NYSE:ST stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Oct 6, 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.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ST was assigned a score of 9 for valuation:

Based on the Price/Earnings ratio of 9.92, the valuation of ST can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 93.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ST to the average of the S&P500 Index (25.26), we can say ST is valued rather cheaply.
The Price/Forward Earnings ratio is 8.53, which indicates a very decent valuation of ST.
96.55% of the companies in the same industry are more expensive than ST, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.51. ST is valued rather cheaply when compared to this.
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 cheaply inside the industry as 87.36% of the companies are valued more expensively.
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.

Profitability Assessment of NYSE:ST

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:

ST's Return On Assets of 4.63% is fine compared to the rest of the industry. ST outperforms 77.01% of its industry peers.
ST has a better Return On Equity (12.12%) than 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.
ST has a Operating Margin of 14.81%. This is amongst the best in the industry. ST outperforms 83.91% of its industry peers.
ST has a better Gross Margin (32.30%) than 77.01% of its industry peers.

What does the Health looks like for NYSE:ST

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ST has earned a 6 out of 10:

The Debt to FCF ratio of ST (10.23) is better than 77.01% of its industry peers.
A Current Ratio of 2.81 indicates that ST has no problem at all paying its short term obligations.
The Current ratio of ST (2.81) is better than 72.41% of its industry peers.
A Quick Ratio of 2.06 indicates that ST has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.06, ST is doing good in the industry, outperforming 72.41% of the companies in the same industry.

A Closer Look at Growth for NYSE:ST

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.
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.
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.
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.

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

Disclaimer

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.