Samsara Inc. Class A Common Stock (IOT)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. Samsara is a growing software-infrastructure company connecting physical operations data, but the numbers are not yet those of a mature Buffett-style compounder. In fiscal year 2024, the year ended 2024-02-03, revenue was $937.4M; in fiscal year 2025, the year ended 2025-02-01, revenue was $1.2B; and in fiscal year 2026, the year ended 2026-01-31, revenue was $1.6B with net loss of $9.1M. In fiscal Q2 2027, the quarter ended 2026-08-01, revenue was $508.4M, net income was $16.2M, and diluted EPS was $0.03. That is a real improvement, and the balance sheet looks conservative: D/E is 0.04, Altman Z-Score is 12.19, and Piotroski is 7/9. But returns are still weak: ROE is 6.43%, ROCE is 0.49%, and FairStock's Lynch category is none because of losses in each of the last four years. Free cash flow is positive at $255.5M TTM, yet FCF yield is only 1.0%. At the 2026-10-13 close of $41.27, FairStock calculations put P/E at 275.13, P/B at 15.93, EV/EBITDA at 490.64, and Graham Number at $3.04 - a margin of safety of -1257.57%. Growth is attractive and the quarterly profit turn is encouraging, but the price already assumes a lot. I would need evidence that returns on capital are rising and profits are durable before calling this a bargain. The FairStock Score of 40/100 also tells me the market is paying dearly for future execution.

In plain English: Samsara sells software and connected devices that help companies manage physical operations such as fleets and equipment. Revenue is growing quickly and the company recently made small profits, but it lost money in each of the last four fiscal years and earns low profit relative to its assets. At the recent price, the stock looks expensive compared with those profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-01) · fiscal Q1 2027 10-Q (period ended 2026-05-02) · fiscal Q3 2026 10-Q (period ended 2025-11-01) · fiscal Q2 2026 10-Q (period ended 2025-08-02) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-02-01) · FY2024 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer