Sensata (ST) AI Stock Analysis

• Market Cap: $5.24B
• Dividend Yield: 1.38%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -8.07%
• EPS Growth: 63.50%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.89
• Shares Outstanding: 145,678,740
• 10 Day Avg. Volume: 1,503,078
• 30 Day Avg. Volume: 1,353,330
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 10.49
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 6.92
• Enterprise Value/Ebitda: 10.33
• 1Y Price Target: $38.78
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.4
• Revenue Forecast (FY): $3.70B

• Rating: 63 Neutral
• Price Target: $36.00 ▲(3.51% Upside)

Sensata's overall stock score reflects a balance of strong technical momentum and positive earnings call insights against financial and valuation challenges. The company's ability to manage cash flow and reduce debt is promising, but revenue declines and profitability issues need addressing to improve the stock's attractiveness.

Positive Factors

Cash Flow Management

Strong cash flow management indicates effective financial operations, providing Sensata with the flexibility to invest in growth and reduce debt.

Debt Reduction Initiative

Reducing long-term debt enhances financial stability and lowers interest expenses, improving Sensata's balance sheet health.

Market Outgrowth

Outgrowing the market indicates strong competitive positioning and product demand, supporting long-term revenue growth.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining sales momentum, potentially impacting future profitability and market share.

Goodwill Impairment

Goodwill impairment reflects potential overvaluation of past acquisitions, affecting financial statements and investor perception.

Profitability Concerns

Negative profitability indicates operational inefficiencies and cost management issues, which may hinder long-term financial health.

Sensata Business Overview & Revenue Model

Company Description

Sensata 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 Money

Sensata generates revenue through the sale of its sensor and electrical protection products to customers in multiple industries. The company's revenue model is primarily based on direct sales, with significant contributions from long-term contracts and partnerships with major original equipment manufacturers (OEMs) in the automotive and industrial sectors. Key revenue streams include the automotive segment, which focuses on sensors that improve vehicle safety and efficiency, and the industrial segment, which supplies solutions for automation and control systems. Sensata also benefits from recurring revenue through aftermarket sales and services, as well as collaborations with strategic partners that enhance its market reach and product offerings.

Sensata Financial Statement Overview

Summary

Sensata's financial performance is mixed. Strong cash flow management and low leverage are positives, but declining revenue and negative profitability metrics are significant concerns. The company faces challenges in reversing revenue declines and improving operational efficiency.

Income Statement

Sensata's income statement shows a declining revenue trend with a negative revenue growth rate of -1.48% TTM. The gross profit margin has decreased to 28.16% TTM from 33.46% in 2021, indicating pressure on cost management. The net profit margin is negative at -0.71% TTM, reflecting a net loss, which is a significant concern. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.008 TTM, indicating low leverage. However, the return on equity is negative at -0.92% TTM, due to the net loss, which is a concern for profitability. The equity ratio is stable, suggesting a solid asset base.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 7.77% TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 0.73, suggesting good cash conversion. The free cash flow to net income ratio is also robust at 0.81, highlighting effective cash management despite the net loss.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	3.94B	4.07B	4.08B	3.81B	3.03B
Gross Profit	991.27M	989.00M	1.08B	1.20B	1.11B	801.30M
EBITDA	664.30M	456.83M	506.99M	856.49M	852.30M	592.63M
Net Income	-26.15M	128.48M	-3.91M	310.69M	363.58M	164.29M
Balance Sheet
Total Assets	7.07B	7.14B	7.68B	8.76B	8.61B	7.84B
Cash, Cash Equivalents and Short-Term Investments	791.35M	593.67M	508.10M	1.23B	1.71B	1.86B
Total Debt	3.20B	3.26B	3.44B	4.28B	4.30B	4.05B
Total Liabilities	4.35B	4.25B	4.68B	5.65B	5.52B	5.14B
Stockholders Equity	2.72B	2.89B	3.00B	3.11B	3.09B	2.71B
Cash Flow
Free Cash Flow	469.20M	392.99M	272.07M	310.53M	409.75M	453.06M
Operating Cash Flow	579.06M	551.55M	456.68M	460.59M	554.15M	559.77M
Investing Cash Flow	-76.72M	-98.55M	-165.00M	-590.57M	-882.09M	-182.09M
Financing Cash Flow	-215.09M	-363.41M	-1.02B	-353.46M	174.92M	710.18M

Sensata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ST, the sentiment is Positive. The current price of 34.78 is above the 20-day moving average (MA) of 32.05, above the 50-day MA of 31.59, and above the 200-day MA of 28.75, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ST.

Sensata Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$9.23B	39.64	10.81%	―	7.40%	13.79%
TTMI	77 Outperform	$8.03B	63.95	8.12%	―	17.88%	91.41%
OSIS	76 Outperform	$4.51B	29.41	17.58%	―	9.37%	15.70%
ITRI	70 Outperform	$4.50B	17.30	16.93%	―	0.14%	14.12%
ESE	70 Neutral	$5.24B	41.46	8.93%	0.16%	13.13%	24.02%
ST	63 Neutral	$5.24B	―	-0.92%	1.38%	-8.07%	63.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sensata Corporate Events

Sensata Announces CTO Departure Agreement

On December 8, 2025, Sensata Technologies announced a Separation and Release of Claims Agreement with George Verras, its Executive Vice President and Chief Technology Officer, effective December 31, 2025. The agreement, which is amicable and not due to any disagreements, outlines severance benefits including a year’s salary, bonus payments, and health benefits, reflecting the company’s structured approach to executive transitions.

Sensata Announces Early Tender Results for Notes

On November 11, 2025, Sensata Technologies Holding plc and its subsidiaries announced the early tender results for their cash tender offers, aiming to purchase up to $350 million in senior notes. The company removed the cap on the purchase of 4.000% Senior Notes due 2029, resulting in a proration rate of approximately 38.2349% for these notes. The tender offers, which began on October 28, 2025, are set to expire on November 26, 2025, but due to the high volume of tenders, no further notes are expected to be accepted after the early deadline.

Sensata Technologies Reports Q3 Results Amid Revenue Decline

On October 28, 2025, Sensata Technologies reported its third-quarter financial results, revealing a decrease in revenue to $932 million, down 5.2% from the previous year, largely due to divestitures and product lifecycle management actions. The company recorded $259 million in charges related to goodwill impairment and excess capacity in electrification products, driven by changes in clean energy policies and emissions regulations. Despite these challenges, Sensata maintained strong cash flow and returned $17.5 million to shareholders in dividends. Additionally, Nicolas Bardot was appointed as Executive Vice President and Chief Operations Officer, effective November 1, 2025, bringing over 20 years of operations leadership experience to the company. Sensata also announced a cash tender offer for up to $350 million of its outstanding senior notes, aiming to optimize its financial structure.

Sensata Technologies Reports Q3 Results Amid Revenue Decline

On October 28, 2025, Sensata Technologies reported its third-quarter financial results, revealing a decrease in revenue to $932 million, down 5.2% from the previous year, largely due to divestitures and product lifecycle management actions. The company recorded $259 million in charges related to goodwill impairment and excess capacity in electrification products, driven by changes in clean energy policies and emissions regulations. Despite these challenges, Sensata maintained strong cash flow and returned $17.5 million to shareholders in dividends. Additionally, Nicolas Bardot was appointed as Executive Vice President and Chief Operations Officer, effective November 1, 2025, bringing over 20 years of operations leadership experience to the company. Sensata also announced a cash tender offer for up to $350 million of its outstanding senior notes, aiming to optimize its financial structure.

Sensata Amends Credit Agreement, Extends Maturity

On September 24, 2025, Sensata Technologies, Inc. and its subsidiaries amended their Credit Agreement, reducing the revolving credit facility from $750 million to $650 million and extending its maturity to September 24, 2030. These changes are expected to provide Sensata with increased operational flexibility and permissions, potentially impacting its financial strategy and stakeholder interests.