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Samsara (IOT)
NYSE:IOT
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Samsara
(NYSE:IOT)
63Neutral
Positive Factors
Growth Opportunities
Samsara is well-positioned within fleets and its video-based safety, telematics, and workflow application families which drive compelling ROI/safety benefits.
Market Position
Samsara has outpaced the market and seen competitors exit or be consolidated, leaving plenty of share gain opportunities.
Negative Factors
Macroeconomic Impact
Incremental macro weakness could more impactfully affect growth metrics, including potentially dampening momentum in international markets.
Valuation Concerns
A smaller beat on annual recurring revenue and a deceleration in net new ARR growth to 10% YoY could raise concerns, especially with the stock trading at a high valuation.
Samsara (IOT) vs. S&P 500 (SPY)
Market Cap
$22.54B
Dividend YieldN/A
Average Volume (3M)5.14M
Price to Earnings (P/E)―
Beta (1Y)2.44
Revenue Growth33.26%
EPS Growth47.73%
CountryUS
Employees2,895
SectorTechnology
Sector Strength51
IndustrySoftware
Share Statistics
EPS (TTM)-0.28
Shares Outstanding269,400,330
10 Day Avg. Volume6,238,215
30 Day Avg. Volume5,137,577
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)19.11
Price to Cash Flow (P/CF)156.50
P/FCF Ratio180.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.67Price Target Upside28.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Samsara Business Overview & Revenue Model
Company DescriptionSamsara is a leading provider in the Internet of Things (IoT) sector, specializing in cloud-connected sensor systems that enhance operational efficiency for businesses. The company offers a comprehensive suite of solutions including fleet management, industrial process monitoring, and workplace safety, leveraging its expertise in IoT technology to provide real-time data and insights that help organizations optimize performance and ensure safety compliance.
How the Company Makes MoneySamsara generates revenue primarily through the sale of its IoT hardware products and the subscription fees for its cloud-based software services. The company offers an integrated platform that combines IoT devices, such as sensors and cameras, with cloud-based software, which customers subscribe to on a recurring basis. This subscription model provides a steady revenue stream, as businesses rely on Samsara's solutions for continuous operational monitoring and data analytics. Additionally, Samsara may engage in strategic partnerships to expand its market reach and enhance its product offerings, further contributing to its revenue.
Samsara Financial Statement Overview
Summary
Samsara demonstrates a positive growth trajectory in revenue and cash flow, with improving operational efficiencies. While profitability metrics remain negative, there is clear progress in reducing losses and enhancing cash flow. The balance sheet is stable with low financial leverage, positioning the company well for future growth opportunities in the software industry.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.85
Very Positive
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.70
Positive
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.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.25B | 937.38M | 652.54M | 428.35M | 249.91M | 119.86M | Gross Profit |
| 950.88M | 690.35M | 469.89M | 303.86M | 174.51M | 71.54M | EBIT |
| -189.97M | -323.35M | -258.40M | -352.32M | -202.71M | -227.82M | EBITDA |
| -132.78M | -234.39M | -259.45M | -341.93M | -185.21M | -223.50M | Net Income Common Stockholders |
| -154.91M | -286.73M | -247.42M | -355.02M | -210.21M | -225.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 694.80M | 547.66M | 689.86M | 921.22M | 399.89M | 201.07M | Total Assets |
| 2.02B | 1.73B | 1.62B | 1.57B | 886.63M | 631.01M | Total Debt |
| 80.28M | 99.49M | 122.92M | 144.96M | 173.27M | 184.31M | Net Debt |
| -147.30M | -36.05M | -77.75M | -776.26M | -226.61M | -16.76M | Total Liabilities |
| 955.11M | 819.70M | 678.99M | 578.98M | 1.42B | 971.97M | Stockholders Equity |
| 1.07B | 915.15M | 938.02M | 988.95M | -532.80M | -340.96M |
| Cash Flow | Free Cash Flow | ||||
| 111.48M | -22.77M | -136.26M | -190.83M | -203.87M | -222.51M | Operating Cash Flow |
| 131.66M | -11.81M | -103.02M | -171.48M | -171.77M | -192.53M | Investing Cash Flow |
| -66.62M | -78.69M | -631.85M | -20.04M | -32.20M | -29.99M | Financing Cash Flow |
| 27.10M | 21.00M | 14.21M | 701.64M | 401.97M | 295.85M |
Samsara Technical Analysis
Negative
40.16
Price Trends
47.44
Negative
48.28
Negative
44.23
Negative
Market Momentum
-3.05
Negative
41.31
Neutral
90.65
Negative
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 40.16 is below the 20-day moving average (MA) of 41.81, below the 50-day MA of 47.44, and below the 200-day MA of 44.23, indicating a bearish trend. The MACD of -3.05 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOT.
Samsara Risk Analysis
Samsara disclosed 84 risk factors in its most recent earnings report. Samsara 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
Samsara Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.91T | 31.51 | 34.29% | 0.81% | 15.04% | 12.38% | |
74 Outperform | $239.89B | 26.42 | 20.02% | 2.65% | -5.34% | -30.57% | |
74 Outperform | $219.09B | 34.16 | 27.62% | 0.55% | -32.60% | -28.55% | |
67 Neutral | $226.13B | 37.95 | 24.14% | 2.74% | 1.45% | -20.56% | |
63 Neutral | $22.54B | ― | -15.61% | ― | 33.26% | 47.73% | |
61 Neutral | $19.23B | 49.30 | 12.99% | ― | 6.05% | 63.78% | |
58 Neutral | $21.97B | 10.49 | -18.75% | 2.40% | 4.80% | -25.17% |
* Technology Sector Average
Performance Comparison
IOT
Samsara
40.16
1.62
4.20%
CSCO
Cisco Systems
60.30
12.14
25.21%
GE
GE Aerospace
204.13
66.93
48.78%
IBM
International Business Machines
243.87
61.22
33.52%
MSFT
Microsoft
391.26
-28.40
-6.77%
PTC
PTC
159.84
-28.82
-15.28%
Samsara Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -4.11% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call for Samsara's Fourth Quarter Fiscal 2025 reported robust financial growth, particularly in ARR and customer expansion, alongside significant operational achievements such as reductions in safety incidents. However, the departure of a key executive and the impact of an extra week in the previous fiscal year were noted challenges. Overall, the sentiment is positive due to the strong growth metrics and strategic achievements outweighing the lowlights.Highlights
Strong Annual Recurring Revenue Growth
Samsara achieved $1.46 billion in ARR, a 32% year-over-year growth, or 33% year-over-year adjusted growth.
Large Customer Growth
Customers with more than $100,000 in ARR grew to 2,506, a 36% increase year-over-year.
Record Q4 Performance
Surpassed $100 million in quarterly net new ARR, added 203 $100,000+ ARR customers, achieved records for gross margin, operating margin, and free cash flow margin.
Significant Reductions in Safety Incidents
A major customer saw a 61% reduction in safety events, 82% reduction in distracted driving events, and 47% reduction in harsh driving events using Samsara's platform.
Product and Market Expansion
Processed over 14 trillion data points annually, reflecting over 50% year-over-year growth. Expanded into international markets, with 17% of net new ACV from international geographies.
Lowlights
Impact of Extra Week in Previous Fiscal Year
The Q4 of the previous year was a 14-week quarter, impacting year-over-year comparability.
Departure of Key Executive
President of Worldwide Field Operations, Lara Caimi, will be leaving following a personal leave of absence.
Company Guidance
During the earnings call for Samsara's fourth quarter fiscal 2025, the company highlighted a robust performance marked by significant growth metrics. Samsara achieved an annual recurring revenue (ARR) of $1.46 billion, reflecting a 32% year-over-year growth, with a 33% adjusted growth rate. The company reported a quarterly revenue of $346 million, increasing by 25% year-over-year, and a 36% adjusted growth rate. Samsara added 203 customers with over $100,000 in ARR, reaching a total of 2,506 such customers, a 36% year-over-year increase. Additionally, the company added 14 customers with over $1 million in ARR, totaling 118, a 44% year-over-year increase. The quarter also saw a net new ARR of $109 million, a 10% year-over-year increase. Samsara reported a gross margin of 78%, an operating margin of 16%, and a free cash flow margin of 14%, all achieving quarterly records. Looking ahead, the company provided guidance for Q1 fiscal 2026, expecting revenue between $350 million and $352 million, representing a 25% year-over-year growth, with a non-GAAP operating margin of 7% and non-GAAP EPS between $0.05 and $0.06. For the full fiscal year 2026, Samsara anticipates revenue between $1.523 billion and $1.533 billion, marking a year-over-year growth of 22% to 23%, with a non-GAAP operating margin of approximately 11% and non-GAAP EPS between $0.32 and $0.34.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.