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

Last update: Nov 22, 2023

SENSATA TECHNOLOGIES HOLDING (NYSE:ST) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:ST showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Unpacking NYSE:ST's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ST has achieved a 9 out of 10:

With a Price/Earnings ratio of 8.46, the valuation of ST can be described as very reasonable.
94.19% of the companies in the same industry are more expensive than ST, based on the Price/Earnings ratio.
ST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.39.
ST is valuated cheaply with a Price/Forward Earnings ratio of 7.39.
Based on the Price/Forward Earnings ratio, ST is valued cheaper than 96.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ST to the average of the S&P500 Index (19.49), we can say ST is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaper than 90.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ST is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
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.
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:

ST has a better Return On Assets (3.71%) than 76.74% of its industry peers.
Looking at the Return On Equity, with a value of 9.66%, ST is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
ST's Return On Invested Capital of 6.66% is fine compared to the rest of the industry. ST outperforms 74.42% of its industry peers.
The last Return On Invested Capital (6.66%) for ST is above the 3 year average (6.26%), which is a sign of increasing profitability.
ST has a Profit Margin of 7.64%. This is amongst the best in the industry. ST outperforms 81.40% of its industry peers.
With an excellent Operating Margin value of 14.79%, ST belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
ST has a Gross Margin of 32.18%. This is in the better half of the industry: ST outperforms 74.42% of its industry peers.

Evaluating Health: 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:

Looking at the Debt to FCF ratio, with a value of 9.48, ST is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
A Current Ratio of 2.86 indicates that ST has no problem at all paying its short term obligations.
ST has a better Current ratio (2.86) than 70.93% of its industry peers.
A Quick Ratio of 2.07 indicates that ST has no problem at all paying its short term obligations.
The Quick ratio of ST (2.07) is better than 73.26% of its industry peers.

What does the Growth looks like for NYSE:ST

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ST scores a 5 out of 10:

The Earnings Per Share has grown by an nice 12.91% 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.
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.

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

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

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.