SentinelOne, Inc. (NYSE: S)

Sector: Technology Industry: Software - Infrastructure CIK: 0001583708
Market Cap 4.97 Bn
P/B 3.21
P/E -12.10
P/S 5.21
ROIC (Qtr) -19.99
Div Yield % 0.00
Rev 1y % (Qtr) 22.91
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

SentinelOne, Inc., a cybersecurity company with ticker symbol S, is transforming the way organizations protect themselves from cyber threats with its AI-powered Singularity Platform. This unified, autonomous, and real-time defense system is designed to provide a single, unified data and security architecture that can ingest, correlate, and query petabytes of structured and unstructured data from a variety of sources in real-time. SentinelOne's primary business activities revolve around developing and delivering cybersecurity solutions that enable...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 68.84M provides exceptional 1128.59x coverage of interest expenses 61000, showing strong debt service capability.
  • Robust free cash flow of 45.28M exceeds capital expenditure of 23.57M by 1.92x, indicating strong organic growth funding capability.
  • Free cash flow of 45.28M provides exceptional 742.28x coverage of interest expense 61000, showing strong debt service ability.
  • Robust tangible asset base of 1.38B provides 4.19x coverage of working capital 329.34M, indicating strong operational backing.
  • R&D investment of 309.12M represents healthy 0.54x of deferred revenue 569.47M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 68.84M barely covers its investment activities of (157.28M), with a coverage ratio of -0.44, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (157.28M) provide weak support for R&D spending of 309.12M, which is -0.51x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 150.21M provide limited coverage of acquisition spending of (307M), which is -0.49x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 499.64M significantly exceed cash reserves of 150.21M, which is 3.33x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 68.84M provides insufficient coverage of deferred revenue obligations of 569.47M, which is 0.12x, raising concerns about future service delivery capabilities.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.93 2.69
EV to Cash from Ops. EV/CFO 68.23 28.91
EV to Debt EV to Debt 0.00 19.83
EV to EBIT EV/EBIT -17.02 -9.95
EV to EBITDA EV/EBITDA -17.50 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 103.73 26.09
EV to Market Cap EV to Market Cap 0.94 0.36
EV to Revenue EV/Rev 4.91 -9.34
Price to Book Value [P/B] P/B 3.21 3.88
Price to Earnings [P/E] P/E -12.10 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) -4,525.05 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.08 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.28 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -41.97 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.53 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 2.25 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 2.23 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -32.98 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 800.18 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 25.72 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.24 1.22
Current Ratio Curr Ratio (Qtr) 1.53 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.96
Interest Cover Ratio Int Coverage (Qtr) -4,525.05 -14.20
Times Interest Earned Times Interest Earned (Qtr) -4,525.05 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -23.30 -548.16
EBIT Margin % EBIT Margin % (Qtr) -28.88 -199.84
EBT Margin % EBT Margin % (Qtr) -28.89 -607.20
Gross Margin % Gross Margin % (Qtr) 74.70 51.88
Net Profit Margin % Net Margin % (Qtr) -43.00 -610.00