SENSATA TECHNOLOGIES HOLDING (ST) Stock Fundamental Analysis
NYSE:ST - New York Stock Exchange, Inc. - GB00BFMBMT84 - Common Stock - Currency: USD
ST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. ST has only an average score on both its financial health and profitability. ST scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
ST had positive earnings in the past year.
ST had a positive operating cash flow in the past year.
Of the past 5 years ST 4 years were profitable.
In the past 5 years ST always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.80%, ST is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.44%, ST is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.51%, ST is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ST is below the industry average of 10.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 4.44% | ||
| ROIC | 5.51% |
ROA(3y)1.77%
ROA(5y)2.32%
ROE(3y)4.77%
ROE(5y)6.42%
ROIC(3y)6.08%
ROIC(5y)5.96%
1.3 Margins
With a decent Profit Margin value of 3.27%, ST is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ST's Profit Margin has declined in the last couple of years.
ST has a Operating Margin of 11.41%. This is amongst the best in the industry. ST outperforms 81.52% of its industry peers.
ST's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.39%, ST is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
ST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.41% | ||
| PM (TTM) | 3.27% | ||
| GM | 29.39% |
OM growth 3Y-12.39%
OM growth 5Y-8.4%
PM growth 3Y-29.98%
PM growth 5Y-16.8%
GM growth 3Y-4.23%
GM growth 5Y-3.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ST is destroying value.
ST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ST has been reduced compared to 5 years ago.
The debt/assets ratio for ST is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ST is 8.14, which is on the high side as it means it would take ST, 8.14 years of fcf income to pay off all of its debts.
ST has a Debt to FCF ratio of 8.14. This is in the better half of the industry: ST outperforms 68.48% of its industry peers.
ST has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
ST's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. ST is outperformed by 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC6.75%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ST has no problem at all paying its short term obligations.
The Current ratio of ST (2.85) is better than 73.91% of its industry peers.
A Quick Ratio of 1.99 indicates that ST should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.99, ST is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
ST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.71%.
ST shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
The Revenue has decreased by -2.99% in the past year.
ST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.65% yearly.
EPS 1Y (TTM)-4.71%
EPS 3Y-1.04%
EPS 5Y-0.74%
EPS Q2Q%-6.17%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y0.97%
Revenue growth 5Y2.65%
Sales Q2Q%-8.54%
3.2 Future
ST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-3.52%
EPS Next 2Y3.19%
EPS Next 3Y4.64%
EPS Next 5Y8.1%
Revenue Next Year-6.28%
Revenue Next 2Y-0.62%
Revenue Next 3Y1.13%
Revenue Next 5Y4.23%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.37, 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 96.74% 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 29.36.
With a Price/Forward Earnings ratio of 8.67, the valuation of ST can be described as very reasonable.
ST's Price/Forward Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 93.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, ST is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
ST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ST is cheaper than 89.13% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ST indicates a rather cheap valuation: ST is cheaper than 92.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 9.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.19%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
ST has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 3.56, ST pays a better dividend. On top of this ST pays more dividend than 92.39% of the companies listed in the same industry.
ST's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
ST has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
56.20% of the earnings are spent on dividend by ST. This is a bit on the high side, but may be sustainable.
DP56.2%
EPS Next 2Y3.19%
EPS Next 3Y4.64%
28.78
-0.6 (-2.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.02%
Inst Owner Change-0.72%
Ins Owners0.38%
Ins Owner Change1.08%
Market Cap4.30B
Analysts73.6
Price Target36.84 (28.01%)
Short Float %2.71%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP56.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.89%
Min EPS beat(2)-2.34%
Max EPS beat(2)-1.44%
EPS beat(4)1
Avg EPS beat(4)-1.31%
Min EPS beat(4)-2.75%
Max EPS beat(4)1.29%
EPS beat(8)2
Avg EPS beat(8)-1.62%
EPS beat(12)3
Avg EPS beat(12)-1.12%
EPS beat(16)6
Avg EPS beat(16)0.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-1.7%
Revenue beat(12)1
Avg Revenue beat(12)-1.6%
Revenue beat(16)2
Avg Revenue beat(16)-1.21%
PT rev (1m)-7.65%
PT rev (3m)-15.8%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-25.99%
EPS NY rev (1m)-3.86%
EPS NY rev (3m)-6.5%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-17.14%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.09 | ||
| P/FCF | 10.95 | ||
| P/OCF | 7.8 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.19 |
EPS(TTM)3.44
EY11.95%
EPS(NY)3.32
Fwd EY11.53%
FCF(TTM)2.63
FCFY9.13%
OCF(TTM)3.69
OCFY12.81%
SpS26.29
BVpS19.33
TBVpS-6.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 4.44% | ||
| ROCE | 6.97% | ||
| ROIC | 5.51% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 18.07% | ||
| OM | 11.41% | ||
| PM (TTM) | 3.27% | ||
| GM | 29.39% | ||
| FCFM | 9.99% |
ROA(3y)1.77%
ROA(5y)2.32%
ROE(3y)4.77%
ROE(5y)6.42%
ROIC(3y)6.08%
ROIC(5y)5.96%
ROICexc(3y)6.84%
ROICexc(5y)7.2%
ROICexgc(3y)24.69%
ROICexgc(5y)30.38%
ROCE(3y)7.69%
ROCE(5y)7.54%
ROICexcg growth 3Y-17.01%
ROICexcg growth 5Y-10.17%
ROICexc growth 3Y-10.4%
ROICexc growth 5Y-7.34%
OM growth 3Y-12.39%
OM growth 5Y-8.4%
PM growth 3Y-29.98%
PM growth 5Y-16.8%
GM growth 3Y-4.23%
GM growth 5Y-3.04%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 50.68% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.43% | ||
| Profit Quality | 305.89% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | N/A |
F-Score7
WACC6.75%
ROIC/WACC0.82
Cap/Depr(3y)54.74%
Cap/Depr(5y)52.35%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.71%
EPS 3Y-1.04%
EPS 5Y-0.74%
EPS Q2Q%-6.17%
EPS Next Y-3.52%
EPS Next 2Y3.19%
EPS Next 3Y4.64%
EPS Next 5Y8.1%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y0.97%
Revenue growth 5Y2.65%
Sales Q2Q%-8.54%
Revenue Next Year-6.28%
Revenue Next 2Y-0.62%
Revenue Next 3Y1.13%
Revenue Next 5Y4.23%
EBIT growth 1Y-19.58%
EBIT growth 3Y-11.54%
EBIT growth 5Y-5.97%
EBIT Next Year15.76%
EBIT Next 3Y10.78%
EBIT Next 5Y9.97%
FCF growth 1Y44.45%
FCF growth 3Y-1.38%
FCF growth 5Y-3.03%
OCF growth 1Y20.77%
OCF growth 3Y-0.16%
OCF growth 5Y-2.3%