NYSE:ST is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 1, 2023

Uncover the hidden value in SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as our stock screening tool recommends it as an undervalued choice. NYSE:ST maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: 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:

ST is valuated reasonably with a Price/Earnings ratio of 8.62.
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.
Compared to an average S&P500 Price/Earnings ratio of 22.86, ST is valued rather cheaply.
A Price/Forward Earnings ratio of 7.40 indicates a rather cheap valuation of ST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 96.55% of the companies listed in the same industry.
ST is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.20, 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.
89.66% of the companies in the same industry are more expensive than ST, based on the Price/Free Cash Flow ratio.
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.
A more expensive valuation may be justified as ST's earnings are expected to grow with 12.97% in the coming years.

Assessing Profitability 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 6 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 4.63%, ST is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
ST's Return On Equity of 12.12% is fine compared to the rest of the industry. ST outperforms 79.31% 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 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 Profit Margin of 9.50%. This is amongst the best in 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.
Looking at the Gross Margin, with a value of 32.30%, ST is in the better half of the industry, outperforming 75.86% of the companies in the same industry.

Health Insights: NYSE:ST

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ST was assigned a score of 6 for health:

ST has a better Altman-Z score (1.97) than 60.92% of its industry peers.
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 has a better Current ratio (2.81) than 73.56% 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.
The Quick ratio of ST (2.06) is better than 72.41% of its industry peers.

Assessing Growth for NYSE:ST

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 11.22% yearly.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of ST

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.