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Sensata (ST)
NYSE:ST
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Sensata
(NYSE:ST)
62Neutral
Positive Factors
Internal Operations
Internal operations appear to be on much improved footing as non-core businesses have been exited, non-profitable products exited, and internal costs re-evaluated.
Leadership
The new CEO, Stephan von Schuckmann, has extensive experience in the automotives and technology sectors, which is expected to bring valuable leadership to the company.
Product Launch
Sensata Technologies launched the A2L leak protection sensor, with revenue expected to grow significantly.
Negative Factors
Automotive Market
The weaker automotive end market into 2025 could pose challenges to ST's growth and margin improvement.
Price Objective
The price objective was lowered to $33 from $38 due to weak revenue guidance for FY25.
Revenue Guidance
The F1Q25 revenue and EPS guidance were below BofA and Street estimates.
Sensata (ST) vs. S&P 500 (SPY)
Market Cap
$3.63B
Dividend Yield1.98%
Average Volume (3M)1.75M
Price to Earnings (P/E)28.4
Beta (1Y)0.99
Revenue Growth-3.34%
EPS GrowthN/A
CountryUS
Employees19,000
SectorTechnology
Sector Strength42
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.85
Shares Outstanding149,551,960
10 Day Avg. Volume1,669,186
30 Day Avg. Volume1,751,663
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.03
Price to Cash Flow (P/CF)6.00
P/FCF Ratio6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.78Price Target Upside45.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Sensata Business Overview & Revenue Model
Company DescriptionSensata Technologies Holding plc develops, manufactures, and sells sensors, sensor-based solutions, controls, and other products in the Americas, Europe, Asia, and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment develops and manufactures sensors, high-voltage contactors, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain (engine/transmission), and exhaust management. This segment serves customers in the automotive, and heavy vehicle and off-road industries. The Sensing Solutions segment develops and manufactures application-specific sensor and electrical protection products primarily serving the industrial and aerospace markets. Its products include pressure and position sensors, motor and compressor protectors, high-voltage contactors, solid state relays, bimetal electromechanical controls, power inverters, charge controllers, battery management systems, operator controls, and Internet of Things solutions. The company was founded in 1916 and is headquartered in Attleboro, Massachusetts.
How the Company Makes MoneySensata Technologies makes money by designing and producing a wide array of sensors and electrical protection components that cater to industries such as automotive, industrial, and aerospace. The company's revenue model is primarily based on the sale of these products to original equipment manufacturers (OEMs) and suppliers in these industries. A significant portion of its income is derived from long-term supply agreements and contracts with key clients. Sensata also invests in research and development to innovate and enhance its product offerings, ensuring they meet evolving customer needs and regulatory standards. Additionally, strategic acquisitions and partnerships help Sensata expand its market reach and integrate cutting-edge technologies into its portfolio, further driving revenue growth.
Sensata Financial Statement Overview
Summary
Sensata's financial statements present a mixed picture with strong operational margins and a balanced capital structure. However, challenges in revenue growth and cash flow performance, alongside a high level of debt, are concerning.Income Statement
Sensata's income statement shows mixed results. The gross profit margin for 2024 was relatively strong at 29.4%, but the net profit margin was much weaker at 3.3%. Revenue fell by 3% from the previous year, reflecting a potential challenge in sales growth. However, the company maintained a positive EBITDA margin of 3.8%, indicating operational resilience.67
Positive
Balance Sheet
The balance sheet presents a stable financial position with a debt-to-equity ratio of 0.81, indicating balanced leverage. The return on equity was modest at 4.4%, and the equity ratio stood at 40.5%, signifying a solid capital structure. However, the high level of debt remains a concern, which may impact future financial flexibility.72
Positive
Cash Flow
Cash flow performance is moderate with a decline in free cash flow by 11.2% year-over-year. The operating cash flow to net income ratio was notably high, reflecting efficient cash generation relative to net earnings. However, free cash flow to net income was low, suggesting limited cash available after capital expenditures.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.93B | 4.05B | 4.03B | 3.82B | 3.05B | Gross Profit |
| 1.16B | 1.25B | 1.32B | 1.28B | 926.53M | EBIT |
| 149.28M | 553.51M | 508.82M | 633.24M | 337.74M | EBITDA |
| 456.83M | 506.99M | 856.49M | 852.30M | 592.63M | Net Income Common Stockholders |
| 128.48M | -3.91M | 310.69M | 363.58M | 164.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 593.67M | 508.10M | 1.23B | 1.71B | 1.86B | Total Assets |
| 7.14B | 7.68B | 8.76B | 8.61B | 7.84B | Total Debt |
| 3.21B | 3.41B | 4.24B | 4.25B | 4.00B | Net Debt |
| 2.62B | 2.90B | 3.01B | 2.54B | 2.14B | Total Liabilities |
| 4.25B | 4.68B | 5.65B | 5.52B | 5.14B | Stockholders Equity |
| 2.89B | 3.00B | 3.11B | 3.09B | 2.71B |
| Cash Flow | Free Cash Flow | |||
| 392.99M | 272.07M | 310.53M | 409.75M | 453.06M | Operating Cash Flow |
| 551.55M | 456.68M | 460.59M | 554.15M | 559.77M | Investing Cash Flow |
| -19.16M | -165.00M | -590.57M | -882.09M | -182.09M | Financing Cash Flow |
| -442.80M | -1.02B | -353.46M | 174.92M | 710.18M |
Sensata Technical Analysis
Negative
24.61
Price Trends
27.48
Negative
28.69
Negative
32.53
Negative
Market Momentum
-0.76
Positive
29.92
Positive
11.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ST, the sentiment is Negative. The current price of 24.61 is below the 20-day moving average (MA) of 26.92, below the 50-day MA of 27.48, and below the 200-day MA of 32.53, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 29.92 is Positive, neither overbought nor oversold. The STOCH value of 11.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ST.
Sensata Risk Analysis
Sensata disclosed 31 risk factors in its most recent earnings report. Sensata reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sensata Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $79.48B | 34.19 | 26.73% | 0.92% | 21.25% | 24.59% | |
73 Outperform | $1.74B | 12.99 | 13.99% | ― | -5.01% | 24.50% | |
71 Outperform | $41.98B | 22.46 | 15.02% | 1.85% | -1.09% | -40.55% | |
67 Neutral | $8.33B | 11.72 | 50.69% | 1.05% | 6.26% | 12.62% | |
67 Neutral | $9.60B | 675.02 | 1.81% | ― | 8.66% | ― | |
62 Neutral | $3.63B | 28.41 | 4.36% | 1.98% | -3.34% | ― | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% |
* Technology Sector Average
Performance Comparison
ST
Sensata
24.61
-11.62
-32.07%
ALSN
Allison Transmission Holdings
98.91
17.62
21.68%
APH
Amphenol
67.90
10.73
18.77%
ROCK
Gibraltar Industries
59.09
-19.76
-25.06%
TEL
TE Connectivity
142.29
-0.92
-0.64%
ALTR
Altair Engineering
111.85
28.18
33.68%
Sensata Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -4.17% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were strong operational improvements such as exceeding revenue guidance, improving free cash flow conversion, and reducing net leverage, the company also faced challenges like overall revenue decline, particularly in the Sensing Solutions segment, and ongoing difficulties in the China market.Highlights
Strong Fourth Quarter Revenue
Fourth quarter revenue of $908 million exceeded the top end of the company's guidance range of $870 million to $900 million.
Improved Free Cash Flow Conversion
Full-year free cash flow conversion improved by 27 percentage points to 76% of adjusted net income, totaling $393 million for the year.
Net Leverage Reduction
Net leverage was reduced to under 3x for the first time in three years, aided by improved free cash flow generation.
Debt Maturity Profile Improvement
Retired $700 million of bonds a year early and improved the maturity profile with no tranche due until 2029.
Aerospace Business Growth
Aerospace business continues to see modest growth with operating margins well above the portfolio average.
Performance Sensing Outperformance
Performance Sensing reported revenue of $2.74 billion, roughly flat year-over-year, representing approximately 350 basis points of outgrowth against automotive and heavy vehicle end markets.
Lowlights
Overall Revenue Decline
Full-year 2024 revenue was $3.93 billion, representing approximately a 3% decrease from $4.05 billion in 2023.
Sensing Solutions Revenue Decline
Sensing Solutions reported revenue of $1.06 billion, a decrease of 8% year-over-year due to weak industrial end market demand.
Adjusted Earnings Per Share Decrease
Adjusted earnings per share for the full-year was $3.44, down from $3.61 in 2023.
Challenges in China Market
Continued challenges in the China market, especially with local versus multinational players, impacting growth.
Company Guidance
During Sensata Technologies' fourth quarter and full-year 2024 earnings call, the company provided guidance for the first quarter of 2025 and a high-level outlook for the full year. Revenue for Q1 2025 is expected to be between $870 million and $890 million, with a sequential decline from Q4 2024 due to seasonality and foreign currency effects. The full-year revenue for 2025 is projected to be flat compared to 2024 at approximately $3.6 billion. Adjusted operating margins for Q1 2025 are anticipated to be between 18.2% and 18.4%, with expectations for margins to recover to 19% or higher in Q2 2025. The company aims for full-year 2025 adjusted operating margins to be similar to or better than 2024's 19%. The guidance does not account for potential impacts from newly announced tariffs on imports into the U.S. Sensata also reported improved free cash flow conversion, achieving 76% for 2024, and aims to maintain or improve this level in 2025.Sensata Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Sensata Appoints Stephan von Schuckmann as New CEO
Positive
Dec 17, 2024
Sensata Technologies has appointed Stephan von Schuckmann as its new CEO, effective January 1, 2025. With extensive experience in automotive and industrial sectors, particularly in electric mobility, von Schuckmann brings a strong leadership background to the company. This strategic appointment aims to strengthen Sensata’s position in the industry, leveraging von Schuckmann’s expertise to drive growth and innovation. Additionally, interim CEO Martha Sullivan will continue as a non-independent director and act as a special advisor to von Schuckmann to ensure a smooth transition. The company recognizes the increased responsibilities of its executives involved in the recruitment process with a cash bonus, highlighting the importance of this leadership change.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.