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Sensata (ST)
NYSE:ST

Sensata (ST) AI Stock Analysis

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ST

Sensata

(NYSE:ST)

Rating:59Neutral
Price Target:
$33.00
▲(4.56%Upside)
Sensata Technologies demonstrates strong operational performance and strategic market wins, as evidenced by its earnings call results. However, financial risks related to net income volatility and valuation concerns limit the stock's overall appeal. Despite these challenges, the company maintains a solid financial footing with positive technical analysis indicators.
Positive Factors
Financial Performance
Sensata Technologies reported a solid F1Q, beating guidance on both revenues and EPS and guided F2Q above current estimates.
Operational Improvements
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.
Product Innovation
Sensata Technologies launched the A2L leak protection sensor, with revenue expected to grow significantly.
Negative Factors
Macro Environment Challenges
The turnaround that ST is undertaking will become more difficult in an increasingly challenging macro environment.
Market Competition
Large multinationals, where ST has strong share, have consistently lost share to local competitors in China.
Revenue Guidance
The F1Q25 revenue and EPS guidance were below BofA and Street estimates.

Sensata (ST) vs. SPDR S&P 500 ETF (SPY)

Sensata Business Overview & Revenue Model

Company DescriptionSensata 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 MoneySensata 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 41.14%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance exceeding guidance, significant progress in free cash flow conversion, and strategic wins in key markets like Japan and China. However, challenges remain with revenue declines in the performance sensing segment, and potential risks from tariffs and regulatory shifts affecting customer demand.
Q1-2025 Updates
Positive Updates
Exceeding Guidance
Revenue, adjusted operating income, and adjusted earnings per share all exceeded the high end of guidance for Q1 2025.
Strong Free Cash Flow Conversion
Free cash flow conversion improved by 26 percentage points year-over-year to 74% in Q1 2025.
Sensing Solutions Growth
Sensing solutions segment delivered $261 million of revenue in Q1 2025, up 3% year-over-year after adjusting for divestments, marking the first period of year-over-year growth since Q2 2023.
Significant Wins in Japan and China
Secured significant wins in Japan with Mazda and other Japanese OEMs, as well as contractor and TPMS business awards with local EV OEMs in China.
Successful Tariff Mitigation
Mitigated more than 95% of gross tariff exposure in auto and HVR business, with 80% of Mexico-sourced revenue now USMCA qualified.
Negative Updates
Revenue Decline in Performance Sensing
Performance sensing segment reported revenue of $650 million in Q1 2025, a decrease of about 9% year-over-year due to mix issues in China and volatility in European OEM production.
Impact of Tariffs and Regulatory Shifts
HVOR orders slowed more than anticipated in Q1 2025 due to tariffs and regulatory shifts impacting customer demand.
Ransomware Incident
A ransomware incident in early April temporarily impacted operations, though normal business operations have resumed.
Company Guidance
During Sensata Technologies' First Quarter 2025 Earnings Call, the company reported strong performance, with revenue, adjusted operating income, and adjusted earnings per share all exceeding the high end of their guidance. Specifically, Sensata achieved a revenue of $911 million, an adjusted operating income of $167 million, and an adjusted earnings per share of $0.78, surpassing expectations by $0.07. The company highlighted its commitment to operational excellence, capital allocation, and revenue growth as strategic imperatives. Sensata's free cash flow conversion improved significantly to 74%, up 26 percentage points year-over-year. Despite macroeconomic challenges, including a volatile tariff environment, Sensata managed to mitigate 95% of its gross tariff exposure. Additionally, the company repurchased approximately 3.5 million shares, returning $100 million to shareholders, and maintained its quarterly dividend. Looking forward, Sensata anticipates a revenue range of $910 million to $940 million for the second quarter of 2025, with a focus on expanding margins and continuing operational improvements.

Sensata Financial Statement Overview

Summary
Sensata's financials depict stable revenue streams and operational efficiency with strong cash flows. However, net income volatility and rising liabilities pose potential risks. The company's financial structure is sound, but profitability improvements are needed.
Income Statement
65
Positive
The income statement shows stable revenue with slight fluctuations over the years. The TTM revenue indicates a minor decrease compared to the previous annual report. Gross profit margin in TTM (26.4%) is consistent with past performance, while net profit margin (3.2%) reflects a dip due to lower net income. EBIT and EBITDA margins are stable, showcasing operational efficiency. However, the net income volatility raises concerns about profitability stability.
Balance Sheet
70
Positive
The balance sheet displays moderate financial health with a debt-to-equity ratio of 1.12, indicating a balanced use of debt and equity. ROE is modest at 4.3% in TTM, highlighting potential for improvement in shareholder returns. The equity ratio stands at 39.7%, suggesting a solid equity base. The overall leverage is manageable, but increasing liabilities warrant careful monitoring.
Cash Flow
75
Positive
Cash flow analysis reveals strong operating cash flow relative to net income, indicating effective cash conversion. Free cash flow growth is positive, although at a slower pace. The operating cash flow to net income ratio (4.51 in TTM) underscores efficient operations. However, free cash flow to net income ratio suggests fluctuations in cash availability, demanding attention for future strategic initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.84B3.93B4.05B4.03B3.82B3.05B
Gross Profit1.01B989.00M1.25B1.32B1.28B926.53M
EBITDA437.96M456.83M506.99M856.49M852.30M592.63M
Net Income122.38M128.48M-3.91M310.69M363.58M164.29M
Balance Sheet
Total Assets7.18B7.14B7.68B8.76B8.61B7.84B
Cash, Cash Equivalents and Short-Term Investments588.14M593.67M508.10M1.23B1.71B1.86B
Total Debt3.20B3.21B3.41B4.24B4.25B4.00B
Total Liabilities4.33B4.25B4.68B5.65B5.52B5.14B
Stockholders Equity2.85B2.89B3.00B3.11B3.09B2.71B
Cash Flow
Free Cash Flow414.61M392.99M272.07M310.53M409.75M453.06M
Operating Cash Flow551.63M551.55M456.68M460.59M554.15M559.77M
Investing Cash Flow16.76M-19.16M-165.00M-590.57M-882.09M-182.09M
Financing Cash Flow-457.35M-442.80M-1.02B-353.46M174.92M710.18M

Sensata Technical Analysis

Technical Analysis Sentiment
Positive
Last Price31.56
Price Trends
50DMA
26.52
Positive
100DMA
25.90
Positive
200DMA
28.54
Positive
Market Momentum
MACD
1.44
Negative
RSI
70.24
Negative
STOCH
90.06
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 31.56 is above the 20-day moving average (MA) of 29.24, above the 50-day MA of 26.52, and above the 200-day MA of 28.54, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 90.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.87B28.0816.73%14.93%12.89%
78
Outperform
$3.87B28.0816.73%14.93%12.89%
73
Outperform
$5.42B23.4411.03%-1.50%1.84%
73
Outperform
$5.42B23.4411.03%-1.50%1.84%
71
Outperform
$7.01B31.169.50%0.84%-1.14%
71
Outperform
$7.01B31.169.50%0.84%-1.14%
68
Neutral
$848.20M-0.34%-4.76%97.93%
68
Neutral
$848.20M-0.34%-4.76%97.93%
62
Neutral
$5.72B53.724.39%1.18%-3.43%-50.48%
62
Neutral
$5.72B53.724.39%1.18%-3.43%-50.48%
STST
59
Neutral
$4.71B39.354.20%1.52%-5.61%
58
Neutral
$931.08M14.69-15.89%9.76%10.79%-36.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ST
Sensata
32.07
-6.58
-17.02%
FARO
Faro Technologies
43.89
27.34
165.20%
FARO
Faro Technologies
43.89
27.34
165.20%
LFUS
Littelfuse
235.58
-18.86
-7.41%
LFUS
Littelfuse
235.58
-18.86
-7.41%
MKSI
MKS
104.53
-36.62
-25.94%
MKSI
MKS
104.53
-36.62
-25.94%
OSIS
OSI Systems
233.83
94.71
68.08%
OSIS
OSI Systems
233.83
94.71
68.08%
SANM
Sanmina-Sci
102.23
34.54
51.03%

Sensata Corporate Events

Executive/Board ChangesShareholder MeetingsStock Buyback
Sensata Approves Key Resolutions at Annual Meeting
Neutral
Jun 11, 2025

On June 10, 2025, Sensata Technologies held its Annual General Meeting of Shareholders, where 93.42% of the total shares entitled to vote were represented. Key resolutions approved included the election of directors, executive and director compensation, the appointment of Deloitte & Touche LLP as auditors, and authorizations related to equity securities issuance and share repurchase. These approvals are set to impact the company’s governance and financial strategies, reinforcing its operational and market positioning.

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.

Executive/Board Changes
Sensata Announces CFO Resignation and Interim Appointment
Neutral
May 15, 2025

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.

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.Date of analysis: Jun 27, 2025