SENSIENT TECHNOLOGIES CORP (SXT) Stock Fundamental Analysis
NYSE:SXT - New York Stock Exchange, Inc. - US81725T1007 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SXT. SXT was compared to 85 industry peers in the Chemicals industry. SXT has an excellent profitability rating, but there are some minor concerns on its financial health. SXT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SXT had positive earnings in the past year.
In the past year SXT had a positive cash flow from operations.
Each year in the past 5 years SXT has been profitable.
SXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SXT (6.13%) is better than 84.71% of its industry peers.
SXT has a Return On Equity of 11.71%. This is amongst the best in the industry. SXT outperforms 83.53% of its industry peers.
With a decent Return On Invested Capital value of 8.07%, SXT is doing good in the industry, outperforming 74.12% of the companies in the same industry.
SXT had an Average Return On Invested Capital over the past 3 years of 8.07%. This is in line with the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 11.71% | ||
| ROIC | 8.07% |
ROA(3y)5.97%
ROA(5y)6.2%
ROE(3y)11.57%
ROE(5y)11.82%
ROIC(3y)8.07%
ROIC(5y)8.29%
1.3 Margins
Looking at the Profit Margin, with a value of 8.19%, SXT belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
SXT's Profit Margin has improved in the last couple of years.
SXT has a better Operating Margin (12.93%) than 68.24% of its industry peers.
In the last couple of years the Operating Margin of SXT has grown nicely.
The Gross Margin of SXT (32.93%) is better than 62.35% of its industry peers.
In the last couple of years the Gross Margin of SXT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.93% | ||
| PM (TTM) | 8.19% | ||
| GM | 32.93% |
OM growth 3Y-1.22%
OM growth 5Y6.81%
PM growth 3Y-2.37%
PM growth 5Y5.25%
GM growth 3Y-0.3%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
SXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SXT has more shares outstanding
Compared to 5 years ago, SXT has less shares outstanding
The debt/assets ratio for SXT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.11 indicates that SXT is not in any danger for bankruptcy at the moment.
The Altman-Z score of SXT (5.11) is better than 92.94% of its industry peers.
The Debt to FCF ratio of SXT is 10.32, which is on the high side as it means it would take SXT, 10.32 years of fcf income to pay off all of its debts.
SXT's Debt to FCF ratio of 10.32 is fine compared to the rest of the industry. SXT outperforms 61.18% of its industry peers.
SXT has a Debt/Equity ratio of 0.62. This is a neutral value indicating SXT is somewhat dependend on debt financing.
SXT has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.32 | ||
| Altman-Z | 5.11 |
ROIC/WACC0.92
WACC8.74%
2.3 Liquidity
A Current Ratio of 4.34 indicates that SXT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.34, SXT belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
SXT has a Quick Ratio of 1.74. This is a normal value and indicates that SXT is financially healthy and should not expect problems in meeting its short term obligations.
SXT has a Quick ratio of 1.74. This is in the better half of the industry: SXT outperforms 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
SXT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.69%.
Measured over the past 5 years, SXT shows a small growth in Earnings Per Share. The EPS has been growing by 0.34% on average per year.
SXT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.30%.
SXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
EPS 1Y (TTM)7.69%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%8.86%
Revenue 1Y (TTM)6.3%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%1.99%
3.2 Future
The Earnings Per Share is expected to grow by 15.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.59% on average over the next years.
EPS Next Y12.07%
EPS Next 2Y13.22%
EPS Next 3Y15.4%
EPS Next 5YN/A
Revenue Next Year3.68%
Revenue Next 2Y4.41%
Revenue Next 3Y5.59%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.46 indicates a quite expensive valuation of SXT.
Compared to the rest of the industry, the Price/Earnings ratio of SXT indicates a slightly more expensive valuation: SXT is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SXT is valued at the same level.
With a Price/Forward Earnings ratio of 24.31, SXT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SXT indicates a slightly more expensive valuation: SXT is more expensive than 61.18% of the companies listed in the same industry.
SXT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SXT is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
SXT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.55 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SXT does not grow enough to justify the current Price/Earnings ratio.
SXT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SXT's earnings are expected to grow with 15.40% in the coming years.
PEG (NY)2.52
PEG (5Y)90.76
EPS Next 2Y13.22%
EPS Next 3Y15.4%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 1.73%.
SXT's Dividend Yield is comparable with the industry average which is at 3.70.
Compared to the average S&P500 Dividend Yield of 2.36, SXT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of SXT has a limited annual growth rate of 2.28%.
SXT has been paying a dividend for at least 10 years, so it has a reliable track record.
SXT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.28%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
SXT pays out 54.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
SXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.19%
EPS Next 2Y13.22%
EPS Next 3Y15.4%
93.81
-0.42 (-0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change2.12%
Ins Owners1.26%
Ins Owner Change4.01%
Market Cap3.98B
Analysts83.33
Price Target97.92 (4.38%)
Short Float %3.03%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend1.65
Dividend Growth(5Y)2.28%
DP54.19%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)0.56%
Max EPS beat(2)3.84%
EPS beat(4)2
Avg EPS beat(4)-0.91%
Min EPS beat(4)-7.03%
Max EPS beat(4)3.84%
EPS beat(8)3
Avg EPS beat(8)-1.24%
EPS beat(12)6
Avg EPS beat(12)-0.54%
EPS beat(16)10
Avg EPS beat(16)0.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)1.15%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)6
Avg Revenue beat(16)-0.3%
PT rev (1m)12.28%
PT rev (3m)12.28%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)3.09%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 24.31 | ||
| P/S | 2.54 | ||
| P/FCF | 58.55 | ||
| P/OCF | 29.93 | ||
| P/B | 3.64 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 17.68 |
EPS(TTM)3.08
EY3.28%
EPS(NY)3.86
Fwd EY4.11%
FCF(TTM)1.6
FCFY1.71%
OCF(TTM)3.13
OCFY3.34%
SpS36.87
BVpS25.8
TBVpS15.54
PEG (NY)2.52
PEG (5Y)90.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 11.71% | ||
| ROCE | 10.87% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 10.78% | ||
| OM | 12.93% | ||
| PM (TTM) | 8.19% | ||
| GM | 32.93% | ||
| FCFM | 4.35% |
ROA(3y)5.97%
ROA(5y)6.2%
ROE(3y)11.57%
ROE(5y)11.82%
ROIC(3y)8.07%
ROIC(5y)8.29%
ROICexc(3y)8.19%
ROICexc(5y)8.42%
ROICexgc(3y)10.89%
ROICexgc(5y)11.48%
ROCE(3y)10.98%
ROCE(5y)11.24%
ROICexcg growth 3Y-4.49%
ROICexcg growth 5Y6.73%
ROICexc growth 3Y-2.36%
ROICexc growth 5Y7.59%
OM growth 3Y-1.22%
OM growth 5Y6.81%
PM growth 3Y-2.37%
PM growth 5Y5.25%
GM growth 3Y-0.3%
GM growth 5Y0.81%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.32 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 107.15% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.57% | ||
| Profit Quality | 53.05% | ||
| Current Ratio | 4.34 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 5.11 |
F-Score7
WACC8.74%
ROIC/WACC0.92
Cap/Depr(3y)133.77%
Cap/Depr(5y)124.67%
Cap/Sales(3y)5.12%
Cap/Sales(5y)4.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%8.86%
EPS Next Y12.07%
EPS Next 2Y13.22%
EPS Next 3Y15.4%
EPS Next 5YN/A
Revenue 1Y (TTM)6.3%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%1.99%
Revenue Next Year3.68%
Revenue Next 2Y4.41%
Revenue Next 3Y5.59%
Revenue Next 5YN/A
EBIT growth 1Y9.85%
EBIT growth 3Y2.83%
EBIT growth 5Y10.36%
EBIT Next Year25.66%
EBIT Next 3Y20.15%
EBIT Next 5YN/A
FCF growth 1Y186.14%
FCF growth 3Y5.07%
FCF growth 5Y-6.64%
OCF growth 1Y1241.52%
OCF growth 3Y2.67%
OCF growth 5Y-2.37%