Sensient Technologies Corp. (SXT)
NYSE:SXT
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Sensient Technologies
(NYSE:SXT)
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Rating:65Neutral
Price Target:
$89.00
â–¼(-3.44% Downside)
Action:ReiteratedDate:02/14/26
The score is primarily supported by a generally sound financial profile and constructive 2026 guidance tied to Color Group strength and the natural color conversion opportunity. These positives are tempered by valuation (high P/E with modest yield), a only-moderate technical setup (still below the 200-day average), and near-term execution/margin and financing headwinds highlighted on the earnings call.
Positive Factors
Color Group Leadership
The Color Group's high and expanding EBITDA margin (~23.7%) and strong operating-profit growth indicate durable segment leadership and pricing power. Scale in food, pharma and specialty applications plus record new sales underpin repeatable order flow and margin resilience over multiple years.
Negative Factors
Margin & reporting inconsistencies
Gaps and inconsistencies in 2025 margin reporting undermine the reliability of trend analysis and complicate forecasting sustainable margins. For a business reliant on mix and commodity pass-throughs, opaque margin data raises execution risk when assessing long-term profit durability and ROIC improvement claims.
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Positive Factors
Negative Factors
Color Group Leadership
The Color Group's high and expanding EBITDA margin (~23.7%) and strong operating-profit growth indicate durable segment leadership and pricing power. Scale in food, pharma and specialty applications plus record new sales underpin repeatable order flow and margin resilience over multiple years.
Read all positive factors
Sensient Technologies (SXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.92B
Dividend Yield1.7%
Average Volume (3M)239.48K
Price to Earnings (P/E)29.5
Beta (1Y)0.69
Revenue Growth4.25%
EPS Growth56.51%
CountryUS
Employees4,014
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.72
Shares Outstanding42,506,700
10 Day Avg. Volume147,577
30 Day Avg. Volume239,480
Financial Highlights & Ratios
PEG Ratio3.97
Price to Book (P/B)3.32
Price to Sales (P/S)2.46
P/FCF Ratio103.29
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue2.94
Enterprise Value/Gross Profit8.78
Enterprise Value/Ebitda17.65
Forecast
1Y Price Target
$115.00Price Target Upside24.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.72
Revenue Forecast (FY)$1.74B
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 segm...
How the Company Makes Money
Sensient makes money primarily by formulating, manufacturing, and selling specialty ingredients and ingredient systems to business customers (B2B), with revenue recognized largely from product sales under customer purchase orders and supply arrang...
Sensient Technologies Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presents a constructive long-term growth story centered on a large natural color conversion opportunity, strong Color Group momentum, margin expansion historically, improved cash flow, and disciplined balance sheet targets. There are near-term headwinds—weather-related agricultural losses, tariff-driven supply disruptions in Asia Pacific, a modest revenue decline and Q4 profit pressure in Flavors & Extracts, and planned elevated investment that will pressure profit leverage and increase debt/interest expense in 2026. Management provided clear guidance and a multi-year investment plan to capture a material market opportunity and expects significant revenue acceleration and margin leverage in H2 2026 and beyond.Positive Updates
Full-Year Revenue and Profit Growth (2025)
Consolidated full-year local currency revenue grew 3% in 2025; adjusted EBITDA grew 10% (local currency) and adjusted EPS grew 15% (local currency). Consolidated adjusted EBITDA margin improved by ~100 basis points year-over-year.
Negative Updates
Flavors & Extracts Revenue and Q4 Profit Pressure
Flavors & Extracts reported a 1.3% local currency revenue decline for 2025, and in Q4 experienced a revenue decline of 2.4% and an adjusted local currency operating profit decline of 11.6%, driven in part by agriculture-related disruptions and timing/order effects.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Profit Growth (2025)
Consolidated full-year local currency revenue grew 3% in 2025; adjusted EBITDA grew 10% (local currency) and adjusted EPS grew 15% (local currency). Consolidated adjusted EBITDA margin improved by ~100 basis points year-over-year.
Read all positive updates
Company Guidance
Management guided 2026 consolidated local‑currency revenue to grow mid‑single‑digit to double‑digit (mid‑to‑high single‑digit in H1, high‑to‑double‑digit in H2), with the Color Group targeted at high‑single‑digit to double‑digit (management cited 10%+), Flavors & Extracts and Asia Pacific each expected to deliver mid‑single to high‑single‑digit revenue gains; consolidated local‑currency adjusted EBITDA is forecast mid‑single to double‑digit for the year (low‑single in H1, double‑digit in H2) and adjusted EPS mid‑single to high‑single‑digit (low‑single H1, high‑to‑double‑digit H2). 2026 capex is planned at $150–170 million (with $225–250 million of natural‑color conversion capex planned from 2025–2028), interest expense is expected around $36 million, the tax rate about 25%, net debt/credit‑adjusted EBITDA was 2.3x at 12/31/2025 and leverage is expected to finish in the high‑twos, natural‑color inventory will ramp through 2026–27 with conversion revenue increasing substantially in Q3–Q4, no share buybacks are planned, and management reiterated a $100 million synthetic‑color conversion opportunity (≈10x revenue multiple) and a goal to lift ROIC to the mid‑teens.Sensient Technologies Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.61B | 1.56B | 1.46B | 1.44B | 1.38B |
| Gross Profit | 539.30M | 507.09M | 460.30M | 489.11M | 454.75M |
| EBITDA | 268.23M | 251.91M | 212.84M | 249.22M | 222.08M |
| Net Income | 134.49M | 124.67M | 93.39M | 140.89M | 118.75M |
Balance Sheet | |||||
| Total Assets | 2.24B | 2.02B | 2.01B | 1.98B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 36.53M | 26.63M | 28.93M | 20.92M | 25.74M |
| Total Debt | 778.58M | 633.37M | 658.54M | 650.70M | 511.55M |
| Total Liabilities | 1.05B | 962.81M | 961.18M | 982.02M | 807.07M |
| Stockholders Equity | 1.19B | 1.06B | 1.05B | 999.60M | 938.42M |
Cash Flow | |||||
| Free Cash Flow | 38.42M | 97.94M | 81.83M | -67.25M | 84.43M |
| Operating Cash Flow | 127.83M | 157.15M | 169.70M | 12.07M | 145.22M |
| Investing Cash Flow | -92.68M | -59.21M | -87.62M | -98.45M | -35.56M |
| Financing Cash Flow | -35.03M | -81.55M | -82.00M | 86.18M | -107.76M |
Sensient Technologies Technical Analysis
Neutral
92.17
Price Trends
92.60
Negative
93.72
Negative
98.39
Negative
Market Momentum
-0.50
Negative
56.02
Neutral
92.70
Negative
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 92.17 is above the 20-day moving average (MA) of 88.34, below the 50-day MA of 92.60, and below the 200-day MA of 98.39, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 92.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.44B | 32.29 | 12.31% | 0.61% | 7.55% | 22.43% | |
73 Outperform | $1.81B | 16.33 | 9.01% | 2.19% | -4.49% | -100.80% | |
65 Neutral | $3.92B | 29.50 | 11.63% | 1.70% | 4.25% | 56.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $1.12B | 23.10 | 3.80% | 3.33% | 5.35% | -1.43% | |
59 Neutral | $3.18B | 34.90 | 3.48% | 3.48% | 1.03% | -24.57% | |
53 Neutral | $3.15B | 42.73 | 8.09% | 1.54% | -1.30% | -36.69% |
* Basic Materials Sector Average
SXT
Sensient Technologies
92.17
20.10
27.88%
BCPC
Balchem
170.02
11.36
7.16%
FUL
H.B. Fuller Company
57.78
4.85
9.17%
IOSP
Innospec
72.88
-15.08
-17.14%
AVNT
Avient
34.72
2.86
8.99%
SCL
Stepan Company
49.42
1.26
2.61%
Sensient Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Sensient Technologies Reports Mixed Q4 Results, Sees 2026 Growth
Neutral
Feb 13, 2026
On February 13, 2026, Sensient Technologies reported fourth-quarter 2025 revenue of $393.4 million, up 4.5% year on year, while operating income fell 9.1% to $38.2 million and reported EPS declined 15.5% to $0.60, even as adjusted EPS rose 6.2%. P...
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.