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Sensient Technologies

Market Cap

US$3.4b

Last Updated

2021/04/16 22:17 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


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 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.


Market Performance


7 Day Return

2.2%

SXT

2.9%

US Chemicals

1.3%

US Market


1 Year Return

84.1%

SXT

70.9%

US Chemicals

53.9%

US Market

Return vs Industry: SXT exceeded the US Chemicals industry which returned 70.9% over the past year.

Return vs Market: SXT exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

SXTIndustryMarket
7 Day2.2%2.9%1.3%
30 Day0.3%3.8%3.3%
90 Day8.0%7.6%8.9%
1 Year89.2%84.1%75.1%70.9%56.6%53.9%
3 Year24.5%15.9%41.0%14.7%64.4%53.6%
5 Year32.8%19.7%95.5%49.1%120.4%95.7%

Long-Term 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?

31.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SXT ($81.17) is trading above our estimate of fair value ($78.98)

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 (31.4x) compared to the US Chemicals industry average (28x).

PE vs Market: SXT is poor value based on its PE Ratio (31.4x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SXT is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SXT is overvalued based on its PB Ratio (3.7x) compared to the US Chemicals industry average (2.8x).


Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXT's forecast earnings growth (12% per year) is above the savings rate (2%).

Earnings vs Market: SXT's earnings (12% per year) are forecast to grow slower than the US market (18.1% per year).

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

Revenue vs Market: SXT's revenue (2.1% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SXT's revenue (2.1% 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 (14.8%).


Past Performance

How has Sensient Technologies performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXT has high quality earnings.

Growing Profit Margin: SXT's current net profit margins (8.2%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: SXT's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: SXT's earnings growth over the past year (33.6%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: SXT earnings growth over the past year (33.6%) exceeded the Chemicals industry 3.3%.


Return on Equity

High ROE: SXT's Return on Equity (11.7%) is considered low.


Financial Health

How is Sensient Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SXT's short term assets ($741.6M) exceed its short term liabilities ($216.0M).

Long Term Liabilities: SXT's short term assets ($741.6M) exceed its long term liabilities ($590.6M).


Debt to Equity History and Analysis

Debt Level: SXT's debt to equity ratio (56.4%) is considered high.

Reducing Debt: SXT's debt to equity ratio has reduced from 75% to 56.4% over the past 5 years.

Debt Coverage: SXT's debt is well covered by operating cash flow (41.5%).

Interest Coverage: SXT's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SXT's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: SXT's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 reasonable payout ratio (60.3%), SXT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXT's dividends in 3 years are forecast to be well covered by earnings (48.2% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Paul Manning (45 yo)

7.17yrs

Tenure

US$7,304,550

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 ($USD7.30M) is above average for companies of similar size in the US market ($USD5.13M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SXT's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: SXT's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SXT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.434b
  • Shares outstanding: 42.42m
  • Website: https://www.sensient.com

Number of Employees


Location

  • Sensient Technologies Corporation
  • 777 East Wisconsin Avenue
  • Suite 1100
  • Milwaukee
  • Wisconsin
  • 53202-5304
  • United States

Listings


Biography

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 inter...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:17
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.