NYSE:ST is probably undervalued for the fundamentals it is displaying.

Last update: Mar 7, 2024

SENSATA TECHNOLOGIES HOLDING (NYSE:ST) was identified as a decent value stock by our stock screener. NYSE:ST scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Understanding NYSE:ST's Valuation Score

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:

Based on the Price/Earnings ratio of 9.53, the valuation of ST can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 94.12% of the companies listed in the same industry.
ST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.81.
A Price/Forward Earnings ratio of 8.42 indicates a reasonable valuation of ST.
Based on the Price/Forward Earnings ratio, ST is valued cheaper than 96.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.87. ST is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaper than 88.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ST is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
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.

Profitability Examination for 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 5 is a significant indicator of profitability:

ST has a Return On Assets of -0.05%. This is in the better half of the industry: ST outperforms 64.71% of its industry peers.
ST's Return On Equity of -0.13% is fine compared to the rest of the industry. ST outperforms 65.88% of its industry peers.
ST has a better Return On Invested Capital (6.43%) than 71.76% of its industry peers.
The Operating Margin of ST (13.76%) is better than 82.35% of its industry peers.
Looking at the Gross Margin, with a value of 31.11%, ST is in the better half of the industry, outperforming 72.94% of the companies in the same industry.

Health Examination for NYSE:ST

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ST scores a 5 out of 10:

With a decent Debt to FCF ratio value of 12.49, ST is doing good in the industry, outperforming 72.94% of the companies in the same industry.
A Current Ratio of 2.55 indicates that ST has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.55, ST is doing good in the industry, outperforming 68.24% of the companies in the same industry.
ST has a Quick ratio of 1.69. This is in the better half of the industry: ST outperforms 61.18% of its industry peers.

Evaluating Growth: NYSE:ST

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ST boasts a 4 out of 10:

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.
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.

Our latest full fundamental report of ST contains the most current fundamental analsysis.

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.