Samsara, headquartered in San Francisco, develops IoT sensor systems and went public on December 15, 2021, employing 2,895 people. Its Connected Operations Cloud integrates AI and data analytics for various industries.
Based on our analysis, Samsara has received an overvalued rating of 1 out of 5 stars from Cashu. Several key financial ratios indicate that the company is not performing as well as its sector peers, contributing to this rating.
One significant metric is the Price-to-Book (PB) Ratio, which stands at an alarming 26.98 compared to the sector average of 3.49. A high PB ratio can suggest that a stock is overpriced relative to its book value, raising concerns about its valuation in the market.
Another indicator is the Return on Equity (ROE) Ratio, which is reported at -14.49, while the sector average is -21.72. This negative ratio highlights that Samsara is not generating profit from its shareholders' equity, though it performs better than the sector, it still indicates underlying issues with profitability.
Additionally, the Return on Assets (ROA) Ratio is -7.65, compared to the sector's -12.61. This ratio reflects how efficiently a company is using its assets to generate earnings, and a negative figure suggests inefficiencies in asset utilization.
Lastly, the Net Profit Margin stands at -12.40, which is an improvement over the sector's -14.77, yet still indicates that Samsara is struggling to convert revenue into profit.
These financial metrics illustrate why Samsara is viewed as overvalued, as it cannot consistently outperform its sector in critical areas of financial performance.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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