Sensata (ST) AI Stock Analysis

• Market Cap: $3.76B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.30
• Revenue Growth: -5.61%
• EPS Growth: N/A
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.78
• Shares Outstanding: 146,290,190
• 10 Day Avg. Volume: 1,424,674
• 30 Day Avg. Volume: 1,654,136
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.30
• Price Target Upside: 6.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $29.00 ▲(9.02%Upside)

Sensata's overall stock score reflects strong earnings performance and technical momentum, counterbalanced by valuation concerns and net income volatility. Strategic wins and operational improvements support a favorable outlook, but attention to profitability and macroeconomic challenges is needed.

Positive Factors

Financial Performance

Sensata Technologies reported a solid F1Q, beating guidance on both revenues and EPS and guided F2Q above current estimates.

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 Development

Sensata Technologies launched the A2L leak protection sensor, with revenue expected to grow significantly.

Negative Factors

Financial Guidance

The F1Q25 revenue and EPS guidance were below BofA and Street estimates.

Market Conditions

A weaker automotive market into 2025 could pose challenges to the company's growth and margin expansion efforts.

Operational Challenges

The turnaround that ST is undertaking will become more difficult in an increasingly challenging macro environment.

Sensata Business Overview & Revenue Model

Company Description

Sensata Technologies Holding plc is a global industrial technology company that develops, manufactures, and sells sensors and sensor-rich solutions that are essential in today's complex automotive, industrial, aerospace, and other sectors. The company's core products include sensors, controllers, and software that allow for safer, cleaner, and more efficient systems. Sensata's solutions are integral to numerous applications, providing critical data that helps improve productivity, efficiency, and safety.

How the Company Makes Money

Sensata Technologies generates revenue primarily through the sale of its sensor products and related technologies to various industries, including automotive, industrial, heavy vehicle, off-road, and aerospace. The company earns money by designing and manufacturing high-performance, reliable sensors that are integrated into customer products, which are then sold across the globe. Key revenue streams include sales of pressure sensors, temperature sensors, position sensors, and other sensor-rich solutions. Additionally, Sensata forms strategic partnerships and long-term contracts with leading manufacturers and suppliers in its target markets, which helps ensure consistent demand and recurring revenue. The company's focus on innovation and expanding its product portfolio, combined with its global manufacturing footprint, also contributes significantly to its earnings.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 26.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 26.6 is above the 20-day moving average (MA) of 26.07, above the 50-day MA of 23.29, and below the 200-day MA of 29.27, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 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
SANM	79 Outperform	$4.71B	20.35	11.03%	―	-1.50%	1.84%
OSIS	75 Outperform	$3.71B	27.20	16.73%	―	14.93%	12.89%
ST	74 Outperform	$3.76B	31.39	4.20%	1.81%	-5.61%	―
MKSI	74 Outperform	$5.78B	25.67	9.50%	1.02%	-1.14%	―
LFUS	72 Outperform	$5.25B	49.27	4.39%	1.32%	-3.43%	-50.48%
FARO	66 Neutral	$816.34M	―	-0.34%	―	-4.76%	97.93%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%

Sensata Corporate Events

Sensata Announces CFO Resignation and Interim Appointment

On May 13, 2025, Sensata Technologies announced the resignation of Brian Roberts, their Executive Vice President and Chief Financial Officer, effective May 15, 2025. His departure is amicable and not due to any disagreements with the company. Andrew Lynch, currently Vice President Finance of Sensata’s Performance Sensing segment, will take over as Interim CFO starting May 16, 2025. Lynch, who has been with the company for nearly 16 years, will assume the role of principal financial officer without any changes to his compensation or any special arrangements.

The most recent analyst rating on (ST) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Sensata stock, see the ST Stock Forecast page.