SENSATA TECHNOLOGIES HOLDING (NYSE:ST): good value for what you're paying.

Last update: Mar 14, 2025

Uncover the hidden value in SENSATA TECHNOLOGIES HOLDING (NYSE:ST) as our stock screening tool recommends it as an undervalued choice. ST maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. ST scores a 7 out of 10:

ST is valuated cheaply with a Price/Earnings ratio of 7.69.
ST's Price/Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 96.74% of the companies in the same industry.
ST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.38.
A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of ST.
ST's Price/Forward Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 92.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.15. ST is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ST indicates a rather cheap valuation: ST is cheaper than 89.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ST is valued cheaper than 92.39% of the companies in the same industry.

Profitability Analysis for ST

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. ST has earned a 5 out of 10:

ST has a better Return On Assets (1.80%) than 73.91% of its industry peers.
ST has a Return On Equity of 4.44%. This is in the better half of the industry: ST outperforms 75.00% of its industry peers.
ST's Return On Invested Capital of 5.51% is fine compared to the rest of the industry. ST outperforms 77.17% of its industry peers.
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.
Looking at the Operating Margin, with a value of 11.41%, ST belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
ST has a Gross Margin of 29.39%. This is in the better half of the industry: ST outperforms 68.48% of its industry peers.

Understanding ST's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. ST has earned a 5 out of 10:

ST has a Altman-Z score of 2.00. This is in the better half of the industry: ST outperforms 65.22% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 8.14, ST is in the better half of the industry, outperforming 68.48% of the companies in the same industry.
ST has a Current Ratio of 2.85. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ST (2.85) is better than 75.00% of its industry peers.
ST has a better Quick ratio (1.99) than 78.26% of its industry peers.

Evaluating Growth: ST

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. ST was assigned a score of 4 for growth:

The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ST

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.