One-glance verdict
Overvalued
$29.74 our estimate vs market $38.56
Wall Street consensus: $52.16 (75.4% higher than our fair-value estimate)
30% above our estimate, beyond the bull case
Fundamentals snapshot
Samsara Inc.
IOT · NYQ · Technology · Software - Infrastructure
Current price
$38.56
52-week range
$23.38 - $47.47
Market cap
$22.58B
Balance sheet
Healthy
-26,288.00x Concerning
Net cash $759.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 14.1% last year.
- Reward Returns 6.4% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 2/10 years.
What this company does
Samsara Inc.
Samsara helps companies manage their physical operations by selling internet-connected sensors and cameras for their vehicle fleets and industrial sites. Customers then pay a subscription fee to use Samsara's software, which collects data from these devices to help them improve safety, track assets, and operate more efficiently. This subscription model provides Samsara with recurring revenue (predictable income that comes in regularly, similar to a Netflix subscription).
How the company got here
Samsara was started in 2015 by Sanjit Biswas and John Bicket, the same duo who previously founded and sold a company called Meraki to Cisco for over a billion dollars. They wanted to use technology to help businesses that deal with physical things, like trucks, construction equipment, and industrial sites. The company grew quickly by focusing on the transportation industry's need for better tracking and safety, eventually becoming a public company in 2021, which means its stock is now traded on the New York Stock Exchange under the ticker symbol IOT.
What it actually does
Samsara provides a system that connects physical assets, like vehicles and equipment, to the internet. It combines hardware, such as cameras and GPS sensors, with cloud-based software (software that runs on the internet instead of your personal computer). This allows companies to see in real-time where their vehicles are, how they're being used, and if there are any safety issues, all from a single dashboard. Think of it as a smart-home system, but for a fleet of trucks or a construction site, helping businesses save money on fuel, reduce accidents, and operate more efficiently.
Connected Operations Platform
This is the core of Samsara's business, where it sells subscriptions to its all-in-one software platform. Customers pay a recurring fee to access a range of applications that help them manage their physical operations. This single business segment generates almost all of the company's revenue, with subscriptions making up over 98% of the total. The platform includes tools for video-based safety, vehicle telematics (tracking location, speed, and fuel usage), equipment monitoring, and managing workflows for drivers and other workers.
What management is betting on now
Samsara is heavily investing in Artificial Intelligence (AI) to make its platform smarter and more proactive. The goal is for their system to not just report data, but to automatically identify risks, suggest ways to be more efficient, and even coach drivers on safety without a manager needing to intervene. They are also focused on a "land-and-expand" strategy, which means they aim to get a customer started with one product, like vehicle tracking, and then sell them additional services over time. Finally, the company sees significant growth opportunities by expanding its business in Europe and continuing to develop new products for different industries like construction, food and beverage, and government services.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$31.24M
FY2026 Q1
$48.51M
FY2026 Q2
$45.69M
FY2026 Q3
$44.19M
FY2026 Q4
$55.84M
FY2027 Q2
$73.18M
FY2027 Q3
$64.74M
Revenue
$508.44M
Net income
$16.24M
Diluted EPS
0.03
Operating cash flow
$73.52M
Free cash flow
$64.74M
Fetching…
Sources
Revenue
$478.84M
Net income
$44.51M
Diluted EPS
0.08
Operating cash flow
$81.41M
Free cash flow
$73.18M
Fetching…
Sources
Revenue
$415.98M
Net income
$7.77M
Diluted EPS
0.01
Operating cash flow
$63.70M
Free cash flow
$55.84M
Fetching…
Sources
Revenue
$391.48M
Net income
$-16.80M
Diluted EPS
-0.03
Operating cash flow
$50.16M
Free cash flow
$44.19M
Fetching…
Sources
Revenue
$366.88M
Net income
$-22.12M
Diluted EPS
-0.04
Operating cash flow
$52.61M
Free cash flow
$45.69M
Fetching…
Sources
Revenue
$346.29M
Net income
$-11.20M
Diluted EPS
-0.02
Operating cash flow
$53.86M
Free cash flow
$48.51M
Fetching…
Sources
Revenue
$321.98M
Net income
$-37.81M
Diluted EPS
-0.07
Operating cash flow
$36.01M
Free cash flow
$31.24M
Fetching…
Sources
Is it cheap or expensive?
Fair value $29.74 vs current price $38.56
Wall Street consensus is the average analyst price target: $52.16 (75.4% higher than our fair-value estimate).
Our most-likely fair value is $29.74 a share — about 22.9% below today's price of $38.56, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $759.4M - more cash than debt. Interest coverage -26288.0x.
Net debt
$-759.44M
Interest coverage
-26,288.00x
Samsara Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
IOT
BASELINE
Samsara Inc.
Total debt $69.49M Interest coverage -26,288.00x This is the baseline the peer rows are being compared against.
Total debt $1.46B Interest coverage 8.22x This peer still has a real interest-payment cushion, while IOT does not.
Total debt $2.96B Interest coverage 7.41x This peer still has a real interest-payment cushion, while IOT does not.
Total debt $1.61B Interest coverage 12.96x This peer still has a real interest-payment cushion, while IOT does not.
Total debt $67.53M Interest coverage -107.84x Neither company has much profit cushion over interest right now.
What you should know
The case for and against IOT
3 Rewards
0 Risks
Rewards
-
Revenue grew 14.1% last year.
-
Returns 6.4% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
257.07x
Forward P/E
40.61x
P/B
14.91x
P/S
12.22x
EV/EBITDA
685.13x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
76.4%
Operating margin
1.0%
Net margin
4.9%
ROE
6.4%
ROA
0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
1.62x
Quick ratio
1.21x
Total debt
$69.49M
Total cash
$828.93M
Growth
How the business has been compounding
Revenue TTM
$1.85B
Revenue 5Y CAGR
39.4%
EPS TTM
0.15
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$288.37M
Free CF TTM
$207.44M
FCF margin
11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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