NYSE:ST: good value for what you're paying.

Last update: Oct 4, 2023

Discover SENSATA TECHNOLOGIES HOLDING (NYSE:ST)—an undervalued stock our stock screener has picked out. NYSE:ST demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Analysis for NYSE:ST

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:

Based on the Price/Earnings ratio of 10.16, the valuation of ST can be described as reasonable.
Based on the Price/Earnings ratio, ST is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ST to the average of the S&P500 Index (25.11), we can say ST is valued rather cheaply.
The Price/Forward Earnings ratio is 8.73, which indicates a very decent valuation of ST.
Based on the Price/Forward Earnings ratio, ST is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
ST is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.41, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ST is valued cheaper than 88.51% of the companies 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.

What does the Profitability looks like for NYSE:ST

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ST, the assigned 7 is noteworthy for profitability:

With a decent Return On Assets value of 4.63%, ST is doing good in the industry, outperforming 77.01% of the companies in the same industry.
ST's Return On Equity of 12.12% is amongst the best of the industry. ST outperforms 80.46% of its industry peers.
ST's Return On Invested Capital of 6.70% is fine compared to the rest of the industry. ST outperforms 74.71% 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.
ST's Profit Margin of 9.50% is amongst the best of the industry. ST outperforms 83.91% of its industry peers.
Looking at the Operating Margin, with a value of 14.81%, ST belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
With a decent Gross Margin value of 32.30%, ST is doing good in the industry, outperforming 77.01% of the companies in the same industry.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ST, the assigned 6 for health provides valuable insights:

ST has a better Debt to FCF ratio (10.23) than 77.01% of its industry peers.
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 72.41% of the companies in the same industry.
A Quick Ratio of 2.06 indicates that ST has no problem at all paying its short term obligations.
The Quick ratio of ST (2.06) is better than 72.41% of its industry peers.

Unpacking NYSE:ST's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ST has achieved a 5 out of 10:

The Earnings Per Share has grown by an nice 10.45% over the past year.
ST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.88% yearly.
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.

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.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.