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Sensient Technologies Corp. (SXT)
NYSE:SXT
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Sensient Technologies (SXT) AI Stock Analysis

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SXT

Sensient Technologies

(NYSE:SXT)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
$130.00
â–²(29.66% Upside)
Action:Reiterated
Date:06/24/26
SXT scores as moderately attractive, led by positive earnings-call momentum (raised 2026 outlook and strong Q1 execution) and supportive technical trends (price above key moving averages with positive MACD). The main constraints are weaker cash generation and a premium valuation (high P/E), which increase reliance on continued delivery against upgraded targets.
Positive Factors
Natural-color pipeline
The company has built a durable pipeline around natural-color conversions, invoicing ~$20M toward a $1B target and reporting strong wins across regions. This drives long-term product differentiation, higher-margin mix in Color, and sustained addressable-market expansion as customers replace synthetics.
Negative Factors
Weak cash conversion
Subpar cash conversion limits internal funding for growth and raises reliance on external financing. With FCF sharply down, Sensient faces constrained flexibility to absorb higher capex or working-capital swings, increasing sensitivity to input-cost shocks and potentially pressuring balance-sheet choices over the next several quarters.
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Positive Factors
Negative Factors
Natural-color pipeline
The company has built a durable pipeline around natural-color conversions, invoicing ~$20M toward a $1B target and reporting strong wins across regions. This drives long-term product differentiation, higher-margin mix in Color, and sustained addressable-market expansion as customers replace synthetics.
Read all positive factors

Sensient Technologies (SXT) vs. SPDR S&P 500 ETF (SPY)

Sensient Technologies Business Overview & Revenue Model

Company Description
Sensient Technologies Corporation, operating alongside its various subsidiaries, specializes in the creation, production, and global distribution of colors, flavorings, and an array of other specialized ingredients. The company's extensive market ...
How the Company Makes Money
Sensient makes money primarily by selling specialty ingredients and ingredient systems to manufacturers (B2B), generating revenue from product shipments under customer purchase orders and supply agreements. Its key revenue streams are organized ar...

Sensient Technologies Earnings Call Summary

Earnings Call Date:Apr 24, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a decisively positive operational update: management reported above-expectation Q1 results (7% revenue, 10% EBITDA, 14% EPS growth in local currency), upgraded full-year guidance, strong Color Group performance and growing natural-color sales wins and pipeline toward a $1B target. These positives are balanced against near-term execution costs — elevated capex and working capital to expand natural color capacity, a projected increase in interest expense and temporary cash outflows — and external risks (geopolitics, input inflation, regulatory timing). Overall, the momentum, upgraded guidance and visible pipeline materially outweigh the manageable near-term financial and operational burdens.
Positive Updates
Consolidated top-line and EPS growth
Reported strong start to 2026 with 7% local currency revenue growth, 10% local currency adjusted EBITDA growth and 14% local currency adjusted EPS growth in Q1; revenue of $435.8M vs $392.3M prior year; consolidated operating income of $66.7M.
Negative Updates
Elevated capital spending and working capital needs
Significant near-term capital plan: $150M–$170M consolidated capex in 2026 plus $225M–$250M planned natural color capital over next couple years; company expects increased natural color working capital (inventory) to prepare for conversions, which will increase leverage in the near term.
Read all updates
Q1-2026 Updates
Negative
Consolidated top-line and EPS growth
Reported strong start to 2026 with 7% local currency revenue growth, 10% local currency adjusted EBITDA growth and 14% local currency adjusted EPS growth in Q1; revenue of $435.8M vs $392.3M prior year; consolidated operating income of $66.7M.
Read all positive updates
Company Guidance
Sensient raised its 2026 outlook: based on strong Q1 results (7% local‑currency revenue growth, ~10.4% local‑currency adjusted EBITDA growth and ~14% local‑currency adjusted EPS growth) it now expects consolidated local‑currency revenue to increase high single‑ to double‑digits (up from mid‑single to double‑digits) and local‑currency adjusted EBITDA and adjusted EPS to grow high single‑ to double‑digit rates (previously mid‑single to double‑digit EBITDA and mid‑single to high‑single‑digit EPS); management expects acceleration in revenue and EBITDA in H2, Q2 interest expense of ~ $9.0M and a Q2 adjusted tax rate of ~25% (Q1 consolidated adjusted tax rate was 24.9%), FX to be immaterial for the year despite a ~$0.06 Q1 EPS FX benefit, consolidated capex of $150–$170M for 2026 with $225–$250M of natural‑color capital planned over the next couple years, increased natural‑color working capital and inventories to support conversions, net debt/credit‑adjusted EBITDA at 2.4x as of 3/31/26 (expected to move into the upper‑2x range later in the year), no buybacks planned, and a goal to lift ROIC to the mid‑teens over the next few years.

Sensient Technologies Financial Statement Overview

Summary
Fundamentals are solid but uneven. Revenue growth is modest and profitability remains healthy, with improving leverage and low‑teens ROE supporting balance sheet quality. The key drag is weak cash conversion and sharply lower free cash flow versus the prior year, signaling working-capital/capex pressure that reduces financial flexibility.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
48
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.66B1.61B1.56B1.46B1.44B1.38B
Gross Profit560.21M539.30M507.09M460.30M489.11M454.75M
EBITDA281.89M268.23M251.91M212.84M249.22M222.08M
Net Income144.20M134.49M124.67M93.39M140.89M118.75M
Balance Sheet
Total Assets2.29B2.24B2.02B2.01B1.98B1.75B
Cash, Cash Equivalents and Short-Term Investments38.54M36.53M26.63M28.93M20.92M25.74M
Total Debt767.79M778.58M633.37M658.54M650.70M511.55M
Total Liabilities1.07B1.05B962.81M961.18M982.02M807.07M
Stockholders Equity1.22B1.19B1.06B1.05B999.60M938.42M
Cash Flow
Free Cash Flow21.89M38.42M97.94M81.83M-67.25M84.43M
Operating Cash Flow123.19M127.83M157.15M169.70M12.07M145.22M
Investing Cash Flow-98.32M-92.68M-59.21M-87.62M-98.45M-35.56M
Financing Cash Flow-28.60M-35.03M-81.55M-82.00M86.18M-107.76M

Sensient Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price100.26
Price Trends
50DMA
114.44
Positive
100DMA
103.27
Positive
200DMA
98.99
Positive
Market Momentum
MACD
1.83
Negative
RSI
56.51
Neutral
STOCH
67.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXT, the sentiment is Positive. The current price of 100.26 is below the 20-day moving average (MA) of 116.81, below the 50-day MA of 114.44, and above the 200-day MA of 98.99, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SXT.

Sensient Technologies Risk Analysis

Sensient Technologies disclosed 18 risk factors in its most recent earnings report. Sensient Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sensient Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$5.43B34.5012.38%0.61%9.62%16.72%
76
Outperform
$2.00B17.778.68%2.19%0.25%325.27%
68
Neutral
$5.25B36.0512.14%1.70%5.80%12.24%
64
Neutral
$3.14B17.308.09%1.54%-0.57%81.10%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
$3.39B21.586.64%3.48%1.33%57.45%
58
Neutral
$1.27B-89.80-1.15%3.33%5.46%-125.23%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SXT
Sensient Technologies
123.29
20.94
20.46%
BCPC
Balchem
168.95
8.06
5.01%
FUL
H.B. Fuller Company
58.29
-2.70
-4.43%
IOSP
Innospec
81.39
-4.63
-5.38%
AVNT
Avient
36.96
4.51
13.89%
SCL
Stepan Company
55.72
0.31
0.55%

Sensient Technologies Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Sensient Technologies Secures New $400 Million Term Loan
Positive
Jun 23, 2026
On June 18, 2026, Sensient Technologies Corporation entered into a new unsecured delayed-draw term loan facility of up to $400 million, arranged with CoBank and a syndicate of lenders, to be drawn in up to five advances over 15 months and maturing...
Executive/Board ChangesShareholder Meetings
Sensient Shareholders Back Board, Executive Pay and Auditor
Positive
Apr 28, 2026
Sensient Technologies held its annual meeting of shareholders on April 23, 2026, at which investors elected nine directors to serve until the next annual meeting, signaling continued support for the company’s existing board composition and l...
Business Operations and StrategyFinancial Disclosures
Sensient Technologies Lifts 2026 Outlook After Strong Quarter
Positive
Apr 24, 2026
On April 24, 2026, Sensient Technologies reported that first-quarter 2026 revenue rose 11.1% year over year to $435.8 million, with operating income up 24.7% to $66.7 million and earnings per share advancing 28.4% to $1.04, reflecting strong prici...
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.Date of analysis: Jun 24, 2026