Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $4.79B
• Dividend Yield: 1.47%
• Average Volume (3M): 466.26K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.61
• Revenue Growth: 4.95%
• EPS Growth: 53.63%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 0.94
• Shares Outstanding: 42,466,137
• 10 Day Avg. Volume: 339,845
• 30 Day Avg. Volume: 466,259
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $129.00
• Price Target Upside: 15.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $129.00 ▲(15.89% Upside)

Sensient Technologies demonstrates strong financial performance and positive technical indicators, supported by a favorable earnings call. However, the high P/E ratio suggests potential overvaluation, and cash flow challenges persist.

Sensient Technologies Business Overview & Revenue Model

Company Description

Sensient Technologies Corporation (SXT) is a global leader in the manufacture and supply of color, flavor, and fragrance products. The company operates primarily in two segments: Colors and Flavors & Fragrances. Sensient's core products include natural and synthetic colorants, flavors for food and beverages, and fragrance compounds for personal care and household products. With a commitment to innovation and sustainability, Sensient serves a diverse range of industries, including food and beverage, cosmetics, and pharmaceuticals, leveraging advanced technologies to create unique solutions for its customers.

How the Company Makes Money

Sensient Technologies generates revenue primarily through the sale of its color and flavor products across various sectors. The company has a diverse revenue model that includes direct sales to manufacturers and businesses in the food, beverage, cosmetics, and pharmaceutical industries. Key revenue streams include the sale of natural and synthetic colorants, proprietary flavors, and fragrance formulations. Sensient has established significant partnerships and collaborations with leading companies in its target markets, which enhance its distribution capabilities and expand its customer base. Additionally, the company's focus on innovation and the development of new products allows it to capitalize on emerging trends and demands, further contributing to its earnings.

Sensient Technologies Financial Statement Overview

Summary

Sensient Technologies shows strong revenue growth and profitability improvements, with a stable balance sheet. However, cash flow management presents challenges, particularly in sustaining free cash flow growth.

Income Statement

Sensient Technologies has demonstrated strong revenue growth with a 6.84% increase in TTM, supported by consistent gross profit margins around 33%. The net profit margin has improved to 8.56%, indicating enhanced profitability. However, the EBIT and EBITDA margins, while stable, show room for improvement compared to industry leaders.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.64, reflecting a balanced approach to leveraging. Return on equity is healthy at 12.28%, showcasing effective use of equity to generate profits. The equity ratio of 52.48% indicates a solid equity base, although there is potential to optimize asset utilization further.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.55, suggesting reasonable cash generation from operations. However, the free cash flow growth rate is negative, indicating challenges in maintaining cash flow levels. The free cash flow to net income ratio of 0.46 highlights potential constraints in cash availability for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.56B	1.46B	1.44B	1.38B	1.33B
Gross Profit	524.43M	507.09M	460.30M	489.11M	454.66M	423.78M
EBITDA	264.69M	251.91M	212.84M	249.22M	222.08M	202.30M
Net Income	134.84M	124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet
Total Assets	2.20B	2.02B	2.01B	1.98B	1.75B	1.74B
Cash, Cash Equivalents and Short-Term Investments	56.69M	26.63M	28.93M	20.92M	25.74M	24.77M
Total Debt	736.40M	633.37M	658.54M	686.90M	538.35M	550.75M
Total Liabilities	1.05B	962.81M	961.18M	982.02M	807.07M	806.52M
Stockholders Equity	1.16B	1.06B	1.05B	999.60M	938.42M	934.34M
Cash Flow
Free Cash Flow	63.11M	97.94M	81.83M	-67.25M	84.43M	166.62M
Operating Cash Flow	137.51M	157.15M	169.70M	12.07M	145.22M	218.78M
Investing Cash Flow	-77.81M	-59.21M	-87.62M	-98.45M	-35.56M	-33.42M
Financing Cash Flow	-29.48M	-81.55M	-82.00M	86.18M	-107.76M	-184.15M

Sensient Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXT, the sentiment is Neutral. The current price of 111.31 is below the 20-day moving average (MA) of 114.43, below the 50-day MA of 111.62, and above the 200-day MA of 87.49, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SXT.

Sensient Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	76 Outperform	$5.26B	37.15	11.99%	0.54%	5.74%	21.54%
SXT	75 Outperform	$4.79B	35.55	12.18%	1.47%	4.95%	53.63%
FUL	74 Outperform	$3.37B	33.87	5.62%	1.50%	-0.09%	-37.60%
AVNT	70 Neutral	$3.47B	29.31	5.09%	2.89%	3.28%	1.69%
SCL	67 Neutral	$1.13B	19.75	4.77%	3.16%	2.64%	66.43%
IOSP	63 Neutral	$2.12B	113.00	1.55%	1.95%	-5.45%	-87.13%
Sector *	61 Neutral	$10.41B	7.18	-0.06%	2.87%	2.87%	-36.73%

Sensient Technologies Corporate Events

Sensient Technologies Unveils Strategic Growth Focus

On August 12, 2025, Sensient Technologies Corporation released an updated investor presentation on its website, highlighting its strategic focus on growth in high-margin areas and innovation in natural colors. The company has been optimizing its portfolio by divesting low-margin businesses and investing in R&D and technology to enhance its offerings. This strategic shift aims to strengthen Sensient’s market position and drive long-term growth, benefiting stakeholders by aligning with consumer demand and addressing market gaps.

Sensient Technologies Reports Q2 2025 Financial Results

On July 25, 2025, Sensient Technologies reported its financial results for the second quarter ended June 30, 2025. The company saw a 2.7% increase in revenue to $414.2 million compared to the previous year, with operating income rising by 16.2% to $57.7 million. Earnings per share also increased by 20.5% to 88 cents. The Flavors & Extracts Group experienced a revenue decline due to lower volumes in natural ingredients, while the Color Group and Asia Pacific Group saw revenue growth driven by strong performance in food and pharmaceutical lines. The company incurred higher operating expenses primarily due to its Portfolio Optimization Plan.

Sensient Technologies Expands Receivables Purchase Agreement

On June 30, 2025, Sensient Technologies Corporation, through its subsidiary Sensient Receivables LLC, entered into Amendment No. 12 with Wells Fargo Bank to modify their existing Receivables Purchase Agreement. This amendment increases the facility limit from $85 million to $105 million and extends the termination date of the Receivables Securitization Program to August 31, 2026, potentially enhancing the company’s financial flexibility and operational capacity.

Sensient Technologies Secures $400 Million Credit Facility

On June 13, 2025, Sensient Technologies entered into a Fourth Amended and Restated Credit Agreement, establishing a $400 million senior unsecured revolving credit facility. This agreement, which involves several financial institutions, will be used to refinance existing debt and support general corporate needs, extending the maturity of the credit facility to June 2030. Additionally, Sensient amended a Loan Agreement with PNC Bank to extend its maturity date to June 30, 2027. These financial arrangements are expected to enhance Sensient’s financial flexibility and support its operational and strategic objectives.