SENSIENT TECHNOLOGIES CORP (SXT) Stock Fundamental Analysis
NYSE:SXT - US81725T1007 - Common Stock
113.54 USD
+0.74 (+0.66%)
113.54 USD
0 (0%)
Taking everything into account, SXT scores 6 out of 10 in our fundamental rating. SXT was compared to 84 industry peers in the Chemicals industry. SXT has an excellent profitability rating, but there are some minor concerns on its financial health. SXT is quite expensive at the moment. 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.
SXT had positive earnings in each of the past 5 years.
Each year in the past 5 years SXT had a positive operating cash flow.
1.2 Ratios
SXT has a Return On Assets of 6.12%. This is amongst the best in the industry. SXT outperforms 86.90% of its industry peers.
SXT has a Return On Equity of 11.65%. This is amongst the best in the industry. SXT outperforms 82.14% of its industry peers.
With a decent Return On Invested Capital value of 8.06%, SXT is doing good in the industry, outperforming 75.00% 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 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 11.65% | ||
| ROIC | 8.06% |
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
The Profit Margin of SXT (8.56%) is better than 82.14% of its industry peers.
SXT's Profit Margin has improved in the last couple of years.
SXT has a better Operating Margin (13.46%) than 71.43% of its industry peers.
SXT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.58%, SXT is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
SXT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.46% | ||
| PM (TTM) | 8.56% | ||
| GM | 33.58% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SXT is destroying value.
SXT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SXT has less shares outstanding
Compared to 1 year ago, SXT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.39 indicates that SXT is not in any danger for bankruptcy at the moment.
SXT's Altman-Z score of 5.39 is amongst the best of the industry. SXT outperforms 96.43% of its industry peers.
The Debt to FCF ratio of SXT is 11.67, which is on the high side as it means it would take SXT, 11.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.67, SXT perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that SXT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, SXT is in line with its industry, outperforming 55.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.67 | ||
| Altman-Z | 5.39 |
ROIC/WACC0.93
WACC8.64%
2.3 Liquidity
SXT has a Current Ratio of 4.25. This indicates that SXT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.25, SXT belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 1.78 indicates that SXT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.78, SXT is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.25 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
SXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.25%, which is quite good.
SXT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.34% yearly.
Looking at the last year, SXT shows a small growth in Revenue. The Revenue has grown by 4.95% in the last year.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)15.25%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%22.08%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%2.65%
3.2 Future
Based on estimates for the next years, SXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.40% on average per year.
Based on estimates for the next years, SXT will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y15.99%
EPS Next 2Y14.83%
EPS Next 3Y16.4%
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y4.57%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.94 indicates a quite expensive valuation of SXT.
Compared to the rest of the industry, the Price/Earnings ratio of SXT is on the same level as its industry peers.
SXT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.14.
A Price/Forward Earnings ratio of 28.60 indicates a quite expensive valuation of SXT.
SXT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SXT to the average of the S&P500 Index (22.80), we can say SXT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 28.6 |
4.2 Price Multiples
SXT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SXT is more expensive than 69.05% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SXT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.4 | ||
| EV/EBITDA | 20.16 |
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.
The excellent profitability rating of SXT may justify a higher PE ratio.
SXT's earnings are expected to grow with 16.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)104.11
EPS Next 2Y14.83%
EPS Next 3Y16.4%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
SXT's Dividend Yield is comparable with the industry average which is at 3.54.
Compared to the average S&P500 Dividend Yield of 2.34, SXT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 51.48% 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.
DP51.48%
EPS Next 2Y14.83%
EPS Next 3Y16.4%
113.54
+0.74 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change8.36%
Ins Owners1.29%
Ins Owner Change0.49%
Market Cap4.82B
Analysts80
Price Target124.1 (9.3%)
Short Float %4.08%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1.65
Dividend Growth(5Y)2.28%
DP51.48%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.8%
Min EPS beat(2)3.84%
Max EPS beat(2)5.76%
EPS beat(4)3
Avg EPS beat(4)2.29%
Min EPS beat(4)-0.99%
Max EPS beat(4)5.76%
EPS beat(8)4
Avg EPS beat(8)0.59%
EPS beat(12)6
Avg EPS beat(12)-0.25%
EPS beat(16)10
Avg EPS beat(16)0.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.02%
Revenue beat(12)3
Avg Revenue beat(12)-1.37%
Revenue beat(16)5
Avg Revenue beat(16)-0.74%
PT rev (1m)14.42%
PT rev (3m)26.74%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)3.39%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 28.6 | ||
| P/S | 3.06 | ||
| P/FCF | 76.4 | ||
| P/OCF | 35.07 | ||
| P/B | 4.17 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 20.16 |
EPS(TTM)3.25
EY2.86%
EPS(NY)3.97
Fwd EY3.5%
FCF(TTM)1.49
FCFY1.31%
OCF(TTM)3.24
OCFY2.85%
SpS37.1
BVpS27.25
TBVpS16.6
PEG (NY)2.19
PEG (5Y)104.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 11.65% | ||
| ROCE | 10.85% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.3% | ||
| ROICexgc | 10.9% | ||
| OM | 13.46% | ||
| PM (TTM) | 8.56% | ||
| GM | 33.58% | ||
| FCFM | 4.01% |
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-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.67 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 122.09% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.38% | ||
| Profit Quality | 46.8% | ||
| Current Ratio | 4.25 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.39 |
F-Score6
WACC8.64%
ROIC/WACC0.93
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)15.25%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%22.08%
EPS Next Y15.99%
EPS Next 2Y14.83%
EPS Next 3Y16.4%
EPS Next 5YN/A
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%2.65%
Revenue Next Year3.37%
Revenue Next 2Y4.57%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y15.19%
EBIT growth 3Y2.83%
EBIT growth 5Y10.36%
EBIT Next Year49.36%
EBIT Next 3Y23.69%
EBIT Next 5YN/A
FCF growth 1Y223.72%
FCF growth 3Y5.07%
FCF growth 5Y-6.64%
OCF growth 1Y235.56%
OCF growth 3Y2.67%
OCF growth 5Y-2.37%