SENSIENT TECHNOLOGIES CORP (SXT)
US81725T1007 - Common Stock
Taking everything into account, SXT scores 5 out of 10 in our fundamental rating. SXT was compared to 83 industry peers in the Chemicals industry. SXT has an excellent financial health rating, but there are some minor concerns on its profitability. SXT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SXT was profitable.
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
SXT has a better Return On Assets (4.34%) than 66.27% of its industry peers.
With a decent Return On Equity value of 8.21%, SXT is doing good in the industry, outperforming 63.86% of the companies in the same industry.
SXT has a better Return On Invested Capital (7.99%) than 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 7.24%.
| 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
The Profit Margin of SXT (5.80%) is better than 63.86% of its industry peers.
SXT's Profit Margin has declined in the last couple of years.
SXT's Operating Margin of 12.50% is fine compared to the rest of the industry. SXT outperforms 69.88% of its industry peers.
SXT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 31.89%, SXT is doing good in the industry, outperforming 60.24% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SXT is still creating some 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.
Compared to 1 year ago, SXT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.62 indicates that SXT is not in any danger for bankruptcy at the moment.
SXT has a Altman-Z score of 4.62. This is amongst the best in the industry. SXT outperforms 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.
With a decent Debt to FCF ratio value of 4.52, SXT is doing good in the industry, outperforming 71.08% of the companies in the same industry.
SXT has a Debt/Equity ratio of 0.58. This is a neutral value indicating SXT is somewhat dependend on debt financing.
SXT's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. SXT outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 4.62 |
ROIC/WACC0.99
WACC8.11%
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.
SXT has a better Current ratio (3.74) than 89.16% of its industry peers.
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.
With a Quick ratio value of 1.47, SXT perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -4.16% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.61% 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 5.45% yearly.
EPS Next Y5.75%
EPS Next 2Y10.11%
EPS Next 3Y10.85%
EPS Next 5Y12.61%
Revenue Next Year6.06%
Revenue Next 2Y5.09%
Revenue Next 3Y4.79%
Revenue Next 5Y5.45%
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
The Price/Earnings ratio is 25.42, which means the current valuation is very expensive for SXT.
Compared to the rest of the industry, the Price/Earnings ratio of SXT is on the same level as its industry peers.
SXT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
Based on the Price/Forward Earnings ratio of 20.97, the valuation of SXT can be described as rather expensive.
61.45% of the companies in the same industry are cheaper than SXT, based on the Price/Forward Earnings ratio.
SXT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SXT indicates a slightly more expensive valuation: SXT is more expensive than 65.06% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SXT is valued a bit cheaper than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.7 | ||
| EV/EBITDA | 14.81 |
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.
SXT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.42
PEG (5Y)N/A
EPS Next 2Y10.11%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.35, SXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, SXT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of SXT has a limited annual growth rate of 4.17%.
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)4.17%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
SXT pays out 78.17% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SXT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.17%
EPS Next 2Y10.11%
EPS Next 3Y10.85%
SENSIENT TECHNOLOGIES CORP
NYSE:SXT (12/26/2024, 2:57:29 PM)
72.96
-0.47 (-0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-0.73%
Ins Owners1.16%
Ins Owner Change1.82%
Market Cap3.09B
Analysts83.33
Price Target88.23 (20.93%)
Short Float %1.26%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)0%
PT rev (3m)1.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 20.97 | ||
| P/S | 2.02 | ||
| P/FCF | 21.7 | ||
| P/OCF | 15.56 | ||
| P/B | 2.86 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)2.87
EY3.93%
EPS(NY)3.48
Fwd EY4.77%
FCF(TTM)3.36
FCFY4.61%
OCF(TTM)4.69
OCFY6.43%
SpS36.12
BVpS25.51
TBVpS15.16
PEG (NY)4.42
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 | 4.62 |
F-Score5
WACC8.11%
ROIC/WACC0.99
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 2Y10.11%
EPS Next 3Y10.85%
EPS Next 5Y12.61%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Sales Q2Q%7.91%
Revenue Next Year6.06%
Revenue Next 2Y5.09%
Revenue Next 3Y4.79%
Revenue Next 5Y5.45%
EBIT growth 1Y3.02%
EBIT growth 3Y2.22%
EBIT growth 5Y-2.11%
EBIT Next Year40.06%
EBIT Next 3Y18.26%
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%