Sensient Technologies Corporation (SXT)
Valuation Overview•Is Sensient Technologies Corporation Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 51/100, reflecting stable operating margins and manageable leverage.
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 highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong dividend yield, though free cash flow coverage appears tight.
SXT demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 13.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $435.8M | +3.5% | +3.9% | +3.9% | +1.6% | |
| EBITDA | $82.3M | — | +2.5% | — | — | |
| Net Income | $44.2M | +7.9% | -1.5% | — | +2.3% | |
| EPS (Diluted) | $1.04 | +7.5% | -1.8% | +4.1% | +3.2% | |
| Free Cash Flow | -$42.4M | -60.8% | — | -25.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 33.8% | 32.5% | 32.9% | 33.2% |
| Operating Margin | 13.3% | 11.9% | 12.4% | 13.3% |
| Net Margin | 8.7% | 7.6% | 8.2% | 8.3% |
| FCF Margin | 1.3% | 4.8% | 3.1% | 6.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.80 | $1.04 | +30.0% | ||
| Q1'26 | $0.78 | $0.72 | -7.7% | ||
| Q4'25 | $0.79 | $0.96 | +22.3% | ||
| Q3'25 | $0.88 | $0.94 | +6.8% | ||
| Q2'25 | $0.82 | $0.86 | +4.9% | ||
| Q1'25 | $0.64 | $0.65 | +1.6% | ||
| Q4'24 | $0.80 | $0.80 | +0.0% | ||
| Q3'24 | $0.82 | $0.77 | -6.1% |
Total return is +25.2% (1Y), outperforming the benchmark by +4.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +30.3% | +22.9% | — |
| 1Y | +25.2% | +4.4% | +1.7% |
| 3YCAGR | +21.2% | +1.8% | +7.0% |
| 5YCAGR | +8.1% | -3.6% | +9.3% |
| 10YCAGR | +6.9% | -7.3% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Sensient Technologies Corporation (SXT) valuation, health, and returns.
Sensient Technologies Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -56.1% downside from DCF intrinsic value of $52.78)
Sensient Technologies Corporation has multiple valuation anchors: DCF Intrinsic Value: $52.78 | Peer Relative Fair Value: $70.29 | Wall Street Analyst Target: $143.00 (implying +19.0% upside). A convergence of these signals offers higher conviction.
Sensient Technologies Corporation displays fair financial health with a composite quality score of 51/100, supported by a Altman Z-Score of 5.1 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.6%.
Sensient Technologies Corporation pays a 1.4% dividend yield, covered by a 52% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Sensient Technologies Corporation's current growth trajectory is Stable. The company achieved +3.5% 1Y revenue growth and +7.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.9%.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +19.0% change from current levels.
Investment risks for Sensient Technologies Corporation include: -31.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.74x.
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.