NYSE:ST stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 24, 2024

Our stock screener has singled out SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as a stellar value proposition. NYSE:ST not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ST scores a 8 out of 10:

With a Price/Earnings ratio of 9.40, the valuation of ST can be described as very reasonable.
Based on the Price/Earnings ratio, ST is valued cheaper than 93.10% 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.
Based on the Price/Forward Earnings ratio of 8.60, the valuation of ST can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 97.70% 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 89.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ST is valued cheaply inside the industry as 89.66% 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.
ST has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NYSE:ST

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ST scores a 6 out of 10:

ST's Return On Assets of 3.71% is fine compared to the rest of the industry. ST outperforms 74.71% of its industry peers.
ST has a Return On Equity of 9.66%. This is in the better half of the industry: ST outperforms 77.01% of its industry peers.
ST has a better Return On Invested Capital (6.66%) than 73.56% 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.
Looking at the Profit Margin, with a value of 7.64%, ST belongs to the top of the industry, outperforming 80.46% 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 86.21% of the companies in the same industry.
ST has a better Gross Margin (32.18%) than 74.71% of its industry peers.

Assessing Health for NYSE:ST

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ST has achieved a 6 out of 10:

Looking at the Debt to FCF ratio, with a value of 9.48, ST is in the better half of the industry, outperforming 73.56% 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.
Looking at the Current ratio, with a value of 2.86, ST is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
A Quick Ratio of 2.07 indicates that ST has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.07, ST is doing good in the industry, outperforming 75.86% of the companies in the same industry.

Analyzing Growth Metrics

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.
Based on estimates for the next years, ST will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.74% on average per year.
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.

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.