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 94 industry peers in the Electrical Equipment industry. ST has only an average score on both its financial health and profitability. ST is valued quite cheap, but it does not seem to be growing. These ratings could make ST a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ST had positive earnings in the past year.
ST had a positive operating cash flow in the past year.
ST had positive earnings in 4 of the past 5 years.
ST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.71%, ST is doing good in the industry, outperforming 74.47% of the companies in the same industry.
The Return On Equity of ST (4.30%) is better than 78.72% of its industry peers.
ST has a better Return On Invested Capital (5.35%) than 76.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ST is below the industry average of 9.87%.
| 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 75.53% of the companies in the same industry.
In the last couple of years the Profit Margin of ST has declined.
The Operating Margin of ST (11.26%) is better than 80.85% of its industry peers.
In the last couple of years the Operating Margin of ST has declined.
Looking at the Gross Margin, with a value of 28.95%, ST is in the better half of the industry, outperforming 67.02% of the companies in the same industry.
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.
Compared to 1 year ago, ST has less shares outstanding
ST has less shares outstanding than it did 5 years ago.
ST has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.00 indicates that ST is not a great score, but indicates only limited risk for bankruptcy at the moment.
ST has a Altman-Z score (2.00) which is in line with its industry peers.
ST has a debt to FCF ratio of 7.71. This is a slightly negative value and a sign of low solvency as ST would need 7.71 years to pay back of all of its debts.
ST's Debt to FCF ratio of 7.71 is fine compared to the rest of the industry. ST outperforms 71.28% of its industry peers.
ST has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
ST has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: ST underperforms 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2 |
ROIC/WACC0.58
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.64 indicates that ST has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.64, ST is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
A Quick Ratio of 1.81 indicates that ST should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.81, ST is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The earnings per share for ST have decreased by -6.98% in the last year.
ST shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
ST shows a decrease in Revenue. In the last year, the revenue decreased by -5.55%.
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.
ST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y-3.19%
EPS Next 2Y2.69%
EPS Next 3Y5.48%
EPS Next 5Y5.48%
Revenue Next Year-6.43%
Revenue Next 2Y-1.36%
Revenue Next 3Y0.88%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.57, the valuation of ST can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ST indicates a rather cheap valuation: ST is cheaper than 94.68% of the companies listed in the same industry.
ST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
Based on the Price/Forward Earnings ratio of 7.87, the valuation of ST can be described as very cheap.
ST's Price/Forward Earnings ratio is rather cheap when compared to the industry. ST is cheaper than 95.74% of the companies in the same industry.
ST is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ST indicates a rather cheap valuation: ST is cheaper than 91.49% of the companies listed 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 94.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 9.24 |
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 1.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.39, ST pays a better dividend. On top of this ST pays more dividend than 94.68% of the companies listed in the same industry.
ST's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
ST has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
58.88% of the earnings are spent on dividend by ST. This is a bit on the high side, but may be sustainable.
DP58.88%
EPS Next 2Y2.69%
EPS Next 3Y5.48%
28.55
+1.06 (+3.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.5%
Inst Owner Change-0.14%
Ins Owners0.54%
Ins Owner Change12.58%
Market Cap4.18B
Analysts73.6
Price Target33.78 (18.32%)
Short Float %3.14%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)5.62%
PT rev (3m)-8.33%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 7.87 | ||
| P/S | 1.09 | ||
| P/FCF | 10.06 | ||
| P/OCF | 7.4 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.24 |
EPS(TTM)3.33
EY11.66%
EPS(NY)3.63
Fwd EY12.71%
FCF(TTM)2.84
FCFY9.94%
OCF(TTM)3.86
OCFY13.51%
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 | 2 |
F-Score8
WACC9.2%
ROIC/WACC0.58
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-6.43%
Revenue Next 2Y-1.36%
Revenue Next 3Y0.88%
Revenue Next 5Y3.15%
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 5Y8.4%
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%