Don't overlook NYSE:ST—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Jun 3, 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 Analysis for NYSE:ST

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ST was assigned a score of 7 for valuation:

Based on the Price/Earnings ratio of 11.54, the valuation of ST can be described as reasonable.
Based on the Price/Earnings ratio, ST is valued cheaply inside the industry as 91.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.06, ST is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.53, the valuation of ST can be described as reasonable.
93.02% of the companies in the same industry are more expensive than ST, based on the Price/Forward Earnings ratio.
ST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.05.
87.21% of the companies in the same industry are more expensive than ST, based on the Enterprise Value to EBITDA ratio.
ST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ST is cheaper than 80.23% of the companies in the same industry.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ST has achieved a 5:

ST has a Return On Assets of -0.19%. This is in the better half of the industry: ST outperforms 66.28% of its industry peers.
ST has a better Return On Equity (-0.48%) than 66.28% of its industry peers.
ST has a Return On Invested Capital of 6.35%. This is in the better half of the industry: ST outperforms 70.93% of its industry peers.
ST has a better Operating Margin (13.50%) than 81.40% of its industry peers.
Looking at the Gross Margin, with a value of 30.79%, ST is in the better half of the industry, outperforming 69.77% of the companies in the same industry.

How We Gauge Health for NYSE:ST

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 5 for health provides valuable insights:

ST has a Debt to FCF ratio of 12.30. This is in the better half of the industry: ST outperforms 68.60% of its industry peers.
ST has a Current Ratio of 2.64. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST has a better Current ratio (2.64) than 69.77% of its industry peers.
ST's Quick ratio of 1.74 is fine compared to the rest of the industry. ST outperforms 61.63% of its industry peers.

Unpacking NYSE:ST's Growth Rating

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:

The Earnings Per Share is expected to grow by 9.07% on average over the next years. This is quite good.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of ST for a complete fundamental analysis.

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.