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

Last update: Feb 14, 2024

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.

Valuation Examination for NYSE:ST

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ST, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 8.96, which indicates a very decent valuation of ST.
Based on the Price/Earnings ratio, ST is valued cheaper than 94.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.01. ST is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.92 indicates a rather cheap valuation of ST.
Based on the Price/Forward Earnings ratio, ST is valued cheaply inside the industry as 96.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ST to the average of the S&P500 Index (21.13), we can say ST is valued rather cheaply.
88.37% of the companies in the same industry are more expensive than ST, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ST indicates a rather cheap valuation: ST is cheaper than 84.88% of the companies listed 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.
A more expensive valuation may be justified as ST's earnings are expected to grow with 16.42% in the coming years.

Understanding NYSE:ST's Profitability

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 5 is noteworthy for profitability:

ST's Return On Assets of -0.05% is fine compared to the rest of the industry. ST outperforms 62.79% of its industry peers.
Looking at the Return On Equity, with a value of -0.13%, ST is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
ST has a Return On Invested Capital of 6.43%. This is in the better half of the industry: ST outperforms 73.26% of its industry peers.
The Operating Margin of ST (13.76%) is better than 83.72% of its industry peers.
With a decent Gross Margin value of 31.11%, ST is doing good in the industry, outperforming 72.09% of the companies in the same industry.

How do we evaluate the 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 5 out of 10:

Looking at the Debt to FCF ratio, with a value of 12.49, ST is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
ST has a Current Ratio of 2.55. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST's Current ratio of 2.55 is fine compared to the rest of the industry. ST outperforms 67.44% of its industry peers.
ST has a Quick ratio of 1.69. This is in the better half of the industry: ST outperforms 62.79% of its industry peers.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ST has earned a 4 for growth:

Based on estimates for the next years, ST will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.08% on average per year.
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.
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.