Sensient Technologies (NYSE:SXT) - Share price, News & Analysis

SXT fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	3/6
Financial Health	5/6
Dividends	4/6

SXT Stock Overview

Rewards

Trading at 1.2% below our estimate of its fair value

Earnings are forecast to grow 11.48% per year

Risk Analysis

Has a high level of debt

Dividend of 1.96% is not well covered by earnings

Sensient Technologies Competitors

Nestlé

SWX:NESN

CHF316.6b

Unilever

LSE:ULVR

UK£90.3b

Kraft Heinz

NasdaqGS:KHC

US$48.5b

General Mills

NYSE:GIS

US$41.6b

Price History & Performance

Summary of all time highs, changes and price drops for Sensient Technologies
Historical stock prices
Current Share Price	US$83.82
52 Week High	US$106.32
52 Week Low	US$74.43
Beta	0.86
1 Month Change	0.072%
3 Month Change	5.37%
1 Year Change	-2.89%
3 Year Change	22.13%
5 Year Change	4.70%
Change since IPO	602.16%

Recent News & Updates

May 04

Returns On Capital Signal Difficult Times Ahead For Sensient Technologies (NYSE:SXT)

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Feb 24

Estimating The Intrinsic Value Of Sensient Technologies Corporation (NYSE:SXT)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sensient Technologies...

Shareholder Returns

	SXT	US Chemicals	US Market
7D	0.1%	-1.6%	-4.0%
1Y	-2.9%	-3.4%	-13.2%

Return vs Industry: SXT matched the US Chemicals industry which returned -3.4% over the past year.

Return vs Market: SXT exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is SXT's price volatile compared to industry and market?
SXT volatility
SXT Average Weekly Movement	4.2%
Chemicals Industry Average Movement	7.1%
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: SXT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SXT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1882	3,844	Paul Manning	https://www.sensient.com

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, the Asia Pacific, and internationally. It operates through three segments: Flavors & Extracts Group, Color Group, and Asia Pacific Group. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, personal care, and household-products industries.

Sensient Technologies Fundamentals Summary

How do Sensient Technologies's earnings and revenue compare to its market cap?
SXT fundamental statistics
Market Cap	US$3.52b
Earnings (TTM)	US$124.15m
Revenue (TTM)	US$1.38b

28.4x

P/E Ratio

2.6x

P/S Ratio

Is SXT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXT income statement (TTM)
Revenue	US$1.38b
Cost of Revenue	US$912.19m
Gross Profit	US$463.89m
Other Expenses	US$339.75m
Earnings	US$124.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)	2.95
Gross Margin	33.71%
Net Profit Margin	9.02%
Debt/Equity Ratio	55.9%

How did SXT perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

1.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SXT ($83.82) is trading below our estimate of fair value ($84.84)

Significantly Below Fair Value: SXT is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: SXT is poor value based on its Price-To-Earnings Ratio (28.4x) compared to the US Chemicals industry average (16.9x).

PE vs Market: SXT is poor value based on its Price-To-Earnings Ratio (28.4x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: SXT is poor value based on its PEG Ratio (2.5x)

Price to Book Ratio

PB vs Industry: SXT is overvalued based on its Price-To-Book Ratio (3.7x) compared to the US Chemicals industry average (2.3x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXT's forecast earnings growth (11.5% per year) is above the savings rate (1.9%).

Earnings vs Market: SXT's earnings (11.5% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: SXT's earnings are forecast to grow, but not significantly.

Revenue vs Market: SXT's revenue (5.3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: SXT's revenue (5.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SXT's Return on Equity is forecast to be low in 3 years time (16.6%).

Past Performance

How has Sensient Technologies performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

-1.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SXT has high quality earnings.

Growing Profit Margin: SXT's current net profit margins (9%) are higher than last year (9%).

Past Earnings Growth Analysis

Earnings Trend: SXT's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: SXT's earnings growth over the past year (3.1%) exceeds its 5-year average (-1.4% per year).

Earnings vs Industry: SXT earnings growth over the past year (3.1%) underperformed the Chemicals industry 30.2%.

Return on Equity

High ROE: SXT's Return on Equity (12.9%) is considered low.

Financial Health

How is Sensient Technologies's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: SXT's short term assets ($783.4M) exceed its short term liabilities ($214.4M).

Long Term Liabilities: SXT's short term assets ($783.4M) exceed its long term liabilities ($612.5M).

Debt to Equity History and Analysis

Debt Level: SXT's net debt to equity ratio (52.5%) is considered high.

Reducing Debt: SXT's debt to equity ratio has reduced from 69.7% to 55.9% over the past 5 years.

Debt Coverage: SXT's debt is well covered by operating cash flow (21.5%).

Interest Coverage: SXT's interest payments on its debt are well covered by EBIT (14.3x coverage).

Balance Sheet

Dividend

What is Sensient Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

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

1.96%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SXT's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: SXT's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

Stable Dividend: SXT's dividends per share have been stable in the past 10 years.

Growing Dividend: SXT's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.1%), SXT's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (122.9%), SXT's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.1yrs

Average management tenure

CEO

Paul Manning (46 yo)

9.58yrs

Tenure

US$7,062,124

Compensation

Mr. Paul Manning has been the Chief Executive Officer of Sensient Technologies Corporation since February 2, 2014 and as its President since October 18, 2012. Mr. Manning served as Chief Operating Officer...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD7.06M) is about average for companies of similar size in the US market ($USD6.83M).

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

Leadership Team

Experienced Management: SXT's management team is seasoned and experienced (5.1 years average tenure).

Board Members

Experienced Board: SXT's board of directors are considered experienced (8.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SXT 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	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31