SENSIENT TECHNOLOGIES CORP (SXT) Stock Fundamental Analysis
NYSE:SXT - New York Stock Exchange, Inc. - US81725T1007 - Common Stock - Currency: USD
SXT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. SXT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, SXT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SXT was profitable.
SXT had a positive operating cash flow in the past year.
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's Return On Assets of 6.13% is amongst the best of the industry. SXT outperforms 85.88% of its industry peers.
The Return On Equity of SXT (11.71%) is better than 82.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.07%, SXT is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SXT is in line with the industry average of 6.72%.
| 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
SXT's Profit Margin of 8.19% is amongst the best of the industry. SXT outperforms 81.18% of its industry peers.
In the last couple of years the Profit Margin of SXT has grown nicely.
SXT has a better Operating Margin (12.93%) than 70.59% of its industry peers.
In the last couple of years the Operating Margin of SXT has grown nicely.
Looking at the Gross Margin, with a value of 32.93%, SXT is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
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.
SXT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SXT has been reduced compared to 5 years ago.
The debt/assets ratio for SXT has been reduced compared to a year ago.
2.2 Solvency
SXT has an Altman-Z score of 5.63. This indicates that SXT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SXT (5.63) is better than 96.47% of its industry peers.
SXT has a debt to FCF ratio of 10.32. This is a negative value and a sign of low solvency as SXT would need 10.32 years to pay back of all of its debts.
SXT has a better Debt to FCF ratio (10.32) than 62.35% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that SXT is somewhat dependend on debt financing.
SXT has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: SXT outperforms 54.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.32 | ||
| Altman-Z | 5.63 |
ROIC/WACC0.94
WACC8.56%
2.3 Liquidity
A Current Ratio of 4.34 indicates that SXT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.34, SXT belongs to the best of the industry, outperforming 89.41% 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 better Quick ratio (1.74) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.25% over the past year.
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.
Looking at the last year, SXT shows a small growth in Revenue. The Revenue has grown by 6.92% 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)6.92%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%2.65%
3.2 Future
SXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.06% yearly.
SXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y12.18%
EPS Next 2Y13.12%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue Next Year3.56%
Revenue Next 2Y4.38%
Revenue Next 3Y5.61%
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
With a Price/Earnings ratio of 35.17, SXT can be considered very expensive at the moment.
SXT's Price/Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SXT to the average of the S&P500 Index (27.03), we can say SXT is valued slightly more expensively.
The Price/Forward Earnings ratio is 29.67, which means the current valuation is very expensive for SXT.
SXT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 63.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.28. SXT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 29.67 |
4.2 Price Multiples
67.06% of the companies in the same industry are cheaper than SXT, based on the Enterprise Value to EBITDA ratio.
SXT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.36 | ||
| EV/EBITDA | 20.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SXT may justify a higher PE ratio.
SXT's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.89
PEG (5Y)104.79
EPS Next 2Y13.12%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, SXT has a reasonable but not impressive dividend return.
SXT's Dividend Yield is comparable with the industry average which is at 3.75.
SXT's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y13.12%
EPS Next 3Y15.06%
114.29
+0.89 (+0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.73%
Inst Owner Change-0.31%
Ins Owners1.29%
Ins Owner Change2.01%
Market Cap4.85B
Analysts80
Price Target108.46 (-5.1%)
Short Float %4.57%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)11.15%
PT rev (3m)24.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 29.67 | ||
| P/S | 3.1 | ||
| P/FCF | 71.36 | ||
| P/OCF | 36.48 | ||
| P/B | 4.43 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 20.99 |
EPS(TTM)3.25
EY2.84%
EPS(NY)3.85
Fwd EY3.37%
FCF(TTM)1.6
FCFY1.4%
OCF(TTM)3.13
OCFY2.74%
SpS36.86
BVpS25.79
TBVpS15.53
PEG (NY)2.89
PEG (5Y)104.79
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 | 5.63 |
F-Score7
WACC8.56%
ROIC/WACC0.94
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 Y12.18%
EPS Next 2Y13.12%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%2.65%
Revenue Next Year3.56%
Revenue Next 2Y4.38%
Revenue Next 3Y5.61%
Revenue Next 5YN/A
EBIT growth 1Y9.85%
EBIT growth 3Y2.83%
EBIT growth 5Y10.36%
EBIT Next Year44.62%
EBIT Next 3Y22.14%
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%