SENSATA TECHNOLOGIES HOLDING (ST) Stock Fundamental Analysis
NYSE:ST - New York Stock Exchange, Inc. - GB00BFMBMT84 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ST. ST was compared to 95 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of ST get a neutral evaluation. Nothing too spectacular is happening here. ST has a bad growth rate and is valued cheaply. These ratings could make ST a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ST was profitable.
ST had a positive operating cash flow in the past year.
ST had positive earnings in 4 of the past 5 years.
In the past 5 years ST always reported a positive cash flow from operatings.
1.2 Ratios
ST's Return On Assets of 1.71% is fine compared to the rest of the industry. ST outperforms 73.68% of its industry peers.
ST has a Return On Equity of 4.30%. This is in the better half of the industry: ST outperforms 77.89% of its industry peers.
ST has a better Return On Invested Capital (5.35%) than 75.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ST is below the industry average of 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 4.3% | ||
| ROIC | 5.35% |
ROA(3y)1.77%
ROA(5y)2.32%
ROE(3y)4.77%
ROE(5y)6.42%
ROIC(3y)6.08%
ROIC(5y)5.96%
1.3 Margins
With a decent Profit Margin value of 3.19%, ST is doing good in the industry, outperforming 75.79% of the companies in the same industry.
In the last couple of years the Profit Margin of ST has declined.
ST has a Operating Margin of 11.26%. This is amongst the best in the industry. ST outperforms 81.05% of its industry peers.
ST's Operating Margin has declined in the last couple of years.
ST's Gross Margin of 28.95% is fine compared to the rest of the industry. ST outperforms 65.26% of its industry peers.
In the last couple of years the Gross Margin of ST has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 3.19% | ||
| GM | 28.95% |
OM growth 3Y-12.39%
OM growth 5Y-8.4%
PM growth 3Y-29.98%
PM growth 5Y-16.8%
GM growth 3Y-4.23%
GM growth 5Y-3.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ST is destroying value.
The number of shares outstanding for ST has been reduced compared to 1 year ago.
The number of shares outstanding for ST has been reduced compared to 5 years ago.
ST has a worse debt/assets ratio than last year.
2.2 Solvency
ST has an Altman-Z score of 1.95. This is not the best score and indicates that ST is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.95, ST is doing good in the industry, outperforming 61.05% of the companies in the same industry.
The Debt to FCF ratio of ST is 7.71, which is on the high side as it means it would take ST, 7.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.71, ST is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
ST has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ST (1.12) is worse than 69.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.82
WACC6.55%
2.3 Liquidity
ST has a Current Ratio of 2.64. This indicates that ST is financially healthy and has no problem in meeting its short term obligations.
ST has a Current ratio of 2.64. This is in the better half of the industry: ST outperforms 70.53% of its industry peers.
A Quick Ratio of 1.81 indicates that ST should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.81, ST is doing good in the industry, outperforming 71.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
ST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.98%.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
Looking at the last year, ST shows a decrease in Revenue. The Revenue has decreased by -5.55% in the last year.
ST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.65% yearly.
EPS 1Y (TTM)-6.98%
EPS 3Y-1.04%
EPS 5Y-0.74%
EPS Q2Q%-12.36%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y0.97%
Revenue growth 5Y2.65%
Sales Q2Q%-9.48%
3.2 Future
Based on estimates for the next years, ST will show a small growth in Earnings Per Share. The EPS will grow by 5.48% on average per year.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y-3.19%
EPS Next 2Y2.69%
EPS Next 3Y5.48%
EPS Next 5Y5.48%
Revenue Next Year-6.63%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.88%
Revenue Next 5Y2.7%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.87, the valuation of ST can be described as very cheap.
ST's Price/Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 95.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of ST to the average of the S&P500 Index (26.35), we can say ST is valued rather cheaply.
A Price/Forward Earnings ratio of 7.22 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 95.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, ST is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ST is valued cheaper than 92.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ST indicates a rather cheap valuation: ST is cheaper than 92.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.69%
EPS Next 3Y5.48%
5. Dividend
5.1 Amount
ST has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
ST's Dividend Yield is rather good when compared to the industry average which is at 4.64. ST pays more dividend than 94.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, ST is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
ST has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ST pays out 58.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.88%
EPS Next 2Y2.69%
EPS Next 3Y5.48%
26.2
+1.01 (+4.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.02%
Inst Owner Change-0.11%
Ins Owners0.38%
Ins Owner Change9.06%
Market Cap3.83B
Analysts73.33
Price Target31.98 (22.06%)
Short Float %2.61%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP58.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.89%
Min EPS beat(2)-1.44%
Max EPS beat(2)5.23%
EPS beat(4)1
Avg EPS beat(4)-0.33%
Min EPS beat(4)-2.75%
Max EPS beat(4)5.23%
EPS beat(8)2
Avg EPS beat(8)-1.3%
EPS beat(12)4
Avg EPS beat(12)-0.66%
EPS beat(16)6
Avg EPS beat(16)0.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)0.44%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)2
Avg Revenue beat(12)-1.47%
Revenue beat(16)2
Avg Revenue beat(16)-1.36%
PT rev (1m)-13.2%
PT rev (3m)-13.2%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)4.4%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.22 | ||
| P/S | 1 | ||
| P/FCF | 9.23 | ||
| P/OCF | 6.79 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.77 |
EPS(TTM)3.33
EY12.71%
EPS(NY)3.63
Fwd EY13.84%
FCF(TTM)2.84
FCFY10.83%
OCF(TTM)3.86
OCFY14.72%
SpS26.23
BVpS19.47
TBVpS-6.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 4.3% | ||
| ROCE | 6.77% | ||
| ROIC | 5.35% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 17.64% | ||
| OM | 11.26% | ||
| PM (TTM) | 3.19% | ||
| GM | 28.95% | ||
| FCFM | 10.82% |
ROA(3y)1.77%
ROA(5y)2.32%
ROE(3y)4.77%
ROE(5y)6.42%
ROIC(3y)6.08%
ROIC(5y)5.96%
ROICexc(3y)6.84%
ROICexc(5y)7.2%
ROICexgc(3y)24.69%
ROICexgc(5y)30.38%
ROCE(3y)7.69%
ROCE(5y)7.54%
ROICexcg growth 3Y-17.01%
ROICexcg growth 5Y-10.17%
ROICexc growth 3Y-10.4%
ROICexc growth 5Y-7.34%
OM growth 3Y-12.39%
OM growth 5Y-8.4%
PM growth 3Y-29.98%
PM growth 5Y-16.8%
GM growth 3Y-4.23%
GM growth 5Y-3.04%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 49.28% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.81% | ||
| Profit Quality | 339.33% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 1.95 |
F-Score8
WACC6.55%
ROIC/WACC0.82
Cap/Depr(3y)54.74%
Cap/Depr(5y)52.35%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.98%
EPS 3Y-1.04%
EPS 5Y-0.74%
EPS Q2Q%-12.36%
EPS Next Y-3.19%
EPS Next 2Y2.69%
EPS Next 3Y5.48%
EPS Next 5Y5.48%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y0.97%
Revenue growth 5Y2.65%
Sales Q2Q%-9.48%
Revenue Next Year-6.63%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.88%
Revenue Next 5Y2.7%
EBIT growth 1Y-21.22%
EBIT growth 3Y-11.54%
EBIT growth 5Y-5.97%
EBIT Next Year11.3%
EBIT Next 3Y8.19%
EBIT Next 5Y8.29%
FCF growth 1Y15.71%
FCF growth 3Y-1.38%
FCF growth 5Y-3.03%
OCF growth 1Y10.61%
OCF growth 3Y-0.16%
OCF growth 5Y-2.3%