In every market cycle, some high-growth companies are misunderstood—until they aren’t. Palantir (PLTR) was one such stock, dismissed early for its lack of profitability and complex model, only to soar when its AI tools gained traction. Now, SentinelOne (NYSE: S) may be next in line.
🧠 What SentinelOne Does
SentinelOne is a top-tier cybersecurity firm offering an AI-powered endpoint protection platform called Singularity. Like Palantir, SentinelOne has faced criticism for:
Persistent losses
High stock-based compensation (SBC)
A misunderstood business model
Despite this, its technology is sticky, deeply embedded in client IT systems, and well-positioned to ride macro trends in AI and cybersecurity.
📈 Financials: Turning a Corner
While the stock hasn’t moved much in two years, trading around $18, SentinelOne’s fundamentals are improving:
Revenue Growth: Double-digit YoY revenue growth (23%+ in each of the last 10 quarters)
Free Cash Flow: $214 million in the past 12 months (~25% FCF margin)
Gross Margins: High and improving
Operating Expenses: Slowing, creating operating leverage
Adjusted Earnings: Near breakeven, signaling profitability is in reach
These trends mirror Palantir’s path before its breakout, particularly the shift from high OpEx to better margins and rising free cash flow.
💰 Valuation: Still Underrated
SentinelOne is trading at only 6x sales and 27x free cash flow, despite:
Strong 20%+ expected revenue growth
Analyst EPS estimates of ~$0.50 by 2028
A market cap under $6 billion
It’s significantly cheaper than peers like CrowdStrike and Palo Alto Networks—despite having similar growth and margin profiles.
⚠️ Risks to Consider
Fierce Competition: Cybersecurity is a crowded field. SentinelOne will have to keep innovating to stay relevant.
Market Sentiment: As a high-growth name, it may be hit hard in downturns.
Limited TAM vs. PLTR: The cybersecurity market isn’t as vast as AI data platforms.
🚀 Final Take
With strong recurring revenue, improving profitability, and an attractive valuation, SentinelOne looks poised for a re-rating. While it may not match Palantir’s scale or splash, the setup is strikingly similar.
Rating: Strong Buy
🧠 What SentinelOne Does
SentinelOne is a top-tier cybersecurity firm offering an AI-powered endpoint protection platform called Singularity. Like Palantir, SentinelOne has faced criticism for:
Persistent losses
High stock-based compensation (SBC)
A misunderstood business model
Despite this, its technology is sticky, deeply embedded in client IT systems, and well-positioned to ride macro trends in AI and cybersecurity.
📈 Financials: Turning a Corner
While the stock hasn’t moved much in two years, trading around $18, SentinelOne’s fundamentals are improving:
Revenue Growth: Double-digit YoY revenue growth (23%+ in each of the last 10 quarters)
Free Cash Flow: $214 million in the past 12 months (~25% FCF margin)
Gross Margins: High and improving
Operating Expenses: Slowing, creating operating leverage
Adjusted Earnings: Near breakeven, signaling profitability is in reach
These trends mirror Palantir’s path before its breakout, particularly the shift from high OpEx to better margins and rising free cash flow.
💰 Valuation: Still Underrated
SentinelOne is trading at only 6x sales and 27x free cash flow, despite:
Strong 20%+ expected revenue growth
Analyst EPS estimates of ~$0.50 by 2028
A market cap under $6 billion
It’s significantly cheaper than peers like CrowdStrike and Palo Alto Networks—despite having similar growth and margin profiles.
⚠️ Risks to Consider
Fierce Competition: Cybersecurity is a crowded field. SentinelOne will have to keep innovating to stay relevant.
Market Sentiment: As a high-growth name, it may be hit hard in downturns.
Limited TAM vs. PLTR: The cybersecurity market isn’t as vast as AI data platforms.
🚀 Final Take
With strong recurring revenue, improving profitability, and an attractive valuation, SentinelOne looks poised for a re-rating. While it may not match Palantir’s scale or splash, the setup is strikingly similar.
Rating: Strong Buy
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.