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Sensata
(NYSE:ST)
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Rating:61Neutral
Price Target:
$49.00
▲(7.20% Upside)
Action:Reiterated
Date:07/30/26
The score is led by solid and improving cash generation plus supportive earnings-call signals around margin defense and deleveraging. This is tempered by weak/volatile net profitability and meaningful leverage, while the stock’s very high P/E and only modest dividend yield materially pressure the overall rating; technicals are mixed with modest long-term support but weaker intermediate trend.
Positive Factors
Strong free cash flow
Sensata's materially higher free cash flow over the TTM period, with strong conversion to reported earnings, provides durable capacity to fund modest capex, dividends, buybacks and debt reduction without relying on volatile net income. This supports balance-sheet repair and strategic investments over the next several quarters.
Negative Factors
Meaningful leverage
A balance sheet that has historically relied on sizable debt reduces financial flexibility, increases interest-cost sensitivity and limits the company's ability to absorb shocks or invest aggressively. Even with recent de-leveraging progress, leverage remains a persistent constraint on strategic optionality over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sensata's materially higher free cash flow over the TTM period, with strong conversion to reported earnings, provides durable capacity to fund modest capex, dividends, buybacks and debt reduction without relying on volatile net income. This supports balance-sheet repair and strategic investments over the next several quarters.
Read all positive factors
Sensata (ST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.74B
Dividend Yield1.04%
Average Volume (3M)1.58M
Price to Earnings (P/E)73.5
Beta (1Y)1.50
Revenue Growth-3.37%
EPS Growth-59.55%
CountryUS
Employees18,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.63
Shares Outstanding145,535,860
10 Day Avg. Volume1,448,725
30 Day Avg. Volume1,580,151
Financial Highlights & Ratios
PEG Ratio-2.11
Price to Book (P/B)1.75
Price to Sales (P/S)1.32
P/FCF Ratio9.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$54.63Price Target Upside19.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.7
Revenue Forecast (FY)$3.84B
Sensata Business Overview & Revenue Model
Company Description
Sensata Technologies Holding plc is a global enterprise specializing in the design, production, and distribution of sensing devices, integrated sensor solutions, control systems, and associated technologies. Its market reach extends across the Ame...
How the Company Makes Money
Sensata makes money primarily by selling engineered components—especially sensors and electrical protection/control products—to original equipment manufacturers (OEMs) and their tiered suppliers, as well as to industrial and aerospace customers. I...
Sensata Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed multiple operational and financial positives: revenue and organic growth, margin expansion, record Q1 free cash flow and stronger balance-sheet metrics (lower leverage, higher ROIC), plus early customer traction in a strategic data center opportunity. These strengths were balanced against meaningful cost headwinds (precious metals inflation, tariffs), end-market risks (geopolitical uncertainty, China subsidy changes) and near-term softness in HVAC. Management presented concrete mitigation actions, scenario planning and a one-quarter-at-a-time guidance posture, suggesting confidence in defending margin targets while acknowledging uncertainties.Positive Updates
Revenue Growth and Organic Performance
Total Q1 revenue $935M, up $24M or +3% YoY; organic revenue growth +4% YoY after a $34M inorganic headwind from divestitures and a $20M FX tailwind.
Negative Updates
Precious Metal Inflation and Commodity Pressure
Precious metals costs increased roughly 100% YoY for relevant buys in Q1; Sensata has roughly $40M annual precious metals exposure and was ~80% hedge-covered in H1, leaving ongoing exposure and need for structural mitigation (design/negotiation/customer pass-through).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Organic Performance
Total Q1 revenue $935M, up $24M or +3% YoY; organic revenue growth +4% YoY after a $34M inorganic headwind from divestitures and a $20M FX tailwind.
Read all positive updates
Company Guidance
Sensata guided Q2 2026 revenue of $950–$980 million, adjusted operating income of $182–$190 million (adjusted operating margin 19.2%–19.4%), adjusted net income of $131–$139 million and adjusted EPS of $0.89–$0.95; the Q2 view includes roughly $8 million of tariff costs (with pass‑through) and excludes any potential EPA tariff refunds. Management will continue to provide one‑quarter guidance, said consensus back‑half margin expansion of ~30 basis points per quarter is consistent with its view if demand holds, and reiterated preparedness to defend a ~19% annual margin floor if markets deteriorate. For context the company reported Q1 free cash flow of $105 million (83% conversion), net leverage of 2.65x TTM adjusted EBITDA, ROIC of 10.8% (up 70 bps), a CapEx target of ~3.0%–3.5% of revenue, returned $43 million of capital in Q1 (including a $0.12/share Q2 dividend) and repurchased $25 million of stock.Sensata Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.78B | 3.70B | 3.94B | 4.07B | 4.08B | 3.81B |
| Gross Profit | 1.07B | 1.00B | 989.00M | 1.08B | 1.20B | 1.11B |
| EBITDA | 736.52M | 528.80M | 456.83M | 506.99M | 856.49M | 852.30M |
| Net Income | 89.88M | 31.30M | 128.48M | -3.91M | 310.69M | 363.58M |
Balance Sheet | ||||||
| Total Assets | 6.59B | 6.75B | 7.14B | 7.68B | 8.76B | 8.61B |
| Cash, Cash Equivalents and Short-Term Investments | 403.30M | 573.00M | 593.67M | 508.10M | 1.23B | 1.71B |
| Total Debt | 2.44B | 2.92B | 3.26B | 3.44B | 4.28B | 4.30B |
| Total Liabilities | 3.63B | 3.97B | 4.25B | 4.68B | 5.65B | 5.52B |
| Stockholders Equity | 2.96B | 2.79B | 2.89B | 3.00B | 3.11B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 571.36M | 490.30M | 392.99M | 272.07M | 310.53M | 409.75M |
| Operating Cash Flow | 683.86M | 621.50M | 551.55M | 456.68M | 460.59M | 554.15M |
| Investing Cash Flow | -97.75M | -95.80M | -98.55M | -165.00M | -590.57M | -882.09M |
| Financing Cash Flow | -825.42M | -550.60M | -363.41M | -1.02B | -353.46M | 174.92M |
Sensata Technical Analysis
Positive
45.71
Price Trends
47.85
Negative
43.54
Positive
38.54
Positive
Market Momentum
-0.60
Negative
47.79
Neutral
69.48
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 45.71 is above the 20-day moving average (MA) of 45.47, below the 50-day MA of 47.85, and above the 200-day MA of 38.54, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 69.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ST.
Sensata Risk Analysis
Sensata disclosed 32 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.36B | 16.39 | 16.53% | ― | -5.69% | 2.02% | |
78 Outperform | $8.17B | 26.52 | 20.50% | 0.10% | 16.43% | 14.49% | |
63 Neutral | $9.95B | 32.55 | 12.57% | ― | 58.56% | 19.37% | |
62 Neutral | $3.65B | 24.60 | 16.74% | ― | 6.98% | 8.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $6.74B | 73.48 | 3.18% | 1.05% | -3.37% | -59.55% | |
61 Neutral | $11.99B | 61.08 | 11.26% | ― | 23.10% | 146.72% |
* Technology Sector Average
ST
Sensata
46.29
16.55
55.65%
ESE
Esco Technologies
315.29
121.74
62.90%
ITRI
Itron
99.66
-26.09
-20.75%
OSIS
OSI Systems
221.39
-0.30
-0.14%
SANM
Sanmina-Sci
185.56
68.87
59.02%
TTMI
TTM Technologies
115.44
70.61
157.51%
Sensata Corporate Events
Business Operations and StrategyStock BuybackShareholder Meetings
Sensata Shareholders Approve Proposals at 2026 Annual Meeting
Positive
Jun 11, 2026
Sensata Technologies’ Annual General Meeting of Shareholders, held on June 9, 2026, recorded a 96.06% turnout of ordinary shares entitled to vote, underscoring strong investor engagement in the industrial technology group. Shareholders elect...
Business Operations and StrategyPrivate Placements and Financing
Sensata Boosts Debt Tender Offer Amid Strong Demand
Positive
Jun 1, 2026
On June 1, 2026, Sensata and subsidiaries Sensata Technologies B.V. and Sensata Technologies, Inc. reported early tender results for their cash tender offers targeting certain senior notes and raised the maximum total consideration from $350 milli...
Business Operations and StrategyPrivate Placements and Financing
Sensata Launches Tender Offer to Repurchase Senior Notes
Positive
May 15, 2026
On May 15, 2026, Sensata announced that indirect subsidiaries Sensata Technologies B.V. and Sensata Technologies, Inc. launched cash tender offers to repurchase up to $350 million of outstanding senior notes due 2029 and 2030, across three series ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.