Senstar Technologies' Growth and Financial Performance Under Scrutiny: Should You Add It to Your Watchlist?

Senstar Technologies (NASDAQ:SNT) is a company with revenues and profits. It has experienced a 53% annual growth in earnings per share over the last three years. EBIT margins have grown from 2.9% to 14% in the last 12 months, and revenues are on an upwards trend. The company has a market capitalization of $108m and is worth checking for cash and debt. Investors should also consider the remuneration policies to ensure alignment between the CEO and shareholders.

Senstar Technologies (NASDAQ: SNT) reported robust financial results for the second quarter of 2025, highlighting significant growth in revenue and margin expansion. The company's revenue increased by 16.2% year-over-year to $9.7 million, driven by strong performance across its core verticals and geographies [1].

The company's gross margin improved to 66.1%, up from 63.2% in the previous year, reflecting the success of its cost optimization strategies and focus on high-value added solutions. This margin expansion, combined with double-digit revenue growth, resulted in EBITDA of $1.1 million and a margin of 11.8%, a 161 basis point increase from the previous year [1].

Senstar Technologies' earnings per share (EPS) increased to $0.05, up from $0.02 in the previous year, indicating a 53% annual growth over the last three years. The company's market capitalization stands at $108.24 million, and it maintains a strong cash position with $21.9 million and zero debt [1].

The company's strategic emphasis on technological innovation and market expansion has been instrumental in its growth. Fabien Haubert, CEO of Senstar Technologies, highlighted the company's commitment to innovation and market expansion, noting that revenue for its four core verticals increased by 27% year-over-year [1].

Looking ahead, Senstar Technologies plans to expand its business development team and focus on acquiring new customers. The company aims to continue investing in technological innovation, particularly in the renewable energy, data centers, and utilities sectors. The forward guidance projects an EPS of $0.06 for both FY2025 and FY2026, with revenue forecasts of $37 million and $37.74 million, respectively [1].

The company's stock experienced a 6.42% increase during regular trading hours following the earnings release, closing at $4.36, although it saw a slight decline of 1.83% in aftermarket trading. The stock has delivered an impressive 150.59% return over the past year, with a P/E ratio of 23.83 and revenue growth of 8.36% in the last twelve months [1].

Investors should also consider the remuneration policies to ensure alignment between the CEO and shareholders. The company's strong financial position and commitment to innovation position it well for future opportunities, with a robust financial health score of 3.21 and a current ratio of 3.43 indicating strong liquidity [1].

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-senstar-technologies-q2-2025-sees-revenue-growth-93CH-3854964