Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: 1.47%
• Average Volume (3M): 467.79K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.62
• Revenue Growth: 4.95%
• EPS Growth: 53.63%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 0.94
• Shares Outstanding: 42,459,050
• 10 Day Avg. Volume: 485,697
• 30 Day Avg. Volume: 467,787
• PEG Ratio: 6.77
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.08
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 11.90
• Enterprise Value/Ebitda: 6.56
• 1Y Price Target: $110.00
• Price Target Upside: -1.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $124.00 ▲(11.10%Upside)

Sensient Technologies' overall score reflects its solid financial performance and positive outlook from the recent earnings call. Despite strong operational efficiency and bullish market momentum, concerns about overvaluation and potential short-term corrections due to overbought technical indicators slightly temper the score.

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 primarily through the sale of its colors, flavors, and specialty ingredient solutions to a wide range of industries. Its revenue model is centered on business-to-business transactions where it supplies ingredients to manufacturers of consumer goods. Key revenue streams include the Flavors & Extracts Group, which provides flavor systems for food and beverages, and the Color Group, which offers natural and synthetic color solutions for food, pharmaceuticals, and cosmetics. The company also benefits from strategic partnerships and long-term contracts with large manufacturers, contributing to stable and recurring revenue. Additionally, Sensient invests in research and development to innovate and expand its product offerings, catering to the growing demand for natural and sustainable ingredients.

Sensient Technologies Financial Statement Overview

Summary

Sensient Technologies demonstrates a strong financial position with good profitability and efficient cash flow management. Stable margins and balanced leverage indicate financial health, although growth prospects appear moderate due to sluggish revenue growth and low ROE.

Income Statement

Sensient Technologies shows a stable financial performance with a focus on profitability. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 32.47%, supported by a net profit margin of 7.99%. However, recent revenue growth appears sluggish, indicating potential challenges in expanding sales. The EBIT margin of 12.12% and EBITDA margin of 20.56% reflect solid operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging its equity. The equity ratio is 100%, suggesting high financial stability with all assets funded by equity. However, the return on equity (ROE) of 4.48% is relatively low, pointing to potential inefficiencies in generating returns from equity.

Cash Flow

Sensient Technologies demonstrates healthy cash flow management with positive free cash flow and a robust operating cash flow to net income ratio of 1.42. Although the free cash flow growth rate is not provided, the company's ability to generate free cash flow is a positive indicator for liquidity and operational flexibility.

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	423.78M
EBITDA	251.91M	212.84M	249.22M	222.08M	202.30M
Net Income	124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet
Total Assets	2.02B	2.01B	1.98B	1.75B	1.74B
Cash, Cash Equivalents and Short-Term Investments	26.63M	28.93M	20.92M	25.74M	24.77M
Total Debt	633.37M	658.54M	650.70M	511.55M	527.25M
Total Liabilities	962.81M	961.18M	982.02M	807.07M	806.52M
Stockholders Equity	1.06B	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	-59.21M	-87.62M	-98.45M	-35.56M	-33.42M
Financing Cash Flow	-81.55M	-82.00M	86.18M	-107.76M	-184.15M

Sensient Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 111.61 is above the 20-day moving average (MA) of 108.86, above the 50-day MA of 100.92, and above the 200-day MA of 82.33, indicating a bullish trend. The MACD of 3.22 indicates Positive momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 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
HWKN	71 Outperform	$3.36B	39.93	19.47%	0.45%	6.01%	12.38%
KWR	70 Outperform	$2.10B	22.49	6.78%	1.69%	-5.72%	-19.82%
IOSP	70 Neutral	$2.05B	77.50	2.21%	1.93%	-7.91%	-81.73%
SXT	69 Neutral	$4.73B	35.13	12.18%	1.47%	4.95%	53.63%
SSL	57 Neutral	$3.29B	―	-28.05%	2.00%	-4.31%	-1421.83%
IFF	56 Neutral	$19.24B	83.39	-6.08%	2.23%	0.68%	66.69%
Sector *	44 Neutral	C$976.69M	-6.88	-14.61%	2.56%	17.52%	-32.77%

Sensient Technologies Corporate Events

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.

The most recent analyst rating on (SXT) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.

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.

The most recent analyst rating on (SXT) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.

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.

The most recent analyst rating on (SXT) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.