Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: 1.69%
• Average Volume (3M): 306.59K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.57
• Revenue Growth: 4.25%
• EPS Growth: 56.51%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.96
• Shares Outstanding: 42,481,950
• 10 Day Avg. Volume: 386,505
• 30 Day Avg. Volume: 306,594
• PEG Ratio: 0.72
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 30.66
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 17.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.45
• Revenue Forecast (FY): $1.61B

• Rating: 63 Neutral
• Price Target: $96.00 ▼(-0.84% Downside)

Sensient Technologies' overall stock score reflects strong financial performance and positive guidance from the earnings call, which are offset by technical analysis indicators suggesting bearish momentum and a relatively high valuation. The company's strategic focus on natural color conversion presents a significant growth opportunity, but challenges in cash flow management and certain market segments pose risks.

Positive Factors

Natural Color Conversion

The strategic focus on converting synthetic to natural colors represents a significant growth opportunity, potentially adding $100 million in revenue, enhancing market position and aligning with consumer trends towards natural products.

Strong Financial Performance

Robust financial performance with significant EBITDA and EPS growth indicates strong operational efficiency and profitability, supporting long-term business sustainability.

Innovative Product Launches

Innovative product launches drive sales growth and enhance competitive advantage by meeting evolving consumer demands, supporting sustained market relevance.

Negative Factors

Cash Flow Management Challenges

Challenges in cash flow management with declining free cash flow growth can constrain investment capacity and operational flexibility, impacting long-term growth potential.

Flavors and Extracts Group Revenue Decline

Revenue decline in the Flavors and Extracts Group suggests market challenges and competitive pressures, potentially affecting overall revenue growth and market share.

Volume Headwinds in Asia Pacific

Persistent volume challenges in Asia Pacific may limit growth opportunities in a key market, affecting regional performance and overall revenue diversification.

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 generates revenue primarily through the sale of its color and flavor products, which are sold to manufacturers in the food, beverage, and cosmetic industries. The company has a diversified revenue model that includes direct sales to customers, as well as partnerships and collaborations with other companies to develop custom solutions. Key revenue streams are derived from both domestic and international markets, with a notable emphasis on innovation and product development to meet evolving consumer preferences. Sensient also benefits from strategic partnerships with major brands, enhancing its market presence and driving sales growth.

Sensient Technologies Financial Statement Overview

Summary

Sensient Technologies demonstrates solid revenue growth and improved profitability, but faces challenges in cash flow management. The balance sheet shows reduced leverage, enhancing financial stability. Continued focus on cost management and cash flow improvement will be crucial for sustaining growth and profitability.

Income Statement

Sensient Technologies shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.24%. The gross profit margin is relatively stable, although it has decreased from previous years. Net profit margin has improved to 8.72% in the TTM, indicating better profitability. However, EBIT and EBITDA margins have slightly declined, suggesting potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.32 in the TTM, indicating a stronger balance sheet with reduced leverage. Return on equity is at 10.08%, showing a decent return for shareholders. The equity ratio is stable, reflecting a balanced capital structure. However, the overall return on equity has decreased compared to previous years.

Cash Flow

Sensient Technologies faces challenges in cash flow management, with a significant decline in free cash flow growth rate (-62.38% in TTM). The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The free cash flow to net income ratio is moderate at 0.46, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.56B	1.46B	1.44B	1.38B	1.33B
Gross Profit	535.37M	507.09M	460.30M	489.11M	454.75M	425.54M
EBITDA	271.97M	251.91M	212.84M	249.22M	222.08M	202.30M
Net Income	139.11M	124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet
Total Assets	2.21B	2.02B	2.01B	1.98B	1.75B	1.74B
Cash, Cash Equivalents and Short-Term Investments	42.67M	26.63M	28.93M	20.92M	25.74M	24.77M
Total Debt	711.95M	633.37M	658.54M	650.70M	511.55M	527.25M
Total Liabilities	1.03B	962.81M	961.18M	982.02M	807.07M	806.52M
Stockholders Equity	1.18B	1.06B	1.05B	999.60M	938.42M	934.34M
Cash Flow
Free Cash Flow	23.74M	97.94M	81.83M	-67.25M	84.43M	166.62M
Operating Cash Flow	104.65M	157.15M	169.70M	12.07M	145.22M	218.78M
Investing Cash Flow	-83.01M	-59.21M	-87.62M	-98.45M	-35.56M	-33.42M
Financing Cash Flow	-20.30M	-81.55M	-82.00M	86.18M	-107.76M	-184.15M

Sensient Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 96.81 is above the 20-day moving average (MA) of 95.06, above the 50-day MA of 94.30, and above the 200-day MA of 95.35, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SXT.

Sensient Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	75 Outperform	$5.06B	34.21	12.06%	0.61%	7.55%	22.43%
SCL	66 Neutral	$1.08B	24.05	3.67%	3.27%	5.35%	-1.43%
SXT	63 Neutral	$4.11B	29.59	12.31%	1.69%	4.25%	56.51%
AVNT	63 Neutral	$2.85B	25.21	4.79%	3.46%	1.03%	-24.57%
FUL	62 Neutral	$3.24B	28.77	6.05%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOSP	54 Neutral	$1.92B	-1,324.49	-0.09%	2.20%	-4.49%	-100.80%

Sensient Technologies Corporate Events

Sensient Technologies Amends By-Laws, Eliminates Finance Committee

On December 4, 2025, Sensient Technologies Corporation’s Board of Directors amended the company’s By-Laws to eliminate the Finance Committee, reallocating its responsibilities to the Audit and Compensation and Development Committees. This change reflects a strategic realignment of committee duties, potentially impacting the company’s governance structure and operational efficiency.

Sensient Technologies Reports Strong Q3 2025 Results

On October 31, 2025, Sensient Technologies Corporation reported its financial results for the third quarter ended September 30, 2025. The company achieved a 5.0% increase in reported revenue, reaching $412.1 million, and a 14.2% rise in operating income to $57.7 million compared to the same period in 2024. Earnings per share also grew by 13.0% to 87 cents. Despite a slight decline in the Flavors & Extracts Group’s revenue, the Color Group saw significant growth, driven by higher prices and strong volume growth in food and pharmaceutical product lines. The Asia Pacific Group also reported a slight revenue increase. The company’s strong performance is attributed to its focus on customer service and innovation, particularly in natural colors.

Sensient Technologies Announces Leadership Changes

On September 15, 2025, Sensient Technologies announced the upcoming retirement of Michael C. Geraghty, President of the Color Group, effective March 31, 2026. Following his retirement, Geraghty will join the company’s Scientific Advisory Committee and advise the CEO. Steven B. Morris, currently President of the Flavors & Extracts Group, will succeed Geraghty, while Gregory T. Till will take over Morris’s role effective January 1, 2026. These leadership changes reflect Sensient’s strategic focus on leveraging experienced internal talent to maintain its market position and operational continuity.