Sensata (ST)
NYSE:ST
Top Page
Sensata
(NYSE:ST)
Select Model
Select Model
Rating:68Neutral
Price Target:
$36.00
▲(2.89% Upside)
Action:ReiteratedDate: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
Consistently high free cash flow and record 2025 FCF provide durable financial flexibility to fund R&D, capex, buybacks and debt paydown. Strong cash generation cushions earnings volatility and supports long-term capital allocation and investment in growth initiatives.
Negative Factors
Volatile, thin profitability
Margins have compressed materially versus prior years and earnings have been volatile, including a 2023 loss. Fragile profitability reduces ability to consistently reinvest and deliver returns, increasing sensitivity to cost shocks and making earnings durability uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistently high free cash flow and record 2025 FCF provide durable financial flexibility to fund R&D, capex, buybacks and debt paydown. Strong cash generation cushions earnings volatility and supports long-term capital allocation and investment in growth initiatives.
Read all positive factors
Sensata (ST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.10B
Dividend Yield1.43%
Average Volume (3M)1.70M
Price to Earnings (P/E)155.8
Beta (1Y)1.49
Revenue Growth-8.07%
EPS Growth63.50%
CountryUS
Employees18,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.88
Shares Outstanding145,799,550
10 Day Avg. Volume1,277,612
30 Day Avg. Volume1,701,909
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)1.75
Price to Sales (P/S)1.32
P/FCF Ratio9.95
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit7.68
Enterprise Value/Ebitda10.26
Forecast
1Y Price Target
$40.33Price Target Upside15.26% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)3.63
Revenue Forecast (FY)$3.81B
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 Solut...
How the Company Makes Money
Sensata makes money primarily by selling engineered components and systems—mainly sensors and electrical protection devices—directly to original equipment manufacturers (OEMs) and their suppliers. Revenue is generated on a per-unit basis tied to c...
Sensata Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational progress and financial improvement: record free cash flow, margin recovery meeting the 19% floor, deleveraging, return of revenue growth in H2 2025, and strong segment margin expansion. Management outlined a clear go‑forward structure (three segments), concrete growth initiatives (data centers, A2L, aerospace/defense/UAVs) and prudent capital allocation. Near-term risks include a reported 6% revenue decline for the year due to divestitures, cyclicality in on-road truck and industrial end markets, tariff and precious metals pressures, and one-time restructuring and impairment charges. Overall, the positives—especially cash generation, margin resilience, and clear execution steps—outweigh the near-term headwinds, supporting a constructive outlook.Positive Updates
Record Free Cash Flow and Conversion
Generated record free cash flow of $490 million in 2025, up 25% year-over-year, with free cash flow conversion of 97% (an improvement of 21 percentage points versus prior year).
Negative Updates
Full-Year Revenue Decline (Reported)
2025 reported revenue of $3.70 billion declined 6% versus $3.93 billion in 2024, primarily due to previously disclosed divestitures and product life-cycle management actions (organic revenues were approximately flat).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Free Cash Flow and Conversion
Generated record free cash flow of $490 million in 2025, up 25% year-over-year, with free cash flow conversion of 97% (an improvement of 21 percentage points versus prior year).
Read all positive updates
Company Guidance
Sensata guided Q1 2026 revenue of $917–$937M, adjusted operating income $168–$175M, adjusted operating margin 18.4%–18.6%, adjusted net income $118–$125M and adjusted EPS $0.81–$0.85 (midpoint implying ~2% YoY revenue growth, ~3% YoY adjusted operating income growth, ~20 bps YoY margin expansion and ~+$0.05 EPS), and assumed roughly $12M of tariff costs and pass‑through at the midpoint (trade policies as of Feb 18, 2026). Management noted a Q4→Q1 seasonal margin step‑down of ~110 bps (improved vs. ~200 bps historically), expects margins to normalize to ≥19% in Q2 and expand each quarter thereafter, reiterates a 19% annual margin floor while targeting at least 20 bps of full‑year margin expansion, and expects full‑year 2026 low‑single‑digit revenue growth. They warned Q1 free‑cash‑flow conversion will be seasonally lowest (impacted by ~ $20M higher variable compensation and front‑loaded interest), may see slightly lower FCF conversion in H1, and are targeting full‑year FCF conversion in the high‑80s% (above an 80% floor); precious‑metals exposure (silver, gold, platinum) is hedged and expected to be mitigated via supply‑chain, product redesign and pass‑through.Sensata Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
67
Positive
Cash Flow
74
Positive
| 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 | 528.80M | 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 | 2.92B | 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
Positive
34.99
Price Trends
35.41
Negative
34.29
Positive
32.69
Positive
Market Momentum
-0.10
Negative
50.17
Neutral
39.13
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 34.99 is above the 20-day moving average (MA) of 34.66, below the 50-day MA of 35.41, and above the 200-day MA of 32.69, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.54B | 44.07 | 21.34% | 0.16% | 13.13% | 24.02% | |
69 Neutral | $4.04B | 13.96 | 18.49% | ― | 0.14% | 14.12% | |
68 Neutral | $5.10B | 155.81 | 1.11% | 1.43% | -8.07% | 63.50% | |
68 Neutral | $4.54B | 27.58 | 16.91% | ― | 9.37% | 15.70% | |
68 Neutral | $10.27B | 41.17 | 10.61% | ― | 17.88% | 91.41% | |
66 Neutral | $7.20B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ST
Sensata
34.99
14.43
70.15%
ESE
Esco Technologies
291.33
139.64
92.05%
ITRI
Itron
89.98
-9.55
-9.60%
OSIS
OSI Systems
275.55
84.39
44.15%
SANM
Sanmina-Sci
131.82
54.03
69.46%
TTMI
TTM Technologies
99.29
79.45
400.45%
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.