NYSE:ST, an undervalued stock with good fundamentals.

Last update: Sep 27, 2023

Consider SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as a top value stock, identified by our stock screening tool. NYSE:ST shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Exploring NYSE:ST's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ST has achieved a 9 out of 10:

A Price/Earnings ratio of 9.78 indicates a reasonable valuation of ST.
ST's Price/Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 93.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.55, ST is valued rather cheaply.
ST is valuated reasonably with a Price/Forward Earnings ratio of 8.40.
Based on the Price/Forward Earnings ratio, ST is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 18.74. ST is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaper than 89.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ST is valued cheaper than 87.21% of the companies in the same industry.
The 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.
A more expensive valuation may be justified as ST's earnings are expected to grow with 13.23% in the coming years.

Exploring NYSE:ST's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ST has earned a 7 out of 10:

Looking at the Return On Assets, with a value of 4.63%, ST is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
ST has a better Return On Equity (12.12%) than 80.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.70%, ST is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
The 3 year average ROIC (6.26%) for ST is below the current ROIC(6.70%), indicating increased profibility in the last year.
The Profit Margin of ST (9.50%) is better than 83.72% of its industry peers.
ST's Operating Margin of 14.81% is amongst the best of the industry. ST outperforms 83.72% of its industry peers.
With a decent Gross Margin value of 32.30%, ST is doing good in the industry, outperforming 76.74% of the companies in the same industry.

Evaluating Health: NYSE:ST

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ST has received a 6 out of 10:

Looking at the Debt to FCF ratio, with a value of 10.23, ST is in the better half of 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.
With a decent Quick ratio value of 2.06, ST is doing good in the industry, outperforming 72.09% of the companies in the same industry.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ST scores a 5 out of 10:

ST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.45%, which is quite good.
The Earnings Per Share is expected to grow by 11.88% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of ST for a complete fundamental analysis.

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.