NYSE:SXT

Stock Analysis Report

Sensient Technologies

Executive Summary

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and fragrances in North America, Europe, the Asia Pacific, and internationally.

Rewards

Earnings are forecast to grow 5.89% per year

Pays a high and reliable dividend of 2.44%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Sensient Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SXT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

SXT

0.5%

US Chemicals

0.6%

US Market


1 Year Return

10.8%

SXT

3.5%

US Chemicals

20.8%

US Market

Return vs Industry: SXT exceeded the US Chemicals industry which returned 3.5% over the past year.

Return vs Market: SXT underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

SXTIndustryMarket
7 Day-0.5%0.5%0.6%
30 Day0.6%-1.6%2.5%
90 Day-8.3%1.5%4.9%
1 Year13.3%10.8%19.2%3.5%23.5%20.8%
3 Year-14.0%-18.9%34.8%9.2%46.5%37.0%
5 Year14.4%4.5%45.6%14.3%64.6%46.5%

Price Volatility Vs. Market

How volatile is Sensient Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

20.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SXT ($63.89) is trading above our estimate of fair value ($52.06)

Significantly Below Fair Value: SXT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SXT is poor value based on its PE Ratio (20.5x) compared to the Chemicals industry average (20.4x).

PE vs Market: SXT is poor value based on its PE Ratio (20.5x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SXT is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: SXT is overvalued based on its PB Ratio (3x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Sensient Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXT's forecast earnings growth (5.9% per year) is above the savings rate (1.7%).

Earnings vs Market: SXT's earnings (5.9% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: SXT's revenue (2.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SXT's revenue (2.3% 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 (13.5%).


Next Steps

Past Performance

How has Sensient Technologies performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXT has high quality earnings.

Growing Profit Margin: SXT's current net profit margins (9.9%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: SXT's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: SXT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SXT had negative earnings growth (-4.4%) over the past year, making it difficult to compare to the Chemicals industry average (-17%).


Return on Equity

High ROE: SXT's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sensient Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SXT's short term assets ($792.4M) exceed its short term liabilities ($192.2M).

Long Term Liabilities: SXT's short term assets ($792.4M) exceed its long term liabilities ($689.7M).


Debt to Equity History and Analysis

Debt Level: SXT's debt to equity ratio (71.1%) is considered high.

Reducing Debt: SXT's debt to equity ratio has increased from 41.9% to 71.1% over the past 5 years.

Debt Coverage: SXT's debt is well covered by operating cash flow (31.7%).

Interest Coverage: SXT's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

Inventory Level: SXT has a high level of physical assets or inventory.

Debt Coverage by Assets: SXT's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.44%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: SXT's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SXT's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), SXT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXT's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

What is the CEO of Sensient Technologies's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Paul Manning (44yo)

5.8yrs

Tenure

US$4,612,675

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 ($USD4.61M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

2.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: SXT's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

67.5yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

SellUS$25,83708 May 19
Thierry Hoang
EntityIndividual
Shares357
Max PriceUS$72.37

Ownership Breakdown

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


Management Team

  • Steve Rolfs (54yo)

    Senior VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$1.62m
  • Paul Manning (44yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$4.61m
  • Michael Geraghty (57yo)

    President of Color Group

    • Tenure: 7.2yrs
    • Compensation: US$1.16m
  • John Manning (50yo)

    VP, General Counsel & Secretary

    • Tenure: 3.7yrs
    • Compensation: US$898.43k
  • Amy Jones (49yo)

    VP of Human Resources & Senior Counsel

    • Tenure: 1.7yrs
    • Compensation: US$1.07m
  • E. Mitchell (54yo)

    President of Flavors & Fragrances Group

    • Tenure: 1.3yrs
  • Tobin Tornehl (45yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 1.1yrs
  • Amy Agallar (41yo)

    VP & Treasurer

    • Tenure: 0.9yrs

Board Members

  • G. Brown (79yo)

    Independent Lead Director

    • Tenure: 2.5yrs
    • Compensation: US$224.05k
  • Essie Whitelaw (71yo)

    Independent Director

    • Tenure: 26.9yrs
    • Compensation: US$203.05k
  • Joe Carleone (73yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$208.05k
  • Scott Morrison (57yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$206.55k
  • Elaine Wedral (75yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$201.05k
  • Edward Cichurski (77yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$212.55k
  • Donald Landry (64yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$197.55k
  • Deborah McKeithan-Gebhardt (60yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$188.05k
  • Paul Manning (44yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$4.61m
  • Mario Ferruzzi (44yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$189.55k

Company Information

Sensient Technologies Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sensient Technologies Corporation
  • Ticker: SXT
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$2.711b
  • Shares outstanding: 42.32m
  • Website: https://www.sensient.com

Number of Employees


Location

  • Sensient Technologies Corporation
  • 777 East Wisconsin Avenue
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SXTNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1977
SSFDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1977

Biography

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and fragrances in North America, Europe, the Asia Pacific, and internationally. It op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:49
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.