Sensata Technologies Holding (NYSE:ST) - Share price, News & Analysis

ST fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	1/6

ST Stock Overview

Sensata Technologies Holding plc develops, manufactures, and sells sensors, sensor-based solutions, controls, and other products in the Americas, Europe, Asia, and internationally.

Rewards

Trading at 39.4% below our estimate of its fair value

Earnings are forecast to grow 36.87% per year

Earnings grew by 58.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Sensata Technologies Holding Competitors

AMETEK

NYSE:AME

US$27.1b

Rockwell Automation

NYSE:ROK

US$23.2b

Hubbell

NYSE:HUBB

US$10.0b

Regal Rexnord

NYSE:RRX

US$8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Sensata Technologies Holding
Historical stock prices
Current Share Price	US$44.94
52 Week High	US$65.58
52 Week Low	US$42.67
Beta	1.31
1 Month Change	-8.96%
3 Month Change	-21.37%
1 Year Change	-21.80%
3 Year Change	1.77%
5 Year Change	10.96%
Change since IPO	142.92%

Recent News & Updates

May 16

Sensata Technologies Holding (NYSE:ST) Has A Pretty Healthy Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 15

Sensata Technologies: Sensors On

Sensata Technologies has seen a softer performance in the first quarter, but the overall guidance still provides comfort. The company is pursuing deals again, pushing up leverage ratios to full ratios here. The improved positioning and modest valuation multiples really do start to create appeal here.

Shareholder Returns

	ST	US Electrical	US Market
7D	-0.3%	-1.1%	-2.7%
1Y	-21.8%	-20.7%	-12.9%

Return vs Industry: ST underperformed the US Electrical industry which returned -20.7% over the past year.

Return vs Market: ST underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is ST's price volatile compared to industry and market?
ST volatility
ST Average Weekly Movement	5.1%
Electrical Industry Average Movement	11.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: ST is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ST's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1916	21,000	Jeff Cote	https://www.sensata.com

Sensata Technologies Holding plc develops, manufactures, and sells sensors, sensor-based solutions, controls, and other products in the Americas, Europe, Asia, and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment develops and manufactures sensors, high-voltage contactors, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain (engine/transmission), and exhaust management.

Sensata Technologies Holding Fundamentals Summary

How do Sensata Technologies Holding's earnings and revenue compare to its market cap?
ST fundamental statistics
Market Cap	US$7.05b
Earnings (TTM)	US$332.29m
Revenue (TTM)	US$3.85b

21.2x

P/E Ratio

1.8x

P/S Ratio

Is ST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ST income statement (TTM)
Revenue	US$3.85b
Cost of Revenue	US$2.55b
Gross Profit	US$1.31b
Other Expenses	US$973.12m
Earnings	US$332.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.12
Gross Margin	33.87%
Net Profit Margin	8.62%
Debt/Equity Ratio	137.4%

How did ST perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Sensata Technologies Holding undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ST ($44.94) is trading below our estimate of fair value ($74.19)

Significantly Below Fair Value: ST is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ST is poor value based on its PE Ratio (21.2x) compared to the US Electrical industry average (17.9x).

PE vs Market: ST is poor value based on its PE Ratio (21.2x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: ST is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: ST's PB Ratio (2.3x) is in line with the US Electrical industry average.

Future Growth

How is Sensata Technologies Holding forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ST's forecast earnings growth (36.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ST's earnings (36.9% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ST's revenue (7.6% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: ST's revenue (7.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ST's Return on Equity is forecast to be low in 3 years time (19.1%).

Past Performance

How has Sensata Technologies Holding performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ST has high quality earnings.

Growing Profit Margin: ST's current net profit margins (8.6%) are higher than last year (6.5%).

Past Earnings Growth Analysis

Earnings Trend: ST's earnings have declined by 8.1% per year over the past 5 years.

Accelerating Growth: ST's earnings growth over the past year (58.5%) exceeds its 5-year average (-8.1% per year).

Earnings vs Industry: ST earnings growth over the past year (58.5%) exceeded the Electrical industry 34%.

Return on Equity

High ROE: ST's Return on Equity (10.8%) is considered low.

Financial Health

How is Sensata Technologies Holding's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ST's short term assets ($3.1B) exceed its short term liabilities ($840.0M).

Long Term Liabilities: ST's short term assets ($3.1B) do not cover its long term liabilities ($4.7B).

Debt to Equity History and Analysis

Debt Level: ST's net debt to equity ratio (85%) is considered high.

Reducing Debt: ST's debt to equity ratio has reduced from 159.7% to 137.4% over the past 5 years.

Debt Coverage: ST's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: ST's interest payments on its debt are well covered by EBIT (3.4x coverage).

Balance Sheet

Dividend

What is Sensata Technologies Holding current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.98%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ST's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: ST's dividend (0.98%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether ST's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ST's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (20.1%), ST's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure

CEO

Jeff Cote (54 yo)

3.33yrs

Tenure

US$6,798,263

Compensation

Mr. Jeffrey J. Cote, also known as Jeff, CPA, has been the Chief Operating Officer and Executive Vice President of Sensata Technologies B.V. since July 2012 and November 2015 respectively. Mr. Cote serves...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD6.80M) is about average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ST's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: ST's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31