Sensata (ST) AI Stock Analysis

• Market Cap: $5.34B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -8.07%
• EPS Growth: 63.50%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.88
• Shares Outstanding: 145,678,740
• 10 Day Avg. Volume: 2,574,711
• 30 Day Avg. Volume: 1,900,169
• PEG Ratio: -2.07
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 9.95
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 7.32
• 1Y Price Target: $38.63
• Price Target Upside: 4.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $42.00 ▲(13.45% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is driven primarily by solid cash generation and a stronger balance sheet, supported by positive technical momentum and a constructive earnings outlook with margin-floor discipline. Offsetting factors are weak/volatile profitability (very thin TTM net margin) and a less-informative negative P/E, which temper the overall rating.

Positive Factors

Strong free cash flow generation

Sustained, large free cash flow provides durable financial flexibility: funds buybacks/dividends, debt paydown, and capex for growth initiatives. A high FCF conversion (97% in 2025) reduces reliance on external financing and supports multi-year capital allocation priorities.

Very conservative balance sheet / low leverage

Extremely low net leverage and a sizeable equity base increase resilience through cycles and give room to invest or pursue M&A without stressing liquidity. The shift from prior higher leverage materially improves solvency and long-term optionality.

Higher-margin product wins and portfolio diversification

Meaningful new content (A2L, data center initiative) and a reorganization into three segments diversify revenue and increase higher-margin exposure. Durable structural wins and segment margin expansion improve long-run earnings mix and reduce single-market dependency.

Negative Factors

Thin and volatile profitability

Very low TTM net margin and episodic losses indicate earnings are fragile and sensitive to volume, mix, and one-time items. Compressed EBITDA margins versus 2021–22 reduce ability to absorb cost shocks and limit sustainable return generation for shareholders.

End-market cyclicality exposure

Significant exposure to cyclic automotive and heavy-vehicle markets creates revenue and margin volatility across multi-year OEM cycles. Prolonged weakness in truck and industrial production can materially depress shipments despite product diversification.

Tariff and commodity cost pressures

Persistent tariffs and precious-metal input cost volatility can erode margins if pass-through is limited or delayed. Even with hedges and redesign efforts, these structural cost pressures risk recurring margin drag and complicate multi-quarter margin visibility.

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

Mixed fundamentals: revenue rebounded strongly (+24.3% TTM) and free cash flow is a clear strength (~$490M TTM) with consistently positive FCF. However, profitability is pressured and volatile (TTM net margin ~0.8%, down materially from 2021–2022; loss in 2023), which limits confidence in earnings durability despite a de-risked balance sheet (very low debt-to-equity ~0.01).

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+24.3%), but profitability remains pressured: net margin is very thin (~0.8%) versus healthier levels in 2021–2022 (~7.6%–9.5%). Operating profitability has also compressed materially (EBITDA margin ~16.2% TTM vs ~21%–22% in 2021–2022). Results show volatility with a loss in 2023 and a sharp step-down in earnings again in TTM, which limits confidence in earnings durability despite the top-line recovery.

Balance Sheet

Leverage looks very conservative in TTM with extremely low debt relative to equity (debt-to-equity ~0.01), a major improvement from the more leveraged 2020–2024 period (roughly ~1.1–1.5). Equity remains sizable (~$2.8B TTM) against a ~$6.8B asset base, supporting balance-sheet resilience. The main weakness is that returns on equity are currently low (~1.1% TTM), reflecting muted profitability even with a stronger capital structure.

Cash Flow

Cash generation is a key strength: TTM operating cash flow is solid (~$622M) and free cash flow is strong (~$490M) with a sharp TTM increase in free cash flow versus the prior year. Free cash flow remains consistently positive across the multi-year period, providing flexibility. The watch-out is that cash conversion is not perfect—cash flow is not fully tracking accounting earnings in the same direction in TTM, suggesting working-capital or timing effects—but overall cash flow quality and scale are supportive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.70B	3.94B	4.07B	4.08B	3.81B
Gross Profit	1.00B	989.00M	1.08B	1.20B	1.11B
EBITDA	770.50M	456.83M	506.99M	856.49M	852.30M
Net Income	31.30M	128.48M	-3.91M	310.69M	363.58M
Balance Sheet
Total Assets	6.75B	7.14B	7.68B	8.76B	8.61B
Cash, Cash Equivalents and Short-Term Investments	573.00M	593.67M	508.10M	1.23B	1.71B
Total Debt	2.85B	3.26B	3.44B	4.28B	4.30B
Total Liabilities	3.97B	4.25B	4.68B	5.65B	5.52B
Stockholders Equity	2.79B	2.89B	3.00B	3.11B	3.09B
Cash Flow
Free Cash Flow	490.30M	392.99M	272.07M	310.53M	409.75M
Operating Cash Flow	621.50M	551.55M	456.68M	460.59M	554.15M
Investing Cash Flow	-95.80M	-98.55M	-165.00M	-590.57M	-882.09M
Financing Cash Flow	-550.60M	-363.41M	-1.02B	-353.46M	174.92M

Sensata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 37.02 is above the 20-day moving average (MA) of 35.94, above the 50-day MA of 35.03, and above the 200-day MA of 31.39, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 55.14 is Neutral, 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
ESE	80 Outperform	$6.99B	53.07	9.25%	0.16%	13.13%	24.02%
SANM	71 Outperform	$8.07B	35.43	9.74%	―	7.40%	13.79%
ITRI	69 Neutral	$4.48B	15.24	19.38%	―	0.14%	14.12%
ST	68 Neutral	$5.34B	-189.02	1.10%	1.43%	-8.07%	63.50%
OSIS	68 Neutral	$4.51B	32.44	18.33%	―	9.37%	15.70%
TTMI	68 Neutral	$9.72B	59.73	10.67%	―	17.88%	91.41%
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.

The most recent analyst rating on (ST) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Sensata stock, see the ST Stock Forecast page.