For those who appreciate value investing, NYSE:ST is a compelling option with its solid fundamentals.

Last update: Jan 3, 2024

SENSATA TECHNOLOGIES HOLDING (NYSE:ST) has caught the attention of our stock screener as a great value stock. NYSE:ST excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Looking at the Valuation

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 8 out of 10:

Based on the Price/Earnings ratio of 9.87, the valuation of ST can be described as reasonable.
Based on the Price/Earnings ratio, ST is valued cheaper than 93.02% of the companies in the same industry.
ST is valuated cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.04, which indicates a very decent 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 97.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.90. 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 90.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ST is valued cheaper than 87.21% of the companies in the same industry.
The 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.

Profitability Assessment of 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 6 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 3.71%, ST is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
ST has a better Return On Equity (9.66%) than 76.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.66%, ST is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
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 better Profit Margin (7.64%) than 80.23% of its industry peers.
The Operating Margin of ST (14.79%) is better than 86.05% of its industry peers.
The Gross Margin of ST (32.18%) is better than 74.42% of its industry peers.

Health Examination for NYSE:ST

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ST, the assigned 6 reflects its health status:

ST's Debt to FCF ratio of 9.48 is fine compared to the rest of the industry. ST outperforms 73.26% of its industry peers.
A Current Ratio of 2.86 indicates that ST has no problem at all paying its short term obligations.
The Current ratio of ST (2.86) is better than 72.09% 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 75.58% of its industry peers.

Evaluating Growth: NYSE:ST

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ST was assigned a score of 5 for growth:

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 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.

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