Shoud you buy SentinelOne stock? (August 2024)

Published first at https://www.3minutebreakdowns.com SentinelOne stock analysis. Ticker symbol: $S Since July 18th, cybersecurity stock SentinelOne has climbed 13%. But those gains have little do with business results. Instead, SentinelOne stock has soared after rival CrowdStrike caused a global outage that disrupted millions of people. The question is whether SentinelOne can hold on to those gains. At the latest price, SentinelOne has a market cap of 7.9 billion dollars. With 200 million of cash and 900 million of investments the enterprise value is 6.8 billion. Revenue over the last 12 months comes to 674 million but the company is not yet profitable. Net income is minus 300 million with zero free cash flow and 220 million of stock based compensation. But SentinelOne is delivering excellent growth. Sales more than doubled in 2021, 2022 and 2023. According to Bank of America, SentinelOne and Crowdstrike are the only two high-end players in endpoint security. Crowdstrike is clearly larger and more popular among big enterprise with nearly 5 times the amount of recurring revenue. But SentinelOne is growing faster. Fiscal 2024 revenue rose 47% at SentinelOne compared to 36% for Crowdstrike. And SentinelOne is also cheaper trading at 10 times revenue compared to Crowdstrike’s 18 times. Meanwhile, SentinelOne is moving closer to profitability. Free cash flow margin in the latest quarter was a respectable 18%. Crowdstrike was about 35%. #sentinelone #investing #stocks #stockanalysis #3mb