SENSIENT TECHNOLOGIES CORP (SXT)

US81725T1007 - Common Stock

67.69  +1.06 (+1.59%)

After market: 67.69 0 (0%)

Fundamental Rating

5

Taking everything into account, SXT scores 5 out of 10 in our fundamental rating. SXT was compared to 85 industry peers in the Chemicals industry. SXT has an average financial health and profitability rating. SXT is valied quite expensively at the moment, while it does show a decent growth rate.



6

1. Profitability

1.1 Basic Checks

SXT had positive earnings in the past year.
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 4.64% is fine compared to the rest of the industry. SXT outperforms 67.06% of its industry peers.
SXT's Return On Equity of 8.87% is in line compared to the rest of the industry. SXT outperforms 58.82% of its industry peers.
With a decent Return On Invested Capital value of 7.62%, SXT is doing good in the industry, outperforming 68.24% of the companies in the same industry.
SXT had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 7.52%.
Industry RankSector Rank
ROA 4.64%
ROE 8.87%
ROIC 7.62%
ROA(3y)6.18%
ROA(5y)5.91%
ROE(3y)11.87%
ROE(5y)11.33%
ROIC(3y)8.31%
ROIC(5y)7.82%

1.3 Margins

SXT's Profit Margin of 6.41% is fine compared to the rest of the industry. SXT outperforms 64.71% of its industry peers.
SXT's Profit Margin has declined in the last couple of years.
SXT's Operating Margin of 12.56% is fine compared to the rest of the industry. SXT outperforms 70.59% of its industry peers.
In the last couple of years the Operating Margin of SXT has declined.
Looking at the Gross Margin, with a value of 31.82%, SXT is in the better half of the industry, outperforming 67.06% 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 RankSector Rank
OM 12.56%
PM (TTM) 6.41%
GM 31.82%
OM growth 3Y-0.78%
OM growth 5Y-3.06%
PM growth 3Y-7.95%
PM growth 5Y-10.79%
GM growth 3Y-0.22%
GM growth 5Y-1.09%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SXT is creating some value.
The number of shares outstanding for SXT has been increased compared to 1 year ago.
SXT has about the same amout of shares outstanding than it did 5 years ago.
SXT has a better debt/assets ratio than last year.

2.2 Solvency

SXT has a debt to FCF ratio of 8.05. This is a slightly negative value and a sign of low solvency as SXT would need 8.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.05, SXT is in line with its industry, outperforming 57.65% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that SXT is somewhat dependend on debt financing.
The Debt to Equity ratio of SXT (0.63) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 8.05
Altman-Z N/A
ROIC/WACC0.95
WACC8.05%

2.3 Liquidity

A Current Ratio of 3.96 indicates that SXT has no problem at all paying its short term obligations.
SXT has a better Current ratio (3.96) than 83.53% of its industry peers.
SXT has a Quick Ratio of 1.43. 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 (1.43) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 3.96
Quick Ratio 1.43

4

3. Growth

3.1 Past

SXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.78%.
The Earnings Per Share has been decreasing by -9.79% on average over the past years.
SXT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.35%.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)-33.78%
EPS 3Y-5.14%
EPS 5Y-9.79%
EPS growth Q2Q-120.13%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Revenue growth Q2Q0.16%

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 13.75% on average per year.
SXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y8.4%
EPS Next 2Y10.04%
EPS Next 3Y13.75%
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y4.32%
Revenue Next 3Y6.13%
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.

3

4. Valuation

4.1 Price/Earnings Ratio

SXT is valuated quite expensively with a Price/Earnings ratio of 30.63.
SXT's Price/Earnings ratio is in line with the industry average.
SXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
SXT is valuated rather expensively with a Price/Forward Earnings ratio of 21.21.
SXT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.63. SXT is around the same levels.
Industry RankSector Rank
PE 30.63
Fwd PE 21.21

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SXT.
SXT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 34.95
EV/EBITDA 14.26

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SXT has a very decent profitability rating, which may justify a higher PE ratio.
SXT's earnings are expected to grow with 13.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.64
PEG (5Y)N/A
EPS Next 2Y10.04%
EPS Next 3Y13.75%

6

5. Dividend

5.1 Amount

SXT has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.58, SXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, SXT has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.46%

5.2 History

The dividend of SXT has a limited annual growth rate of 4.12%.
SXT has paid a dividend for at least 10 years, which is a reliable track record.
SXT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.12%
Div Incr Years17
Div Non Decr Years20

5.3 Sustainability

SXT pays out 74.12% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SXT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.12%
EPS Next 2Y10.04%
EPS Next 3Y13.75%

SENSIENT TECHNOLOGIES CORP

NYSE:SXT (2/23/2024, 7:14:02 PM)

After market: 67.69 0 (0%)

67.69

+1.06 (+1.59%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.86B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.46%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 30.63
Fwd PE 21.21
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.64
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.64%
ROE 8.87%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.56%
PM (TTM) 6.41%
GM 31.82%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.96
Quick Ratio 1.43
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-33.78%
EPS 3Y-5.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y