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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.1%

SXT

-0.8%

US Chemicals

-0.6%

US Market


1 Year Return

-10.6%

SXT

-14.3%

US Chemicals

0.7%

US Market

SXT outperformed the Chemicals industry which returned -14.3% over the past year.

SXT underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

SXTIndustryMarket
7 Day-1.1%-0.8%-0.6%
30 Day6.6%5.9%2.9%
90 Day-5.8%0.2%1.3%
1 Year-8.7%-10.6%-0.9%-14.3%2.9%0.7%
3 Year-2.6%-7.9%43.4%17.1%44.6%35.2%
5 Year43.4%31.2%37.6%7.2%61.9%44.2%

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

2 weeks ago | Simply Wall St

Does Market Volatility Impact Sensient Technologies Corporation's (NYSE:SXT) Share Price?

Valuation

Is Sensient Technologies undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sensient Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sensient Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sensient Technologies is good value based on earnings compared to the US Chemicals industry average.

Sensient Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sensient Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

Sensient Technologies is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sensient Technologies's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Sensient Technologies's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Sensient Technologies's revenue growth is positive but not above the United States of America market average.

Sensient Technologies's earnings growth is positive but not above the United States of America market average.

Sensient Technologies's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sensient Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sensient Technologies performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sensient Technologies's year on year earnings growth rate has been positive over the past 5 years.

Sensient Technologies's 1-year earnings growth exceeds its 5-year average (19.7% vs 9%)

Sensient Technologies's earnings growth has exceeded the US Chemicals industry average in the past year (19.7% vs -2.4%).


Return on Equity

Sensient Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sensient Technologies used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Sensient Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sensient Technologies's financial position?


Financial Position Analysis

Sensient Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sensient Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sensient Technologies's level of debt (75.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (43.1% vs 75.4% today).

Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sensient Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Sensient Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Paul Manning (44yo)

5.6yrs

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

Paul's remuneration is about average for companies of similar size in United States of America.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

49.5yo

Average Age

The tenure for the Sensient Technologies management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

67.5yo

Average Age

The tenure for the Sensient Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$25,83708 May 19
Thierry Hoang
EntityIndividual
Shares357
Max PriceUS$72.37
BuyUS$64,63025 Oct 18
Joseph Carleone
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$64.63
BuyUS$128,04022 Oct 18
Deborah McKeithan-Gebhardt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$64.02

Ownership Breakdown


Management Team

  • Steve Rolfs (54yo)

    Senior VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$1.62m
  • Paul Manning (44yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$4.61m
  • Michael Geraghty (57yo)

    President of Color Group

    • Tenure: 6.9yrs
    • Compensation: US$1.16m
  • John Manning (50yo)

    VP, General Counsel & Secretary

    • Tenure: 3.4yrs
    • Compensation: US$898.43k
  • Amy Jones (49yo)

    VP of Human Resources & Senior Counsel

    • Tenure: 1.4yrs
    • Compensation: US$1.07m
  • E. Mitchell (54yo)

    President of Flavors & Fragrances Group

    • Tenure: 1yrs
  • Tobin Tornehl (45yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0.8yrs
  • Amy Agallar (41yo)

    VP & Treasurer

    • Tenure: 0.7yrs

Board Members

  • G. Brown (79yo)

    Independent Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$224.05k
  • Essie Whitelaw (71yo)

    Director

    • Tenure: 26.7yrs
    • Compensation: US$203.05k
  • Joe Carleone (73yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$208.05k
  • Scott Morrison (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$206.55k
  • Elaine Wedral (75yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: US$201.05k
  • Edward Cichurski (77yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: US$212.55k
  • Donald Landry (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$197.55k
  • Deborah McKeithan-Gebhardt (60yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$188.05k
  • Paul Manning (44yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$4.61m
  • Mario Ferruzzi (44yo)

    Director

    • Tenure: 3.8yrs
    • 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$2.915b
  • 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 Analysis2019/09/21 23:42
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.