SENSIENT TECHNOLOGIES CORP (SXT)
US81725T1007 - Common Stock
We assign a fundamental rating of 5 out of 10 to SXT. SXT was compared to 85 industry peers in the Chemicals industry. SXT has only an average score on both its financial health and profitability. SXT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years SXT has been profitable.
SXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SXT has a better Return On Assets (4.64%) than 64.71% of its industry peers.
SXT has a Return On Equity of 8.87%. This is in the better half of the industry: SXT outperforms 63.53% of its industry peers.
With a decent Return On Invested Capital value of 7.67%, SXT is doing good in the industry, outperforming 71.76% 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 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 8.87% | ||
| ROIC | 7.67% |
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 67.06% of its industry peers.
SXT's Profit Margin has declined in the last couple of years.
The Operating Margin of SXT (12.56%) is better than 71.76% of its industry peers.
SXT's Operating Margin has declined in the last couple of years.
SXT has a Gross Margin of 31.60%. This is in the better half of the industry: SXT outperforms 67.06% 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 | 12.56% | ||
| PM (TTM) | 6.41% | ||
| GM | 31.6% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SXT is still creating some value.
SXT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SXT has less shares outstanding
Compared to 1 year ago, SXT has an improved debt to assets ratio.
2.2 Solvency
SXT has an Altman-Z score of 4.48. This indicates that SXT is financially healthy and has little risk of bankruptcy at the moment.
SXT has a better Altman-Z score (4.48) than 89.41% of its industry peers.
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.
SXT's Debt to FCF ratio of 8.05 is in line compared to the rest of the industry. SXT outperforms 58.82% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that SXT is somewhat dependend on debt financing.
SXT's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. SXT outperforms 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.95
WACC8.11%
2.3 Liquidity
SXT has a Current Ratio of 3.96. This indicates that SXT is financially healthy and has no problem in meeting its short term obligations.
SXT has a better Current ratio (3.96) than 89.41% 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's Quick ratio of 1.43 is in line compared to the rest of the industry. SXT outperforms 55.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.96 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
SXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.07%.
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.
The Revenue has been growing slightly by 1.35% in the past year.
Measured over the past years, SXT shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)-14.07%
EPS 3Y0.83%
EPS 5Y-4.16%
EPS growth Q2Q-26.09%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.02%
Revenue growth 5Y0.98%
Revenue growth Q2Q0.16%
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 11.79% yearly.
SXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y4.7%
EPS Next 2Y7.52%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue Next Year2.15%
Revenue Next 2Y2.99%
Revenue Next 3Y4.57%
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
With a Price/Earnings ratio of 24.52, SXT is valued on the expensive side.
SXT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.20, SXT is valued at the same level.
SXT is valuated rather expensively with a Price/Forward Earnings ratio of 23.42.
SXT's Price/Forward Earnings ratio is in line with the industry average.
SXT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
SXT's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SXT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.41 | ||
| EV/EBITDA | 14.87 |
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.
PEG (NY)5.22
PEG (5Y)N/A
EPS Next 2Y7.52%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
SXT has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
SXT's Dividend Yield is a higher than the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.44, SXT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of SXT has a limited annual growth rate of 4.17%.
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)4.17%
Div Incr Years0
Div Non Decr Years19
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 2Y7.52%
EPS Next 3Y11.79%
SENSIENT TECHNOLOGIES CORP
NYSE:SXT (4/26/2024, 3:20:03 PM)
After market: 70.36 0 (0%)70.36
+0.72 (+1.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 23.42 | ||
| 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)5.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 8.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.56% | ||
| PM (TTM) | 6.41% | ||
| GM | 31.6% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| 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)-14.07%
EPS 3Y0.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.7%
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