NYSE:ST appears to be flying under the radar despite its strong fundamentals.

Last update: Oct 9, 2023

Our stock screening tool has pinpointed SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as an undervalued stock. NYSE:ST maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Valuation: NYSE:ST

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:

ST is valuated reasonably with a Price/Earnings ratio of 10.09.
93.10% of the companies in the same industry are more expensive than ST, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.46. ST is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.67 indicates a reasonable valuation of ST.
Based on the Price/Forward Earnings ratio, ST is valued cheaper than 96.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.67, ST is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaper than 91.95% 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 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.
ST has a very decent profitability rating, which 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.

Evaluating Profitability: NYSE:ST

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'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.
Looking at the Return On Invested Capital, with a value of 6.70%, ST is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
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 has a better Profit Margin (9.50%) than 83.91% of its industry peers.
With an excellent Operating Margin value of 14.81%, ST belongs to the best 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.

How do we evaluate the Health for NYSE:ST?

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 Debt to FCF ratio of 10.23. This is in the better half of the industry: ST outperforms 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.
ST's Current ratio of 2.81 is fine compared to the rest of the industry. ST outperforms 72.41% 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 has a Quick ratio of 2.06. This is in the better half of the industry: ST outperforms 72.41% of its industry peers.

Evaluating Growth: NYSE:ST

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ST has earned a 5 for growth:

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.
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.

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.