Sensient Technologies Corporation
Sensient Technologies Corporation Fundamental Analysis
Sensient Technologies Corporation (SXT) shows weak financial fundamentals with a PE ratio of 35.20, profit margin of 8.71%, and ROE of 9.91%. The company generates $1.7B in annual revenue with moderate year-over-year growth of 3.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SXT's fundamental strength across five key dimensions:
Efficiency Score
WeakSXT struggles to generate sufficient returns from assets.
Valuation Score
WeakSXT trades at a premium to fair value.
Growth Score
WeakSXT faces weak or negative growth trends.
Financial Health Score
ExcellentSXT maintains a strong and stable balance sheet.
Profitability Score
WeakSXT struggles to sustain strong margins.
Key Financial Metrics
Is SXT Expensive or Cheap?
P/E Ratio
SXT trades at 35.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SXT's PEG of 2.97 indicates potential overvaluation.
Price to Book
The market values Sensient Technologies Corporation at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.43 times EBITDA. This signals the market has high growth expectations.
How Well Does SXT Make Money?
Net Profit Margin
For every $100 in sales, Sensient Technologies Corporation keeps $8.71 as profit after all expenses.
Operating Margin
Core operations generate 13.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.91 in profit for every $100 of shareholder equity.
ROA
Sensient Technologies Corporation generates $6.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sensient Technologies Corporation generates limited operating cash flow of $128.60M, signaling weaker underlying cash strength.
Free Cash Flow
Sensient Technologies Corporation generates weak or negative free cash flow of $38.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
SXT converts 0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SXT Stacks Against Its Sector Peers
| Metric | SXT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.20 | 24.52 | Worse (Expensive) |
| ROE | 9.91% | 848.00% | Weak |
| Net Margin | 8.71% | -109409.00% (disorted) | Weak |
| Debt/Equity | 0.34 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 5.01 | 6.73 | Strong Liquidity |
| ROA | 6.30% | -6696.00% (disorted) | Weak |
SXT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sensient Technologies Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.22%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
23.04%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-41.48%
Industry Style: Cyclical, Commodity, Value
Declining