Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: 2.38%
• Average Volume (3M): 357.05K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.54
• Revenue Growth: 6.92%
• EPS Growth: 33.08%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Chemicals - Specialty
• EPS (TTM): 2.94
• Shares Outstanding: 42,437,620
• 10 Day Avg. Volume: 493,284
• 30 Day Avg. Volume: 357,053
• PEG Ratio: 0.75
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.98
• Price to Cash Flow (P/CF): 36.10
• P/FCF Ratio: 210.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $85.00
• Price Target Upside: 16.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Sensient Technologies demonstrates solid financial performance with robust revenue and EBITDA growth, supported by strong technical indicators. The company's strategic initiatives and positive earnings guidance further bolster its outlook. While valuation metrics suggest a fair price, high debt levels and challenges in natural color conversion remain potential risks. Overall, Sensient Technologies presents a stable investment opportunity with room for growth.

Sensient Technologies Business Overview & Revenue Model

Company Description

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, the Asia Pacific, and internationally. It operates through three segments: Flavors & Extracts Group, Color Group, and Asia Pacific Group. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, personal care, and household-products industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for cosmetics, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Industrial Colors trade names. The company was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Sensient Technologies makes money by supplying specialty ingredients to a diverse range of industries, primarily focusing on food and beverage, personal care, and pharmaceuticals. The company's revenue model is based on the sale of its color, flavor, and fragrance products, which are critical components in product formulation for its clients. Sensient's key revenue streams include direct sales to manufacturers and processors that integrate these ingredients into their final products. The company also benefits from its strong emphasis on innovation and R&D, enabling the development of customized solutions that meet specific client needs, often leading to long-term partnerships and recurring sales. Additionally, Sensient's global reach allows it to tap into emerging markets and capitalize on international growth opportunities.

Sensient Technologies Financial Statement Overview

Summary

Sensient Technologies presents a solid financial standing with consistent revenue growth, strong profitability, and effective cash flow management. The balance sheet shows improved leverage ratios, though high debt levels remain a concern. Overall, the financial health is stable with a positive outlook due to strong cash flow and growth trajectory.

Income Statement

Sensient Technologies has demonstrated a steady revenue growth with a 6.9% increase from 2023 to 2024. The company maintains a strong gross profit margin due to its effective cost management. However, the net profit margin saw a slight decline due to higher operating expenses. Overall, strong revenue growth and reasonable profitability metrics underpin a solid income statement performance.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better financial leverage management. With an equity ratio of approximately 100% in 2024, the company shows strong financial stability. However, high total debt levels remain a concern, and stockholder equity needs to grow more robustly to further enhance balance sheet strength.

Cash Flow

Sensient Technologies exhibits a robust operating cash flow to net income ratio, demonstrating efficient conversion of income into cash. The company also shows consistent free cash flow, with significant growth observed from 2023 to 2024. This strong cash flow generation supports ongoing operations and potential investment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.56B	1.46B	1.44B	1.38B	1.33B
	Gross Profit
507.09M	460.30M	489.11M	454.66M	423.75M
	EBIT
191.58M	155.02M	196.75M	170.03M	152.66M
	EBITDA
191.58M	212.84M	249.22M	222.08M	202.30M
	Net Income Common Stockholders
124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.63M	28.93M	20.92M	25.74M	24.77M
	Total Assets
2.02B	2.01B	1.98B	1.75B	1.74B
	Total Debt
633.37M	658.54M	650.70M	511.55M	527.25M
	Net Debt
606.75M	629.61M	629.78M	485.81M	502.48M
	Total Liabilities
962.81M	961.18M	982.02M	807.07M	806.52M
	Stockholders Equity
2.02B	1.05B	999.60M	938.42M	934.34M
Cash Flow		Free Cash Flow
97.94M	81.83M	-67.25M	84.43M	166.62M
	Operating Cash Flow
157.15M	169.70M	12.07M	145.22M	218.78M
	Investing Cash Flow
-87.62M	-87.62M	-98.45M	-35.56M	-33.42M
	Financing Cash Flow
-82.00M	-82.00M	86.18M	-107.76M	-184.15M

Sensient Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXT, the sentiment is Negative. The current price of 72.71 is below the 20-day moving average (MA) of 73.50, below the 50-day MA of 73.00, and below the 200-day MA of 74.62, indicating a bearish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SXT.

Sensient Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	73 Outperform	$3.11B	24.92	11.79%	2.38%	6.92%	33.08%
HWKN	71 Outperform	$2.35B	28.67	19.24%	0.62%	3.01%	12.36%
IOSP	65 Neutral	$2.26B	63.42	3.02%	1.72%	-5.31%	-74.42%
KWR	63 Neutral	$1.97B	17.09	8.49%	1.69%	-5.82%	3.75%
IFF	55 Neutral	$18.66B	76.88	1.71%	2.39%	0.04%	―
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%
SSL	46 Neutral	$1.82B	―	-28.05%	2.00%	-4.31%	-1421.83%

Sensient Technologies Corporate Events

Sensient Technologies Reports Strong Q4 Financial Performance

Sensient Technologies reported significant improvements in their financial performance for the fourth quarter ending December 31, 2024. Revenue increased by 7.8% to $376.4 million, and operating income surged to $42 million from $8.1 million in the previous year, driven by higher sales volumes, particularly in natural colors. Earnings per share rose to 71 cents from a loss of 14 cents in the previous year, highlighting the company’s strong market position and successful execution of its Portfolio Optimization Plan, which reduced costs significantly.