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 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. SXT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SXT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SXT suitable for quality investing!
1. Profitability
1.1 Basic Checks
SXT had positive earnings in the past year.
SXT had a positive operating cash flow in the past year.
Each year in the past 5 years SXT has been profitable.
In the past 5 years SXT always reported a positive cash flow from operatings.
1.2 Ratios
SXT has a better Return On Assets (6.16%) than 85.88% of its industry peers.
SXT's Return On Equity of 11.75% is amongst the best of the industry. SXT outperforms 81.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.39%, SXT is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
SXT had an Average Return On Invested Capital over the past 3 years of 8.07%. This is in line with the industry average of 7.05%.
The last Return On Invested Capital (8.39%) for SXT is above the 3 year average (8.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 11.75% | ||
| ROIC | 8.39% |
ROA(3y)5.97%
ROA(5y)6.2%
ROE(3y)11.57%
ROE(5y)11.82%
ROIC(3y)8.07%
ROIC(5y)8.29%
1.3 Margins
The Profit Margin of SXT (8.01%) is better than 82.35% of its industry peers.
In the last couple of years the Profit Margin of SXT has grown nicely.
The Operating Margin of SXT (12.73%) is better than 70.59% of its industry peers.
SXT's Operating Margin has improved in the last couple of years.
SXT has a Gross Margin of 32.65%. This is in the better half of the industry: SXT outperforms 63.53% of its industry peers.
SXT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 8.01% | ||
| GM | 32.65% |
OM growth 3Y-1.22%
OM growth 5Y6.81%
PM growth 3Y-2.37%
PM growth 5Y5.25%
GM growth 3Y-0.3%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SXT is creating some value.
The number of shares outstanding for SXT has been increased compared to 1 year ago.
Compared to 5 years ago, SXT has less shares outstanding
SXT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.14 indicates that SXT is not in any danger for bankruptcy at the moment.
SXT has a Altman-Z score of 5.14. This is amongst the best in the industry. SXT outperforms 95.29% of its industry peers.
SXT has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as SXT would need 6.47 years to pay back of all of its debts.
SXT has a Debt to FCF ratio of 6.47. This is in the better half of the industry: SXT outperforms 68.24% 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.
The Debt to Equity ratio of SXT (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 5.14 |
ROIC/WACC1
WACC8.38%
2.3 Liquidity
A Current Ratio of 3.55 indicates that SXT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.55, SXT belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
SXT has a Quick Ratio of 1.34. This is a normal value and indicates that SXT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.34, SXT is doing good in the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
SXT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.69%.
Measured over the past 5 years, SXT shows a small growth in Earnings Per Share. The EPS has been growing by 0.34% on average per year.
SXT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
Measured over the past years, SXT shows a small growth in Revenue. The Revenue has been growing by 3.32% on average per year.
EPS 1Y (TTM)7.69%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%8.86%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%1.99%
3.2 Future
The Earnings Per Share is expected to grow by 13.09% on average over the next years. This is quite good.
SXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y8.72%
EPS Next 2Y11.27%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y3.56%
Revenue Next 3Y4.69%
Revenue Next 5YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SXT is valuated quite expensively with a Price/Earnings ratio of 29.54.
SXT's Price/Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 60.00% of the companies in the same industry.
SXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.41, the valuation of SXT can be described as rather expensive.
SXT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, SXT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SXT is valued a bit more expensive than 67.06% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SXT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.43 | ||
| EV/EBITDA | 17.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SXT has an outstanding profitability rating, which may justify a higher PE ratio.
SXT's earnings are expected to grow with 13.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.39
PEG (5Y)88.03
EPS Next 2Y11.27%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.85, SXT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, SXT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of SXT has a limited annual growth rate of 2.28%.
SXT has been paying a dividend for at least 10 years, so it has 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)2.28%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
SXT pays out 55.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
SXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.67%
EPS Next 2Y11.27%
EPS Next 3Y13.09%
90.99
+10.85 (+13.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change-48.62%
Ins Owners1.26%
Ins Owner Change3.22%
Market Cap3.86B
Analysts83.33
Price Target87.21 (-4.15%)
Short Float %1.71%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.65
Dividend Growth(5Y)2.28%
DP55.67%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.22%
Min EPS beat(2)-0.99%
Max EPS beat(2)0.56%
EPS beat(4)2
Avg EPS beat(4)1.07%
Min EPS beat(4)-7.03%
Max EPS beat(4)11.74%
EPS beat(8)3
Avg EPS beat(8)-1.61%
EPS beat(12)6
Avg EPS beat(12)-0.44%
EPS beat(16)10
Avg EPS beat(16)0.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)3.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)0.48%
PT rev (1m)0%
PT rev (3m)-1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 24.41 | ||
| P/S | 2.48 | ||
| P/FCF | 39.43 | ||
| P/OCF | 24.57 | ||
| P/B | 3.64 | ||
| P/tB | 6.06 | ||
| EV/EBITDA | 17.28 |
EPS(TTM)3.08
EY3.38%
EPS(NY)3.73
Fwd EY4.1%
FCF(TTM)2.31
FCFY2.54%
OCF(TTM)3.7
OCFY4.07%
SpS36.69
BVpS25
TBVpS15.02
PEG (NY)3.39
PEG (5Y)88.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 11.75% | ||
| ROCE | 11.31% | ||
| ROIC | 8.39% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 11.3% | ||
| OM | 12.73% | ||
| PM (TTM) | 8.01% | ||
| GM | 32.65% | ||
| FCFM | 6.29% |
ROA(3y)5.97%
ROA(5y)6.2%
ROE(3y)11.57%
ROE(5y)11.82%
ROIC(3y)8.07%
ROIC(5y)8.29%
ROICexc(3y)8.19%
ROICexc(5y)8.42%
ROICexgc(3y)10.89%
ROICexgc(5y)11.48%
ROCE(3y)10.98%
ROCE(5y)11.24%
ROICexcg growth 3Y-4.49%
ROICexcg growth 5Y6.73%
ROICexc growth 3Y-2.36%
ROICexc growth 5Y7.59%
OM growth 3Y-1.22%
OM growth 5Y6.81%
PM growth 3Y-2.37%
PM growth 5Y5.25%
GM growth 3Y-0.3%
GM growth 5Y0.81%
F-Score7
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 98.15% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 60.78% | ||
| Profit Quality | 78.56% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 5.14 |
F-Score7
WACC8.38%
ROIC/WACC1
Cap/Depr(3y)133.77%
Cap/Depr(5y)124.67%
Cap/Sales(3y)5.12%
Cap/Sales(5y)4.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%8.86%
EPS Next Y8.72%
EPS Next 2Y11.27%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%1.99%
Revenue Next Year2.73%
Revenue Next 2Y3.56%
Revenue Next 3Y4.69%
Revenue Next 5YN/A
EBIT growth 1Y8.39%
EBIT growth 3Y2.83%
EBIT growth 5Y10.36%
EBIT Next Year25.66%
EBIT Next 3Y20.15%
EBIT Next 5YN/A
FCF growth 1Y19.69%
FCF growth 3Y5.07%
FCF growth 5Y-6.64%
OCF growth 1Y-7.39%
OCF growth 3Y2.67%
OCF growth 5Y-2.37%