Sensata (ST) AI Stock Analysis

• Market Cap: $4.71B
• Dividend Yield: 1.52%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 39.4
• Beta (1Y): 1.31
• Revenue Growth: -5.61%
• EPS Growth: N/A
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.78
• Shares Outstanding: 146,290,190
• 10 Day Avg. Volume: 1,758,049
• 30 Day Avg. Volume: 1,506,594
• PEG Ratio: -1.55
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.19
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 9.16
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $28.30
• Price Target Upside: -10.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 59 Neutral
• 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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84B	3.93B	4.05B	4.03B	3.82B	3.05B
Gross Profit	1.01B	989.00M	1.25B	1.32B	1.28B	926.53M
EBITDA	437.96M	456.83M	506.99M	856.49M	852.30M	592.63M
Net Income	122.38M	128.48M	-3.91M	310.69M	363.58M	164.29M
Balance Sheet
Total Assets	7.18B	7.14B	7.68B	8.76B	8.61B	7.84B
Cash, Cash Equivalents and Short-Term Investments	588.14M	593.67M	508.10M	1.23B	1.71B	1.86B
Total Debt	3.20B	3.21B	3.41B	4.24B	4.25B	4.00B
Total Liabilities	4.33B	4.25B	4.68B	5.65B	5.52B	5.14B
Stockholders Equity	2.85B	2.89B	3.00B	3.11B	3.09B	2.71B
Cash Flow
Free Cash Flow	414.61M	392.99M	272.07M	310.53M	409.75M	453.06M
Operating Cash Flow	551.63M	551.55M	456.68M	460.59M	554.15M	559.77M
Investing Cash Flow	16.76M	-19.16M	-165.00M	-590.57M	-882.09M	-182.09M
Financing Cash Flow	-457.35M	-442.80M	-1.02B	-353.46M	174.92M	710.18M

Sensata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	78 Outperform	$3.87B	28.08	16.73%	―	14.93%	12.89%
OSIS	78 Outperform	$3.87B	28.08	16.73%	―	14.93%	12.89%
SANM	73 Outperform	$5.42B	23.44	11.03%	―	-1.50%	1.84%
SANM	73 Outperform	$5.42B	23.44	11.03%	―	-1.50%	1.84%
MKSI	71 Outperform	$7.01B	31.16	9.50%	0.84%	-1.14%	―
MKSI	71 Outperform	$7.01B	31.16	9.50%	0.84%	-1.14%	―
FARO	68 Neutral	$848.20M	―	-0.34%	―	-4.76%	97.93%
FARO	68 Neutral	$848.20M	―	-0.34%	―	-4.76%	97.93%
LFUS	62 Neutral	$5.72B	53.72	4.39%	1.18%	-3.43%	-50.48%
LFUS	62 Neutral	$5.72B	53.72	4.39%	1.18%	-3.43%	-50.48%
ST	59 Neutral	$4.71B	39.35	4.20%	1.52%	-5.61%	―
Sector *	58 Neutral	$931.08M	14.69	-15.89%	9.76%	10.79%	-36.58%

Sensata Corporate Events

Sensata Approves Key Resolutions at Annual Meeting

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.

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.