NYSE:ST is an undervalued gem with solid fundamentals.

Last update: Sep 28, 2023

SENSATA TECHNOLOGIES HOLDING (NYSE:ST) has caught the attention of our stock screener as a great value stock. NYSE:ST excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

How We Gauge Valuation for NYSE:ST

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:ST has received a 9 out of 10:

With a Price/Earnings ratio of 10.05, the valuation of ST can be described as very reasonable.
Based on the Price/Earnings ratio, ST is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.59. ST is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.64, the valuation of ST can be described as reasonable.
Based on the Price/Forward Earnings ratio, ST is valued cheaper than 97.67% of the companies in the same industry.
ST is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.75, which is the current average of the S&P500 Index.
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.
ST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ST is 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.
ST's earnings are expected to grow with 13.23% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:ST's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ST, the assigned 7 is a significant indicator of profitability:

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

Understanding NYSE:ST's Health Score

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:

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.
With a decent Current ratio value of 2.81, ST is doing good in the industry, outperforming 72.09% of the companies in the same industry.
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.

Unpacking NYSE:ST's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ST was assigned a score of 5 for growth:

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.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of ST contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.