When you look at NYSE:ST, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Dec 13, 2023

Discover SENSATA TECHNOLOGIES HOLDING (NYSE:ST), an undervalued stock highlighted by our stock screener. NYSE:ST showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: NYSE:ST

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ST boasts a 8 out of 10:

ST is valuated reasonably with a Price/Earnings ratio of 8.97.
Based on the Price/Earnings ratio, ST is valued cheaper than 93.02% of the companies in the same industry.
ST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.87.
Based on the Price/Forward Earnings ratio of 8.21, the valuation of ST can be described as reasonable.
97.67% of the companies in the same industry are more expensive than ST, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ST to the average of the S&P500 Index (20.46), we can say ST is valued rather cheaply.
90.70% of the companies in the same industry are more expensive than ST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ST is valued cheaper than 89.53% 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.

Profitability Insights: 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 6 out of 10:

ST has a Return On Assets of 3.71%. This is in the better half of the industry: ST outperforms 75.58% of its industry peers.
ST has a Return On Equity of 9.66%. This is in the better half of the industry: ST outperforms 76.74% of its industry peers.
ST's Return On Invested Capital of 6.66% is fine compared to the rest of the industry. ST outperforms 73.26% 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.
With an excellent Profit Margin value of 7.64%, ST belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
Looking at the Operating Margin, with a value of 14.79%, ST belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
The Gross Margin of ST (32.18%) is better than 74.42% of its industry peers.

Understanding NYSE:ST's 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:

With a decent Debt to FCF ratio value of 9.48, ST is doing good in the industry, outperforming 73.26% of the companies in the same industry.
ST has a Current Ratio of 2.86. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.86, ST is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
ST has a Quick Ratio of 2.07. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST has a Quick ratio of 2.07. This is in the better half of the industry: ST outperforms 75.58% of its industry peers.

Growth Insights: NYSE:ST

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ST, the assigned 5 reflects its growth potential:

ST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.91%, which is quite good.
ST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.74% 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.

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

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.