Sensata Technologies Holding plc (ST)
Valuation Overview•Is Sensata Technologies Holding plc Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
ST demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-3.1% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 14.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $934.8M | -5.9% | -3.1% | +4.1% | +2.6% | |
| EBITDA | $191.3M | — | -5.9% | — | — | |
| Net Income | $87.1M | -75.6% | -53.5% | — | -21.4% | |
| EPS (Diluted) | $0.59 | -75.3% | -52.7% | -27.4% | -20.3% | |
| Free Cash Flow | $104.6M | +24.8% | +16.4% | +1.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 28.0% | 26.3% | 27.5% | 28.5% |
| Operating Margin | 14.2% | 12.8% | 14.1% | 15.2% |
| Net Margin | 1.3% | 1.3% | 4.2% | 7.3% |
| FCF Margin | 13.6% | 10.0% | 9.7% | 11.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.84 | $0.86 | +2.4% | ||
| Q1'26 | $0.86 | $0.88 | +2.3% | ||
| Q4'25 | $0.85 | $0.89 | +4.6% | ||
| Q3'25 | $0.84 | $0.87 | +3.6% | ||
| Q2'25 | $0.72 | $0.78 | +8.3% | ||
| Q1'25 | $0.76 | $0.76 | +0.0% | ||
| Q4'24 | $0.86 | $0.86 | +0.0% | ||
| Q3'24 | $0.93 | $0.93 | +0.0% |
Total return is +67.7% (1Y), outperforming the benchmark by +46.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +38.8% | +31.5% | — |
| 1Y | +67.7% | +46.9% | +1.7% |
| 3YCAGR | +4.4% | -14.1% | +3.3% |
| 5YCAGR | -2.9% | -14.0% | +3.4% |
| 10YCAGR | +3.8% | -10.5% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Sensata Technologies Holding plc (ST) valuation, health, and returns.
Sensata Technologies Holding plc is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -21.6% downside from DCF intrinsic value of $36.65)
Sensata Technologies Holding plc has multiple valuation anchors: DCF Intrinsic Value: $36.65 | Peer Relative Fair Value: $83.70 | Wall Street Analyst Target: $52.38 (implying +12.1% upside). A convergence of these signals offers higher conviction.
Sensata Technologies Holding plc displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of 2.0 (grey zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 7.2%.
Sensata Technologies Holding plc pays a 1.0% dividend yield, covered by a 225% payout ratio with 0 years of growth, supplemented by a 1.9% buyback yield.
Sensata Technologies Holding plc's current growth trajectory is Decelerating. The company achieved -5.9% 1Y revenue growth and -75.3% 1Y EPS growth, compared to its 3Y revenue CAGR of -3.1%.
Wall Street consensus is Buy based on 29 analysts, beating EPS expectations in 67% of recent quarters with a 5-quarter streak. The consensus price target represents a +12.1% change from current levels.
Investment risks for Sensata Technologies Holding plc include: -14.9% 1-year max drawdown, high beta (2.09x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 2.09x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.