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SentinelOne

S
26
Software - Infrastructure · Technology
Price
$19.57
-0.06 (-0.31%)
Market Cap
$6.59B
Winston Score
26
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+89.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 174.1M (2022) → 330.1M (2026)

SentinelOne is a cybersecurity company that protects computers, servers, and cloud systems from hackers and malware. Its main product is an AI-powered platform called Singularity, which automatically detects and stops cyberattacks in real time without needing humans to review every threat. Its customers include large businesses, government agencies, and other organizations that need to keep their digital systems safe.

SentinelOne makes money by charging customers recurring subscription fees to use its security software. The company operates globally, with most of its revenue coming from North America, and competes directly against larger rivals like CrowdStrike and Microsoft. With a 74% gross margin, the underlying business is efficient, but SentinelOne is still spending heavily to grow, resulting in significant operating losses — the key question is whether it can expand its customer base fast enough to reach profitability before competition from better-funded players erodes its market position.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-50.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$324M/ year

Rising (+21% vs prior year)

32.3% of revenue

2.2x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

8.1%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$170M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

SentinelOne is putting 32% of revenue into R&D and that number is rising. That's 2.2x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
75.6%
Premium pricing power — 75.6% gross margin
Operating Margin
-29.4%
Losing money on operations — -29.4%
ROCE
-5.6%
Weak — -5.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+22.8%
Fast-growing sales (22.8% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
0.4%
Thin free cash flow (0.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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