One-glance verdict
Overvalued
$4.13 our estimate vs market $18.75
Wall Street consensus: $21.88 (430.0% higher than our fair-value estimate)
354% above our estimate, beyond the bull case
Fundamentals snapshot
SailPoint, Inc.
SAIL · NMS · Technology · Software - Infrastructure
Current price
$18.75
52-week range
$10.30 - $23.08
Market cap
$10.70B
Balance sheet
Healthy
-12.48x Concerning
Net cash $278.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 8.8% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -13.4% to -18.8% over 3 years.
- Risk Return on equity was -2.9% last year — the company lost money on shareholders' equity.
What this company does
SailPoint, Inc.
SailPoint helps businesses manage who can access their important digital information, acting like a digital bouncer for companies. Their main income comes from selling software subscriptions, which is like getting paid regularly for access to their services (recurring revenue). This is important because strong identity security protects companies from cyber threats and keeps their sensitive data safe.
How the company got here
SailPoint was founded in 2005 with a simple but crucial question at its core: who should have access to what, and why? The company's mission is to provide identity security for businesses, ensuring that the right people have the right access to the right resources at the right time. Over the years, SailPoint has evolved its offerings, moving from on-premises solutions to cloud-based services to meet the changing needs of the enterprise. A significant turning point was its acquisition by Thoma Bravo in 2022, after which it returned to the public markets, continuing its focus on innovation in the identity security space.
What it actually does
SailPoint provides software that helps organizations manage and secure access to their digital resources. Think of it like a digital gatekeeper for businesses, controlling who can enter which digital doors and access specific information. This is crucial for security and for meeting strict industry rules, known as compliance. Their solutions help companies keep track of all their employees, contractors, and even automated systems (like bots) to ensure they only have the access they need to do their jobs, and nothing more.
Identity Security Cloud
This is SailPoint's primary offering, a cloud-based service that helps businesses manage and secure all types of digital identities and the data they access. It's like a comprehensive security system for a company's digital world, operating entirely over the internet. This service allows organizations to discover, manage, and secure everything from employee accounts to sensitive data and cloud infrastructure, ensuring that access is granted appropriately and risks are minimized.
IdentityIQ
IdentityIQ is SailPoint's on-premises solution, meaning it's software that a company installs and runs on its own computer systems rather than using it as a service over the internet. This product offers robust identity governance capabilities, allowing organizations to manage user access, provision and de-provision accounts, and monitor access activities to ensure compliance with internal policies and external regulations. It's a more traditional software approach for businesses that prefer to manage their security infrastructure in-house.
What management is betting on now
SailPoint's management is focused on building the next generation of unified identity security solutions, leveraging artificial intelligence (AI) and machine learning to make access management more intelligent and automated. They are betting on an "adaptive identity" approach, which means not just controlling who has access, but also understanding when and where that access is appropriate based on risk. This strategy aims to help organizations reduce risk, meet compliance requirements, and scale their security securely without hindering business operations.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-14.35M
FY2025 Q4
$12.26M
FY2026 Q1
$-99.00M
FY2026 Q2
$48.98M
FY2026 Q3
$52.55M
FY2026 Q4
$62.07M
FY2027 Q1
$37.27M
FY2027 Q2
$43.03M
Revenue
$308.81M
Net income
$-50.36M
Diluted EPS
-0.09
Operating cash flow
$44.96M
Free cash flow
$43.03M
Fetching…
Sources
Revenue
$280.14M
Net income
$-74.67M
Diluted EPS
-0.13
Operating cash flow
$38.24M
Free cash flow
$37.27M
Fetching…
Sources
Revenue
$294.65M
Net income
$-36.22M
Diluted EPS
-0.04
Operating cash flow
$63.86M
Free cash flow
$62.07M
Fetching…
Sources
Revenue
$281.94M
Net income
$-35.98M
Diluted EPS
-0.06
Operating cash flow
$53.58M
Free cash flow
$52.55M
Fetching…
Sources
Revenue
$264.36M
Net income
$-10.55M
Diluted EPS
-0.02
Operating cash flow
$49.95M
Free cash flow
$48.98M
Fetching…
Sources
Revenue
$230.47M
Net income
$-187.31M
Diluted EPS
-0.42
Operating cash flow
$-96.81M
Free cash flow
$-99.00M
Fetching…
Sources
Revenue
$240.12M
Net income
$-80.10M
Diluted EPS
-6.50
Operating cash flow
$13.79M
Free cash flow
$12.26M
Fetching…
Sources
Revenue
$235.26M
Net income
$-59.42M
Diluted EPS
-2.67
Operating cash flow
$-12.00M
Free cash flow
$-14.35M
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.13 vs current price $18.75
Wall Street consensus is the average analyst price target: $21.88 (430.0% higher than our fair-value estimate).
Our most-likely fair value is $4.13 a share — about 78.0% below today's price of $18.75, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $278.5M - more cash than debt. Interest coverage -12.5x.
Net debt
$-278.48M
Interest coverage
-12.48x
SailPoint, 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
SAIL
BASELINE
SailPoint, Inc.
Total debt $31.36M Interest coverage -12.48x This is the baseline the peer rows are being compared against.
Total debt $53.00M Interest coverage 38.25x This peer still has a real interest-payment cushion, while SAIL does not.
Total debt $820.18M Interest coverage -10.47x Neither company has much profit cushion over interest right now.
Total debt $561.40M Interest coverage 103.72x This peer still has a real interest-payment cushion, while SAIL does not.
What you should know
The case for and against SAIL
2 Rewards
2 Risks
Rewards
-
Revenue grew 8.8% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -13.4% to -18.8% over 3 years.
-
Return on equity was -2.9% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
46.53x
P/B
1.56x
P/S
9.18x
EV/EBITDA
-1,100.96x
PEG ratio
1.52x
Profitability
How much profit each dollar creates
Gross margin
66.3%
Operating margin
-18.8%
Net margin
-16.9%
ROE
-2.9%
ROA
-1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
1.23x
Quick ratio
1.05x
Total debt
$31.36M
Total cash
$309.85M
Growth
How the business has been compounding
Revenue TTM
$1.17B
Revenue 5Y CAGR
53.2%
EPS TTM
-0.34
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$200.65M
Free CF TTM
$51.75M
FCF margin
4.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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