SENSIENT TECHNOLOGIES CORP (SXT)
US81725T1007 - Common Stock
Overall SXT gets a fundamental rating of 5 out of 10. We evaluated SXT against 83 industry peers in the Chemicals industry. While SXT has a great health rating, its profitability is only average at the moment. 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 a decent Return On Assets value of 4.52%, SXT is doing good in the industry, outperforming 73.49% of the companies in the same industry.
SXT has a Return On Equity of 8.52%. This is in the better half of the industry: SXT outperforms 68.67% of its industry peers.
SXT has a better Return On Invested Capital (7.69%) than 72.29% of its industry peers.
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 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 8.52% | ||
| ROIC | 7.69% |
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 has a better Profit Margin (6.16%) than 71.08% of its industry peers.
In the last couple of years the Profit Margin of SXT has declined.
The Operating Margin of SXT (12.52%) is better than 73.49% of its industry peers.
In the last couple of years the Operating Margin of SXT has declined.
SXT's Gross Margin of 31.40% is fine compared to the rest of the industry. SXT outperforms 63.86% 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 | 12.52% | ||
| PM (TTM) | 6.16% | ||
| GM | 31.4% |
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%
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.
Compared to 1 year ago, SXT has more shares outstanding
Compared to 5 years ago, SXT has less shares outstanding
SXT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.86 indicates that SXT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.86, SXT belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
SXT has a debt to FCF ratio of 5.96. This is a neutral value as SXT would need 5.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.96, SXT is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that SXT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, SXT is in line with its industry, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.98
WACC7.88%
2.3 Liquidity
A Current Ratio of 4.31 indicates that SXT has no problem at all paying its short term obligations.
SXT has a Current ratio of 4.31. This is amongst the best in the industry. SXT outperforms 89.16% of its industry peers.
A Quick Ratio of 1.71 indicates that SXT should not have too much problems paying its short term obligations.
SXT's Quick ratio of 1.71 is fine compared to the rest of the industry. SXT outperforms 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
SXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.27%.
Measured over the past years, SXT shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.16% on average per year.
Looking at the last year, SXT shows a small growth in Revenue. The Revenue has grown by 1.49% in the last year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)-12.27%
EPS 3Y0.83%
EPS 5Y-4.16%
EPS Q2Q%-1.25%
Revenue 1Y (TTM)1.49%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Sales Q2Q%4.24%
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 12.37% yearly.
SXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y6.45%
EPS Next 2Y9.47%
EPS Next 3Y12.17%
EPS Next 5Y12.37%
Revenue Next Year3.84%
Revenue Next 2Y3.77%
Revenue Next 3Y4.67%
Revenue Next 5Y4.84%
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
SXT is valuated quite expensively with a Price/Earnings ratio of 26.80.
SXT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SXT to the average of the S&P500 Index (24.41), we can say SXT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.29, the valuation of SXT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SXT is valued a bit more expensive than the industry average as 66.27% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, SXT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SXT indicates a slightly more expensive valuation: SXT is more expensive than 60.24% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SXT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 16.7 |
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.
A more expensive valuation may be justified as SXT's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)4.15
PEG (5Y)N/A
EPS Next 2Y9.47%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, SXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SXT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of SXT has a limited annual growth rate of 4.17%.
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)4.17%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
76.40% of the earnings are spent on dividend by SXT. This is not a sustainable payout ratio.
SXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.4%
EPS Next 2Y9.47%
EPS Next 3Y12.17%
SENSIENT TECHNOLOGIES CORP
NYSE:SXT (7/26/2024, 7:04:00 PM)
After market: 76.64 0 (0%)76.64
-3.94 (-4.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 22.29 | ||
| 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)4.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 8.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.52% | ||
| PM (TTM) | 6.16% | ||
| GM | 31.4% | ||
| 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.31 | ||
| Quick Ratio | 1.71 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-12.27%
EPS 3Y0.83%
EPS 5Y
EPS Q2Q%
EPS Next Y6.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.49%
Revenue growth 3Y3.02%
Revenue growth 5Y
Sales 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