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 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While SXT belongs to the best of the industry regarding profitability, 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.
In the past 5 years SXT has always been profitable.
In the past 5 years SXT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SXT (6.13%) is better than 85.88% of its industry peers.
SXT's Return On Equity of 11.71% is amongst the best of the industry. SXT outperforms 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.
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 6.84%.
| 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 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SXT's Profit Margin has improved in the last couple of years.
The Operating Margin of SXT (12.93%) is better than 70.59% of its industry peers.
In the last couple of years the Operating Margin of SXT has grown nicely.
SXT's Gross Margin of 32.93% is fine compared to the rest 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.
The number of shares outstanding for SXT has been increased compared to 1 year ago.
SXT has less shares outstanding than it did 5 years ago.
SXT has a better debt/assets ratio than last year.
2.2 Solvency
SXT has an Altman-Z score of 5.16. This indicates that SXT is financially healthy and has little risk of bankruptcy at the moment.
SXT's Altman-Z score of 5.16 is amongst the best of the industry. SXT outperforms 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.
The Debt to FCF ratio of SXT (10.32) is better than 63.53% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that SXT is somewhat dependend on debt financing.
SXT's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. SXT outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.32 | ||
| Altman-Z | 5.16 |
ROIC/WACC0.93
WACC8.69%
2.3 Liquidity
SXT has a Current Ratio of 4.34. 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 4.34, SXT belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that SXT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.74, SXT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 0.34% on average over the past years.
The Revenue has been growing slightly by 6.30% in the past year.
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 15.06% 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 Y12.18%
EPS Next 2Y13.12%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y4.54%
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
The Price/Earnings ratio is 31.13, which means the current valuation is very expensive for SXT.
Based on the Price/Earnings ratio, SXT is valued a bit more expensive than 61.18% of the companies in the same industry.
SXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.90, the valuation of SXT can be described as rather expensive.
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 60.00% 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 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.13 | ||
| Fwd PE | 24.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SXT is valued a bit more expensive than the industry average as 65.88% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as SXT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.87 | ||
| EV/EBITDA | 18.02 |
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 decent 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)2.56
PEG (5Y)92.77
EPS Next 2Y13.12%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, SXT has a reasonable but not impressive dividend return.
SXT's Dividend Yield is comparable with the industry average which is at 3.75.
Compared to the average S&P500 Dividend Yield of 2.44, SXT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of SXT has a limited annual growth rate of 2.28%.
SXT has paid a dividend for at least 10 years, which is 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
54.19% of the earnings are spent on dividend by SXT. 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%
95.89
-0.48 (-0.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.73%
Inst Owner Change2.15%
Ins Owners1.29%
Ins Owner Change2.01%
Market Cap4.07B
Analysts83.33
Price Target97.58 (1.76%)
Short Float %3.17%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-0.35%
PT rev (3m)11.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.13 | ||
| Fwd PE | 24.9 | ||
| P/S | 2.6 | ||
| P/FCF | 59.87 | ||
| P/OCF | 30.6 | ||
| P/B | 3.72 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)3.08
EY3.21%
EPS(NY)3.85
Fwd EY4.02%
FCF(TTM)1.6
FCFY1.67%
OCF(TTM)3.13
OCFY3.27%
SpS36.86
BVpS25.79
TBVpS15.53
PEG (NY)2.56
PEG (5Y)92.77
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 | 5.16 |
F-Score7
WACC8.69%
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)7.69%
EPS 3Y-1.4%
EPS 5Y0.34%
EPS Q2Q%8.86%
EPS Next Y12.18%
EPS Next 2Y13.12%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.3%
Revenue growth 3Y4.1%
Revenue growth 5Y3.32%
Sales Q2Q%1.99%
Revenue Next Year3.81%
Revenue Next 2Y4.54%
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%