NYSE:SXT

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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. More Details


Snowflake Analysis

Excellent balance sheet average 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

SXT

2.5%

US Chemicals

1.8%

US Market


1 Year Return

-13.8%

SXT

8.6%

US Chemicals

14.2%

US Market

Return vs Industry: SXT underperformed the US Chemicals industry which returned 8.6% over the past year.

Return vs Market: SXT underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

SXTIndustryMarket
7 Day4.3%2.5%1.8%
30 Day8.7%4.5%0.04%
90 Day17.8%16.8%9.8%
1 Year-11.2%-13.8%11.1%8.6%16.7%14.2%
3 Year-17.1%-22.7%23.0%-0.4%41.6%32.2%
5 Year6.1%-4.1%83.0%41.9%90.9%69.5%

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?

37.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SXT ($59.39) is trading above our estimate of fair value ($45.98)

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 (37.9x) compared to the US Chemicals industry average (26.3x).

PE vs Market: SXT is poor value based on its PE Ratio (37.9x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SXT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SXT is overvalued based on its PB Ratio (2.9x) 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?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXT's forecast earnings growth (20.8% per year) is above the savings rate (2.2%).

Earnings vs Market: SXT's earnings (20.8% per year) are forecast to grow slower than the US market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXT's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: SXT's revenue is forecast to decline over the next 3 years (-2.1% 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%).


Next Steps

Past Performance

How has Sensient Technologies performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXT has a large one-off loss of $46.7M impacting its June 30 2020 financial results.

Growing Profit Margin: SXT's current net profit margins (5.1%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: SXT's earnings have declined by 0.6% 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 (-54.9%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).


Return on Equity

High ROE: SXT's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Sensient Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SXT's short term assets ($738.3M) exceed its short term liabilities ($213.2M).

Long Term Liabilities: SXT's short term assets ($738.3M) exceed its long term liabilities ($599.3M).


Debt to Equity History and Analysis

Debt Level: SXT's debt to equity ratio (62.6%) is considered high.

Reducing Debt: SXT's debt to equity ratio has reduced from 62.8% to 62.6% over the past 5 years.

Debt Coverage: SXT's debt is well covered by operating cash flow (38.7%).

Interest Coverage: SXT's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SXT's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: SXT's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (4.65%).


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 high payout ratio (97.6%), SXT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXT's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Paul Manning (45 yo)

6.58yrs

Tenure

US$5,819,139

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 ($USD5.82M) is about average for companies of similar size in the US market ($USD5.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Manning
Chairman6.58yrsUS$5.82m0.17%
$ 4.3m
Stephen Rolfs
Senior VP & CFO5.58yrsUS$1.68m0.25%
$ 6.2m
John Manning
Senior VP4.42yrsUS$1.03m0.016%
$ 399.7k
Michael Geraghty
President of Color Group7.92yrsUS$1.26m0.032%
$ 814.8k
E. Mitchell
President of Flavors & Fragrances Group2yrsUS$1.11m0.0019%
$ 49.1k
Tobin Tornehl
VP, Controller & Chief Accounting Officer1.83yrsno data0.0041%
$ 104.1k
Amy Jones
VP of Human Resources & Senior Counsel2.42yrsUS$1.07m0.00010%
$ 2.5k
Amy Agallar
VP & Treasurer1.67yrsno datano data

3.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SXT's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Manning
Chairman6.58yrsUS$5.82m0.17%
$ 4.3m
Essie Whitelaw
Independent Director27.67yrsUS$239.19k0.047%
$ 1.2m
Joseph Carleone
Independent Lead Director0.50yrUS$294.06k0.033%
$ 822.8k
Scott Morrison
Independent Director3.75yrsUS$206.83k0.013%
$ 315.5k
Elaine Wedral
Independent Director14.42yrsUS$208.33k0.067%
$ 1.7m
Edward Cichurski
Independent Director7.42yrsUS$212.83k0.027%
$ 677.4k
Donald Landry
Independent Director4.75yrsUS$197.83k0.014%
$ 344.1k
Deborah McKeithan-Gebhardt
Independent Director6.67yrsUS$210.89k0.028%
$ 713.4k
Carol Jackson
Independent Director0.75yrUS$7.63k0.0048%
$ 121.3k
Mario Ferruzzi
Independent Director4.75yrsUS$199.92k0.014%
$ 362.5k

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: SXT's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


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$2.516b
  • Shares outstanding: 42.36m
  • Website: https://www.sensient.com

Number of Employees


Location

  • Sensient Technologies Corporation
  • 777 East Wisconsin Avenue
  • Milwaukee
  • Wisconsin
  • 53202-5304
  • 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 Analysis2020/09/18 05:48
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.