Sensata (ST)
NYSE:ST
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Sensata
(NYSE:ST)
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Rating:63Neutral
Price Target:
$45.00
▲(10.65% Upside)
Action:ReiteratedDate:04/29/26
The score is driven by solid cash generation and a strengthened balance sheet, plus a constructive earnings outlook focused on sustaining ~19% adjusted operating margins. These positives are tempered by weak/volatile profitability in the financial statements and a very expensive valuation (P/E 155.81), despite favorable but somewhat overextended technical momentum.
Positive Factors
Strong cash generation
Consistent multi-year free cash flow (TTM ~ $490M and a record Q1 $105M at 83% conversion) provides durable internal funding for reinvestment, modest capex, dividends and buybacks, and supports deleveraging or strategic investments without relying on external financing.
Negative Factors
Volatile and compressed profitability
Despite recent revenue recovery, margins have materially compressed and results showed a loss in 2023. Persistent margin volatility and very low trailing net margin reduce earnings durability, depress returns on equity (~1.1% TTM) and limit confidence in sustained cash available for shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent multi-year free cash flow (TTM ~ $490M and a record Q1 $105M at 83% conversion) provides durable internal funding for reinvestment, modest capex, dividends and buybacks, and supports deleveraging or strategic investments without relying on external financing.
Read all positive factors
Sensata (ST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.16B
Dividend Yield1.43%
Average Volume (3M)1.66M
Price to Earnings (P/E)14.7
Beta (1Y)1.53
Revenue Growth-5.93%
EPS Growth-76.11%
CountryUS
Employees18,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.86
Shares Outstanding145,799,550
10 Day Avg. Volume1,393,564
30 Day Avg. Volume1,659,859
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 Cap1.36
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit8.28
Enterprise Value/Ebitda11.06
Forecast
1Y Price Target
$43.60Price Target Upside7.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.64
Revenue Forecast (FY)$3.82B
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:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 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
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
40.67
Price Trends
36.04
Positive
35.02
Positive
33.08
Positive
Market Momentum
1.20
Negative
69.48
Neutral
84.35
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 40.67 is above the 20-day moving average (MA) of 36.52, above the 50-day MA of 36.04, and above the 200-day MA of 33.08, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.35 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 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $8.31B | 44.07 | 21.34% | 0.16% | 14.09% | 19.32% | |
74 Outperform | $14.97B | 41.17 | 10.61% | ― | 18.98% | 211.82% | |
70 Outperform | $10.27B | 18.96 | 7.33% | ― | 20.93% | 1.74% | |
69 Neutral | $3.85B | 18.75 | 18.49% | ― | -3.02% | 25.50% | |
68 Neutral | $4.80B | 27.58 | 16.91% | ― | 8.96% | 14.72% | |
63 Neutral | $6.16B | 14.72 | 1.11% | 1.43% | -5.93% | -76.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ST
Sensata
41.53
20.48
97.33%
ESE
Esco Technologies
317.01
159.66
101.47%
ITRI
Itron
87.00
-23.88
-21.54%
OSIS
OSI Systems
287.30
84.18
41.44%
SANM
Sanmina-Sci
215.46
136.45
172.70%
TTMI
TTM Technologies
137.59
117.17
573.80%
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.