SENSIENT TECHNOLOGIES CORP (SXT) Stock Fundamental Analysis
NYSE:SXT - New York Stock Exchange, Inc. - US81725T1007 - Common Stock - Currency: USD
Overall SXT gets a fundamental rating of 6 out of 10. We evaluated SXT against 85 industry peers in the Chemicals industry. SXT scores excellent on profitability, 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
In the past year SXT was profitable.
SXT had a positive operating cash flow in the past year.
Each year in the past 5 years SXT has been profitable.
In the past 5 years SXT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.13%, SXT belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
With an excellent Return On Equity value of 11.71%, SXT belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
SXT's Return On Invested Capital of 8.07% is fine compared to the rest of the industry. SXT outperforms 72.94% of its industry peers.
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 6.86%.
| 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
The Profit Margin of SXT (8.19%) is better than 81.18% of its industry peers.
SXT's Profit Margin has improved in the last couple of years.
SXT's Operating Margin of 12.93% is fine compared to the rest of the industry. SXT outperforms 70.59% of its industry peers.
SXT's Operating Margin has improved in the last couple of years.
SXT has a Gross Margin of 32.93%. This is in the better half of the industry: SXT outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SXT is destroying value.
Compared to 1 year ago, SXT has more shares outstanding
The number of shares outstanding for SXT has been reduced compared to 5 years ago.
SXT has a better debt/assets ratio than last year.
2.2 Solvency
SXT has an Altman-Z score of 5.13. This indicates that SXT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SXT (5.13) is better than 95.29% 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 has a Debt to FCF ratio of 10.32. This is in the better half of the industry: SXT outperforms 63.53% 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 (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 | 5.13 |
ROIC/WACC0.94
WACC8.63%
2.3 Liquidity
A Current Ratio of 4.34 indicates that SXT has no problem at all paying its short term obligations.
The Current ratio of SXT (4.34) is better than 89.41% of its industry peers.
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.
With a decent Quick ratio value of 1.74, SXT is doing good in the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.69% over the past year.
The Earnings Per Share has been growing slightly by 0.34% on average over the past years.
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.
Based on estimates for the next years, SXT will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
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.
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 30.68 indicates a quite expensive valuation of SXT.
60.00% of the companies in the same industry are cheaper than SXT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. SXT is around the same levels.
SXT is valuated rather expensively with a Price/Forward Earnings ratio of 24.49.
SXT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SXT is more expensive than 61.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SXT to the average of the S&P500 Index (22.15), we can say SXT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 24.49 |
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 | 59 | ||
| EV/EBITDA | 17.8 |
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 15.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)91.42
EPS Next 2Y13.22%
EPS Next 3Y15.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
94.49
-0.04 (-0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change2.15%
Ins Owners1.26%
Ins Owner Change4.01%
Market Cap4.01B
Analysts83.33
Price Target97.92 (3.63%)
Short Float %3.03%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)0%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)3.09%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 24.49 | ||
| P/S | 2.56 | ||
| P/FCF | 59 | ||
| P/OCF | 30.16 | ||
| P/B | 3.66 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 17.8 |
EPS(TTM)3.08
EY3.26%
EPS(NY)3.86
Fwd EY4.08%
FCF(TTM)1.6
FCFY1.69%
OCF(TTM)3.13
OCFY3.32%
SpS36.86
BVpS25.79
TBVpS15.53
PEG (NY)2.54
PEG (5Y)91.42
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 | 5.13 |
F-Score7
WACC8.63%
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)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 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%