Sensata (ST) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 1.30
• Revenue Growth: -5.61%
• EPS Growth: N/A
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.78
• Shares Outstanding: 146,290,190
• 10 Day Avg. Volume: 1,206,696
• 30 Day Avg. Volume: 1,565,069
• PEG Ratio: -7.05
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.54
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 4.27
• 1Y Price Target: $28.30
• Price Target Upside: 1.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $29.00 ▲(4.43%Upside)

Sensata's overall stock score reflects strong earnings performance and technical momentum, counterbalanced by valuation concerns and net income volatility. Strategic wins and operational improvements support a favorable outlook, but attention to profitability and macroeconomic challenges is needed.

Positive Factors

Earnings

Sensata Technologies reported a solid F1Q, beating guidance on both revenues and EPS and guided F2Q above current estimates.

Leadership

The new CEO, Stephan von Schuckmann, has extensive experience in the automotives and technology sectors, which is expected to bring valuable leadership to the company.

Product Launch

Sensata Technologies launched the A2L leak protection sensor, with revenue expected to grow significantly.

Negative Factors

Automotive Market

A weaker automotive market into 2025 could pose challenges to the company's growth and margin expansion efforts.

Market Challenges

Weaker than expected growth for the second half of the year is anticipated due to lower than previously expected unit volumes in autos.

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 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 Solutions. The Performance Sensing segment develops and manufactures sensors, high-voltage contactors, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain (engine/transmission), and exhaust management. This segment serves customers in the automotive, and heavy vehicle and off-road industries. The Sensing Solutions segment develops and manufactures application-specific sensor and electrical protection products primarily serving the industrial and aerospace markets. Its products include pressure and position sensors, motor and compressor protectors, high-voltage contactors, solid state relays, bimetal electromechanical controls, power inverters, charge controllers, battery management systems, operator controls, and Internet of Things solutions. The company was founded in 1916 and is headquartered in Attleboro, Massachusetts.

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
	EBIT
406.94M	149.28M	553.51M	508.82M	633.24M	337.74M
	EBITDA
437.96M	456.83M	506.99M	856.49M	852.30M	592.63M
	Net Income Common Stockholders
122.38M	128.48M	-3.91M	310.69M	363.58M	164.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
508.10M	593.67M	508.10M	1.23B	1.71B	1.86B
	Total Assets
7.68B	7.14B	7.68B	8.76B	8.61B	7.84B
	Total Debt
3.44B	3.21B	3.41B	4.24B	4.25B	4.00B
	Net Debt
2.93B	2.62B	2.90B	3.01B	2.54B	2.14B
	Total Liabilities
4.68B	4.25B	4.68B	5.65B	5.52B	5.14B
	Stockholders Equity
3.00B	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: 27.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 27.77 is above the 20-day moving average (MA) of 26.67, above the 50-day MA of 23.29, and below the 200-day MA of 29.13, indicating a neutral trend. The MACD of 0.89 indicates Positive momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 77.34 is Neutral, 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
SANM	79 Outperform	$4.66B	20.17	11.03%	―	-1.50%	1.84%
OSIS	75 Outperform	$3.80B	27.55	16.73%	―	14.93%	12.89%
ST	74 Outperform	$3.95B	33.01	4.20%	1.77%	-5.61%	―
MKSI	74 Outperform	$5.95B	26.42	9.50%	0.99%	-1.14%	―
LFUS	72 Outperform	$5.38B	50.49	4.39%	1.29%	-3.43%	-50.48%
FARO	66 Neutral	$815.58M	―	-0.34%	―	-4.76%	97.93%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%

Sensata Corporate Events

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.