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ST

Sensata Technologies Holding NYSE:ST Stock Report

Last Price

US$40.77

Market Cap

US$6.3b

7D

8.1%

1Y

-27.8%

Updated

06 Oct, 2022

Data

Company Financials +
ST fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends2/6

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.

Sensata Technologies Holding plc Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sensata Technologies Holding
Historical stock prices
Current Share PriceUS$40.77
52 Week HighUS$65.58
52 Week LowUS$36.94
Beta1.27
1 Month Change3.37%
3 Month Change-1.92%
1 Year Change-27.82%
3 Year Change-13.18%
5 Year Change-16.37%
Change since IPO120.38%

Recent News & Updates

Oct 03
When Should You Buy Sensata Technologies Holding plc (NYSE:ST)?

When Should You Buy Sensata Technologies Holding plc (NYSE:ST)?

Sensata Technologies Holding plc ( NYSE:ST ), is not the largest company out there, but it saw significant share price...

Sep 19

Some Headwinds For Sensata Technologies

Summary The company has promising tailwinds from electrification and IoT but is going through a soft patch that might very well get worse near-term. However, the company still manages to outperform the markets on the basis of additional content and acquisitions. The shares are fairly cheap, and the company is well equipped to deal with the soft market. So we don't see all that much risk, but no immediate catalyst to take the shares significantly higher still, this is more for when a market recovery comes in sight. Sensata Technologies (ST) designs and produces sensors mainly for the automotive industry and more especially for EVs, but it also sells to the wider electrification market and industrial processes, aerospace and heavy vehicles, and off-road. The company is set to do well because they have a lot of tailwinds from their markets and manage to outgrow these with new products and also on the back of acquisitions. FinViz Growth The pandemic produced a slump but there was a particularly vigorous recovery in 2021, which produces difficult comps for growth this year, hence the meager 3.5% revenue growth in Q1 and even less in Q2 Data by YCharts However, despite the difficult comps management still expects some growth this year (albeit not in Q2) of 8%-12% (organic 6%-9%). We see two main growth vectors: Megatrends like electrification and insights New products M&A The expected growth from these areas is significant, from the Q2CC: We continue to expect over 50% growth in our electrification revenue this year and over 100% revenue growth insights. This doesn't come falling out of thin air but is the result of considerable investments, estimated at $65M-$70M this year to design and develop differentiated solutions. Acquisitions There certainly have been acquisitions: Xirgo Technologies for $400M (closed April 2021) Spear Power System (November 2021) SmartWitness Holding (November 2021) Elastic M2M (February 2022) Dynapower for $580M in cash (April 2022, closing in July) They also divested Qinex semiconductor thermal testing control business to Boyd Corporation for $298M. Qinex has a $40M revenue run rate in H2 and 30% operating margin (compared to Dynapower's $50M in revenue and about 20% operating margin), benefiting from the semiconductor cycle. Electrification and Dynapower The main vector is the shift to EVs boosting sensor content but it's not limited to this as there is a wider electrification market that the company addresses: ST Q1/22 earnings deck In order to address the wider electrification market, the company acquired Dynapower: ST earnings deck The all-cash ($580M) acquisition closed in July and it is a significant acquisition also in financial terms (Q2CC): Dynapower is currently on a run rate to generate more than $100 million in annualized revenue and approximately 20% operating margins, while growing more than 30% per year over the next several years. The acquisition gives Sensata a considerable boost in its exposure to electrification, especially in segments beyond EVs. Management believes that it can grow this segment to a $2B business by 2026. ST Q1/22 earnings deck It's growing at a 40% CAGR, with $300M of that coming from Dynapower (and $200M from other acquisitions), which implies a hefty 3x revenue growth between now and then. How do we get there? Well, apart from the 25% market growth already providing a powerful tailwind, management expects strong revenue synergies from the combination of Dynapower's capabilities combined with Sensata's global presence and manufacturing expertise, and its confidence stems from new business wins to date. It is always nice to see this kind of target, but realities on the ground can be quite a bit harder and circumstances change. What is clear though is that whether it's at 40% CAGR or 25% CAGR, their electrification business is set for a lengthy and considerable expansion. The shift from combustion to EV-driven vehicles boosts the company's addressable market and growth as EVs require much higher content. This year the company expects revenue from electrification to grow by 50%+. New products Apart from the Dynapower acquisition, the growth in electrification is getting another boost from the introduction of new products, like their high voltage junction boxes: ST Q2/22 earnings deck This is a whole new product category and complex products which are designed in cooperation with their OEM customers. They had a very large ($150M+ annual revenue) win from an American customer although the revenue will only arrive from 2025 onwards. Insights ST Q1/22 earnings deck Insights is another high-growth area, it's basically IoT applications with connected sensors generating data that provide insights into all kinds of stuff, for example (company website): Sensata’s wireless sensors can collect information through a vehicle-area network and allow fleet managers to proactively monitor the health of their vehicles and conduct proactive maintenance, such as the location of assets being able to identify when a tire is at high risk of bursting. Insights generated $19M in new business in Q1 and is expected to double(!) 2021 revenue of $75M this year to $150M. How do they get there? Well, for starters the company was awarded $40M+ of annual new tire management business from a leading electrification manufacturer. Their solution is unique in the market as it combines pressure sensing with temperature and tread depth in a single sensor. Their insights business is also boosted by the acquisition of Elastic M2M in Q1 and we have to say that looks interesting (Q1CC): Elastic M2M is a pioneer in delivering flexible scalable and cost-effective and intuitive IoT analytics for telematics service providers and their end customers. Their IoT cloud platform utilizes machine learning and artificial intelligence capabilities to digest and analyze an increasingly rich amount of data from connected assets to enable customers to make better operational decisions. We see sizable markets that we can pursue with these broadened technology solutions.

Sep 04
Does Sensata Technologies Holding (NYSE:ST) Have A Healthy Balance Sheet?

Does Sensata Technologies Holding (NYSE:ST) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 21
Is There An Opportunity With Sensata Technologies Holding plc's (NYSE:ST) 44% Undervaluation?

Is There An Opportunity With Sensata Technologies Holding plc's (NYSE:ST) 44% Undervaluation?

Does the August share price for Sensata Technologies Holding plc ( NYSE:ST ) reflect what it's really worth? Today, we...

Shareholder Returns

STUS ElectricalUS Market
7D8.1%5.7%3.3%
1Y-27.8%-19.7%-20.4%

Return vs Industry: ST underperformed the US Electrical industry which returned -16.9% over the past year.

Return vs Market: ST underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is ST's price volatile compared to industry and market?
ST volatility
ST Average Weekly Movement5.3%
Electrical Industry Average Movement10.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
191621,000Jeff Cotehttps://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 plc Fundamentals Summary

How do Sensata Technologies Holding's earnings and revenue compare to its market cap?
ST fundamental statistics
Market CapUS$6.33b
Earnings (TTM)US$254.21m
Revenue (TTM)US$3.88b

24.9x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ST income statement (TTM)
RevenueUS$3.88b
Cost of RevenueUS$2.58b
Gross ProfitUS$1.30b
Other ExpensesUS$1.05b
EarningsUS$254.21m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.64
Gross Margin33.62%
Net Profit Margin6.55%
Debt/Equity Ratio139.5%

How did ST perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

7%

Payout Ratio