SENSIENT TECHNOLOGIES CORP (SXT) Stock Fundamental Analysis
NYSE:SXT - New York Stock Exchange, Inc. - US81725T1007 - Common Stock - Currency: USD
SXT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. SXT has only an average score on both its financial health and profitability. While showing a medium growth rate, SXT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SXT had positive earnings in the past year.
In the past year SXT had a positive cash flow from operations.
Each year in the past 5 years SXT has been profitable.
Each year in the past 5 years SXT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.34%, SXT is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
SXT's Return On Equity of 8.21% is fine compared to the rest of the industry. SXT outperforms 63.86% of its industry peers.
SXT's Return On Invested Capital of 7.99% is fine compared to the rest of the industry. SXT outperforms 78.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SXT is in line with the industry average of 6.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.21% | ||
| ROIC | 7.99% |
ROA(3y)6.18%
ROA(5y)5.91%
ROE(3y)11.87%
ROE(5y)11.33%
ROIC(3y)8.31%
ROIC(5y)7.82%
1.3 Margins
SXT has a better Profit Margin (5.80%) than 66.27% of its industry peers.
In the last couple of years the Profit Margin of SXT has declined.
The Operating Margin of SXT (12.50%) is better than 69.88% of its industry peers.
SXT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.89%, SXT is in line with its industry, outperforming 59.04% of the companies in the same industry.
In the last couple of years the Gross Margin of SXT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.5% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.9% |
OM growth 3Y-0.78%
OM growth 5Y-3.06%
PM growth 3Y-7.95%
PM growth 5Y-10.79%
GM growth 3Y-0.22%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
SXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SXT has been increased compared to 1 year ago.
SXT has less shares outstanding than it did 5 years ago.
SXT has a better debt/assets ratio than last year.
2.2 Solvency
SXT has an Altman-Z score of 4.67. This indicates that SXT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SXT (4.67) is better than 91.57% of its industry peers.
The Debt to FCF ratio of SXT is 4.52, which is a neutral value as it means it would take SXT, 4.52 years of fcf income to pay off all of its debts.
SXT has a Debt to FCF ratio of 4.52. This is in the better half of the industry: SXT outperforms 74.70% of its industry peers.
SXT has a Debt/Equity ratio of 0.58. This is a neutral value indicating SXT is somewhat dependend on debt financing.
SXT has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 4.67 |
ROIC/WACC0.92
WACC8.7%
2.3 Liquidity
SXT has a Current Ratio of 3.74. This indicates that SXT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.74, SXT belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
SXT has a Quick Ratio of 1.47. This is a normal value and indicates that SXT is financially healthy and should not expect problems in meeting its short term obligations.
SXT's Quick ratio of 1.47 is in line compared to the rest of the industry. SXT outperforms 57.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.74 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for SXT have decreased by -5.90% in the last year.
Measured over the past years, SXT shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.16% on average per year.
The Revenue has been growing slightly by 5.10% in the past year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)-5.9%
EPS 3Y0.83%
EPS 5Y-4.16%
EPS Q2Q%6.67%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Sales Q2Q%7.91%
3.2 Future
SXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.61% yearly.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y5.75%
EPS Next 2Y9.22%
EPS Next 3Y10.37%
EPS Next 5Y12.61%
Revenue Next Year5.99%
Revenue Next 2Y4.67%
Revenue Next 3Y4.53%
Revenue Next 5Y5.45%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
SXT is valuated quite expensively with a Price/Earnings ratio of 26.49.
SXT's Price/Earnings ratio is in line with the industry average.
SXT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 22.20, the valuation of SXT can be described as rather expensive.
SXT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 60.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. SXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 22.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SXT is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SXT indicates a somewhat cheap valuation: SXT is cheaper than 61.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.61 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SXT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SXT may justify a higher PE ratio.
PEG (NY)4.61
PEG (5Y)N/A
EPS Next 2Y9.22%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, SXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, SXT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of SXT has a limited annual growth rate of 4.17%.
SXT has paid a dividend for at least 10 years, which is a reliable track record.
SXT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.17%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
78.17% of the earnings are spent on dividend by SXT. This is not a sustainable payout ratio.
SXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.17%
EPS Next 2Y9.22%
EPS Next 3Y10.37%
SENSIENT TECHNOLOGIES CORP
NYSE:SXT (2/4/2025, 8:10:01 PM)
After market: 76.02 0 (0%)76.02
+0.92 (+1.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-1.96%
Ins Owners1.16%
Ins Owner Change1.74%
Market Cap3.22B
Analysts83.33
Price Target87.21 (14.72%)
Short Float %1.46%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.65
Dividend Growth(5Y)4.17%
DP78.17%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.01%
Min EPS beat(2)-7.03%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-1.12%
Min EPS beat(4)-8.19%
Max EPS beat(4)11.74%
EPS beat(8)2
Avg EPS beat(8)-1.98%
EPS beat(12)6
Avg EPS beat(12)-0.46%
EPS beat(16)9
Avg EPS beat(16)0.19%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.15%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-6.78%
Max Revenue beat(4)3.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.12%
Revenue beat(16)7
Avg Revenue beat(16)0.98%
PT rev (1m)-1.16%
PT rev (3m)-1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 22.2 | ||
| P/S | 2.1 | ||
| P/FCF | 22.61 | ||
| P/OCF | 16.21 | ||
| P/B | 2.98 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)2.87
EY3.78%
EPS(NY)3.42
Fwd EY4.5%
FCF(TTM)3.36
FCFY4.42%
OCF(TTM)4.69
OCFY6.17%
SpS36.12
BVpS25.51
TBVpS15.16
PEG (NY)4.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.21% | ||
| ROCE | 10.71% | ||
| ROIC | 7.99% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 10.89% | ||
| OM | 12.5% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.9% | ||
| FCFM | 9.31% |
ROA(3y)6.18%
ROA(5y)5.91%
ROE(3y)11.87%
ROE(5y)11.33%
ROIC(3y)8.31%
ROIC(5y)7.82%
ROICexc(3y)8.44%
ROICexc(5y)7.94%
ROICexgc(3y)11.5%
ROICexgc(5y)10.91%
ROCE(3y)11.23%
ROCE(5y)10.56%
ROICexcg growth 3Y-4.96%
ROICexcg growth 5Y-4.64%
ROICexc growth 3Y-3.13%
ROICexc growth 5Y-4%
OM growth 3Y-0.78%
OM growth 5Y-3.06%
PM growth 3Y-7.95%
PM growth 5Y-10.79%
GM growth 3Y-0.22%
GM growth 5Y-1.09%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 94.29% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.17% | ||
| Profit Quality | 160.49% | ||
| Current Ratio | 3.74 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 4.67 |
F-Score5
WACC8.7%
ROIC/WACC0.92
Cap/Depr(3y)139.98%
Cap/Depr(5y)119.25%
Cap/Sales(3y)5.32%
Cap/Sales(5y)4.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.9%
EPS 3Y0.83%
EPS 5Y-4.16%
EPS Q2Q%6.67%
EPS Next Y5.75%
EPS Next 2Y9.22%
EPS Next 3Y10.37%
EPS Next 5Y12.61%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Sales Q2Q%7.91%
Revenue Next Year5.99%
Revenue Next 2Y4.67%
Revenue Next 3Y4.53%
Revenue Next 5Y5.45%
EBIT growth 1Y3.02%
EBIT growth 3Y2.22%
EBIT growth 5Y-2.11%
EBIT Next Year39.78%
EBIT Next 3Y17.87%
EBIT Next 5Y17.02%
FCF growth 1Y560.62%
FCF growth 3Y-21.1%
FCF growth 5Y20.06%
OCF growth 1Y351.78%
OCF growth 3Y-8.12%
OCF growth 5Y15.24%