SENSATA TECHNOLOGIES HOLDING (ST) Stock Fundamental Analysis
NYSE:ST - New York Stock Exchange, Inc. - GB00BFMBMT84 - Common Stock - Currency: USD
Taking everything into account, ST scores 5 out of 10 in our fundamental rating. ST was compared to 95 industry peers in the Electrical Equipment industry. ST has an average financial health and profitability rating. ST is valued quite cheap, but it does not seem to be growing. This makes ST very considerable for value investing!
1. Profitability
1.1 Basic Checks
ST had positive earnings in the past year.
In the past year ST had a positive cash flow from operations.
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
ST has a better Return On Assets (1.71%) than 74.74% of its industry peers.
The Return On Equity of ST (4.30%) is better than 77.89% of its industry peers.
ST has a Return On Invested Capital of 5.35%. This is in the better half of the industry: ST outperforms 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
ST's Profit Margin of 3.19% is fine compared to the rest of the industry. ST outperforms 75.79% of its industry peers.
In the last couple of years the Profit Margin of ST has declined.
ST has a better Operating Margin (11.26%) than 81.05% of its industry peers.
ST's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.95%, ST is in the better half of the industry, outperforming 65.26% of the companies in the same industry.
ST's Gross Margin has declined in the last couple of years.
| 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
ST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for ST is higher compared to a year ago.
2.2 Solvency
ST has an Altman-Z score of 1.93. 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 1.93, ST is doing good in the industry, outperforming 62.11% 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.
ST's Debt to FCF ratio of 7.71 is fine compared to the rest of the industry. ST outperforms 68.42% 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 69.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 1.93 |
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 better Current ratio (2.64) than 70.53% of its industry peers.
ST has a Quick Ratio of 1.81. This is a normal value and indicates that ST is financially healthy and should not expect problems in meeting 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 70.53% 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.
The Revenue has decreased by -5.55% in the past 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
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.
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.
Based on the Price/Earnings ratio, ST is valued cheaply inside the industry as 95.79% of the companies are valued more expensively.
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.
Based on the Price/Forward Earnings ratio of 7.22, the valuation of ST can be described as very cheap.
Based on the Price/Forward Earnings ratio, ST is valued cheaply inside the industry as 95.79% of the companies are valued more expensively.
ST is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| 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 90.53% of the companies in the same industry.
92.63% of the companies in the same industry are more expensive than ST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 8.57 |
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.
ST's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| 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
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%
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 | 8.57 |
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 | 1.93 |
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%