Samsara (IOT) AI Stock Analysis

• Market Cap: $22.34B
• Dividend Yield: N/A
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: 31.72%
• EPS Growth: 57.55%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 299,748,930
• 10 Day Avg. Volume: 8,653,680
• 30 Day Avg. Volume: 5,371,350
• PEG Ratio: 0.91
• Price to Book (P/B): 7.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -51.93
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: -10.50
• 1Y Price Target: $48.07
• Price Target Upside: 19.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 66 Neutral
• Price Target: $42.00 ▲(4.27%Upside)

Samsara's strong financial performance and positive earnings call sentiment are offset by bearish technical indicators and a high valuation. The company's potential for future growth is promising, but current technical trends and valuation concerns warrant caution.

Positive Factors

Financial Performance

Samsara reported another strong quarter with results ahead of expectations while prudently raising guidance on a constant-currency basis.

Growth Opportunities

There remain deep expansion opportunities with current fleets, plenty of white space in safety and non-vehicle solutions, and opportunities outside the U.S. and in adjacencies.

Negative Factors

Macroeconomic Challenges

Samsara's ability to plow through tough macro headwinds fell short this quarter, as CFO Dominic Phillips noted, 'instances of elongated sales cycles on some transactions in the period following Liberation Day in April'.

Market Volatility

There is some worry regarding the latest period of macro-related volatility from investor conversations.

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 generates revenue primarily through a subscription-based model. The company charges customers for access to its IoT platform, which includes software licenses, and ongoing support and maintenance services. Additionally, Samsara sells IoT hardware devices, such as sensors and cameras, which are integrated into its platform to collect data. Key revenue streams include subscriptions to fleet management and industrial monitoring services, as well as sales of the accompanying hardware. Samsara also partners with various industry leaders to enhance its platform's capabilities and expand its market reach, contributing to its revenue growth.

Samsara Financial Statement Overview

Summary

Samsara demonstrates strong revenue growth of 33% and a robust gross profit margin of 76.1%, indicating efficient cost management. However, the company remains unprofitable with a negative net profit margin of -12.4%. The balance sheet is stable with a low debt-to-equity ratio of 0.08, and cash flows are improving with positive operating and free cash flow.

Income Statement

Samsara has shown strong revenue growth, with a substantial increase of approximately 33% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin is robust at 76.1% for TTM, reflecting efficient cost management. However, the company remains unprofitable with a negative net profit margin of -12.4%, though there's been an improvement from past periods. The EBIT and EBITDA margins remain negative, indicating ongoing operational challenges.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 52.8% and a solid return on equity improvement to -14.5% in TTM, which, while negative, shows progress. The debt-to-equity ratio is relatively low at 0.08, indicating low financial leverage. However, the negative net income impacts overall profitability.

Cash Flow

Samsara's cash flow position is strengthening, evidenced by positive operating cash flow of $131.7 million in TTM. The free cash flow has improved significantly, shifting from negative to a positive $111.5 million. The operating cash flow to net income ratio indicates better cash management, though free cash flow generation remains a challenge.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	937.38M	1.25B	937.38M	652.54M	428.35M	249.91M
Gross Profit	690.35M	950.88M	690.35M	469.89M	303.86M	174.51M
EBITDA	-242.80M	-164.45M	-234.39M	-259.45M	-341.93M	-185.21M
Net Income	-286.73M	-154.91M	-286.73M	-247.42M	-355.02M	-210.21M
Balance Sheet
Total Assets	1.73B	2.02B	1.73B	1.62B	1.57B	886.63M
Cash, Cash Equivalents and Short-Term Investments	547.66M	694.80M	547.66M	689.86M	921.22M	399.89M
Total Debt	99.49M	80.28M	99.49M	122.92M	144.96M	173.27M
Total Liabilities	819.70M	955.11M	819.70M	678.99M	578.98M	1.42B
Stockholders Equity	915.15M	1.07B	915.15M	938.02M	988.95M	-532.80M
Cash Flow
Free Cash Flow	-22.77M	111.48M	-22.77M	-136.26M	-190.83M	-203.87M
Operating Cash Flow	-11.81M	131.66M	-11.81M	-103.02M	-171.48M	-171.77M
Investing Cash Flow	-78.69M	-66.62M	-78.69M	-631.85M	-20.04M	-32.20M
Financing Cash Flow	21.00M	27.10M	21.00M	14.21M	701.64M	401.97M

Samsara Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.28
• 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 IOT, the sentiment is Negative. The current price of 40.28 is below the 20-day moving average (MA) of 43.04, below the 50-day MA of 42.31, and below the 200-day MA of 45.98, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.59 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
CHKP	76 Outperform	$23.65B	29.50	30.92%	―	6.40%	6.49%
NET	74 Outperform	$62.15B	―	-7.35%	―	27.79%	56.19%
CYBR	73 Outperform	$19.97B	1,777.39	-5.36%	―	35.12%	-191.84%
ZS	72 Outperform	$47.17B	―	-2.68%	―	25.46%	49.20%
IOT	66 Neutral	$22.34B	―	-11.77%	―	31.72%	57.55%
OKTA	65 Neutral	$17.27B	152.97	2.08%	―	13.51%	―
Sector *	63 Neutral	$32.30B	6.54	-12.31%	1.93%	5.64%	-21.98%

Samsara Corporate Events

Samsara Announces Retirement of Chief Accounting Officer

On March 25, 2025, Samsara Inc. announced that Andrew Munk, the Chief Accounting Officer, will retire effective April 8, 2025. His departure is not due to any disagreements with the company. Dominic Phillips, the Chief Financial Officer, will temporarily take over Munk’s responsibilities starting April 9, 2025, while the company searches for a permanent replacement.