurity posture.
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 Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions or contracts over a year, highlighting the company's financial stability and growth potential through consistent income streams.
Measures the predictable revenue generated from subscriptions or contracts over a year, highlighting the company's financial stability and growth potential through consistent income streams.
Data provided by:
Main Street Data
Main Street DataSentinelOne Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2026)
| % Change Since: 11.96%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with record free cash flow and revenue growth, alongside significant advancements in AI and cloud security. However, macroeconomic uncertainties and elongated sales cycles posed challenges, leading to cautious full-year guidance. Despite these challenges, the company remains confident in its strategic initiatives and long-term growth potential.Q1-2026 Updates
Positive Updates
Record Free Cash Flow Margin
SentinelOne achieved a record free cash flow margin of 20% in Q1, demonstrating strong cash generation and operational efficiency.
Revenue Growth Exceeds Expectations
The company delivered revenue growth of 23% year-over-year, surpassing expectations with a quarterly revenue of $229 million.
Expansion in AI and Cloud Security
Purple AI achieved triple-digit year-over-year growth in quarterly bookings, with a 25% attach rate across subscriptions sold. Additionally, the unified cloud security suite was introduced, enhancing cloud workload protection and security posture management.
Data Solutions Surpass $100 Million ARR
The data solutions segment surpassed $100 million in annual recurring revenue, highlighting strong demand for AI-driven cloud-native data solutions.
Strategic Federal Growth
SentinelOne achieved FedRAMP high authorization for its Purple AI and cloud security solutions, enhancing its competitive position in the federal market.
Share Repurchase Authorization
A $200 million open-ended share repurchase authorization was announced, reflecting confidence in the company's long-term trajectory.
Negative Updates
Elongated Sales Cycles
Q1 was impacted by elongated sales cycles due to macroeconomic uncertainty, affecting net new ARR growth and leading to cautious full-year growth assumptions.
Reduced Revenue Guidance
Full-year revenue guidance was reduced by 1% due to macroeconomic uncertainties, with expectations for $996 million to $1 billion in revenue.
Challenges in Federal Sector
Despite achieving FedRAMP high authorization, the federal sector experienced longer sales cycles and procurement challenges, affecting deal timelines.
Company Guidance
In the SentinelOne Q1 FY2026 earnings call, the company provided guidance for the second fiscal quarter and the full fiscal year 2026, highlighting a revenue expectation of approximately $242 million for Q2, reflecting a 22% growth. The full-year revenue is projected to range between $996 million and $1 billion, also demonstrating a 22% growth. The company maintains a gross margin forecast of around 79% for Q2 and between 78.5% and 79.5% for the full year, with an operating margin expected to be between positive 3% and 4%, marking an improvement of over 650 basis points from FY2025. Additionally, the free cash flow margin for the full year is anticipated to exceed the operating margin by several percentage points. SentinelOne also announced a $200 million share repurchase authorization, reflecting confidence in its long-term trajectory.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.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 |
| 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
Positive
19.47
Price Trends
18.47
Positive
18.52
Positive
21.56
Negative
Market Momentum
0.27
Negative
61.71
Neutral
52.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For S, the sentiment is Positive. The current price of 19.47 is above the 20-day moving average (MA) of 18.31, above the 50-day MA of 18.47, and below the 200-day MA of 21.56, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $80.41B | 43.24 | 205.91% | ― | 13.83% | 58.13% | |
74 Outperform | $134.13B | 115.11 | 21.16% | ― | 13.91% | -50.96% | |
74 Outperform | $115.03B | 721.64 | -5.76% | ― | 25.94% | -226.80% | |
67 Neutral | $4.09B | ― | -12.09% | ― | 11.79% | 35.35% | |
66 Neutral | $18.92B | 1,777.39 | -5.36% | ― | 35.12% | -191.84% | |
64 Neutral | $6.48B | ― | -26.98% | ― | 32.25% | 20.56% | |
63 Neutral | $34.70B | 4.89 | -11.39% | 1.66% | 5.53% | -19.00% |
* Technology Sector Average
Performance Comparison
S
SentinelOne
19.47
-3.64
-15.75%
FTNT
Fortinet
104.77
47.46
82.81%
PANW
Palo Alto Networks
201.16
41.10
25.68%
CYBR
CyberArk Software
375.34
118.48
46.13%
TENB
Tenable Holdings
33.07
-9.83
-22.91%
CRWD
CrowdStrike Holdings
462.03
207.88
81.79%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.