In a market where value is scarce, NYSE:ST offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 25, 2023

Our stock screening tool has identified SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as an undervalued gem with strong fundamentals. NYSE:ST boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Understanding NYSE:ST's Valuation Score

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ST, the assigned 9 reflects its valuation:

The Price/Earnings ratio is 9.96, which indicates a very decent valuation of ST.
93.02% of the companies in the same industry are more expensive than ST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ST to the average of the S&P500 Index (25.89), we can say ST is valued rather cheaply.
The Price/Forward Earnings ratio is 8.56, which indicates a very decent valuation of ST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 97.67% of the companies listed in the same industry.
ST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.97.
ST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ST is cheaper than 89.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ST indicates a rather cheap valuation: ST is cheaper than 87.21% of the companies listed in the same industry.
ST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ST may justify a higher PE ratio.
ST's earnings are expected to grow with 13.23% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:ST's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ST was assigned a score of 7 for profitability:

ST's Return On Assets of 4.63% is fine compared to the rest of the industry. ST outperforms 76.74% of its industry peers.
ST has a Return On Equity of 12.12%. This is amongst the best in the industry. ST outperforms 80.23% of its industry peers.
ST has a better Return On Invested Capital (6.70%) than 74.42% of its industry peers.
The last Return On Invested Capital (6.70%) for ST is above the 3 year average (6.26%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 9.50%, ST belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
ST has a Operating Margin of 14.81%. This is amongst the best in the industry. ST outperforms 83.72% of its industry peers.
ST has a Gross Margin of 32.30%. This is in the better half of the industry: ST outperforms 76.74% of its industry peers.

What does the Health looks like for NYSE:ST

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ST has achieved a 6 out of 10:

With a decent Debt to FCF ratio value of 10.23, ST is doing good in the industry, outperforming 76.74% of the companies in the same industry.
ST has a Current Ratio of 2.81. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST has a Current ratio of 2.81. This is in the better half of the industry: ST outperforms 72.09% of its industry peers.
ST has a Quick Ratio of 2.06. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST's Quick ratio of 2.06 is fine compared to the rest of the industry. ST outperforms 72.09% of its industry peers.

Understanding NYSE:ST's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ST has received a 5 out of 10:

The Earnings Per Share has grown by an nice 10.45% over the past year.
Based on estimates for the next years, ST will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.88% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of ST

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.