Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $4.02B
• Dividend Yield: 1.73%
• Average Volume (3M): 261.80K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.61
• Revenue Growth: 6.30%
• EPS Growth: 41.01%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 0.86
• Shares Outstanding: 42,459,050
• 10 Day Avg. Volume: 257,086
• 30 Day Avg. Volume: 261,804
• PEG Ratio: 1.13
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.42
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 3.94
• 1Y Price Target: $94.00
• Price Target Upside: -0.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ―

Sensient Technologies scores a 74, reflecting robust financial health and strong technical indicators. The stock benefits from solid financial performance and positive earnings guidance. However, high valuation metrics and potential challenges in cost management and revenue growth moderate the outlook.

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 exhibits a strong financial position with stable margins and balanced leverage. The company's profitability is solid, with a net profit margin of 7.99% and efficient cash flow management. However, growth prospects appear moderate, and the ROE is low at 4.48%.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.56B	1.56B	1.46B	1.44B	1.38B	1.33B
	Gross Profit
512.32M	507.09M	460.30M	489.11M	454.66M	423.78M
	EBIT
195.70M	191.58M	155.02M	196.75M	170.03M	152.66M
	EBITDA
256.40M	251.91M	212.84M	249.22M	222.08M	202.30M
	Net Income Common Stockholders
128.19M	124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.57M	26.63M	28.93M	20.92M	25.74M	24.77M
	Total Assets
2.09B	2.02B	2.01B	1.98B	1.75B	1.74B
	Total Debt
701.84M	633.37M	658.54M	650.70M	511.55M	527.25M
	Net Debt
669.27M	606.75M	629.61M	629.78M	485.81M	502.48M
	Total Liabilities
997.63M	962.81M	961.18M	982.02M	807.07M	806.52M
	Stockholders Equity
1.10B	1.06B	1.05B	999.60M	938.42M	934.34M
Cash Flow		Free Cash Flow
68.00M	97.94M	81.83M	-67.25M	84.43M	166.62M
	Operating Cash Flow
133.04M	157.15M	169.70M	12.07M	145.22M	218.78M
	Investing Cash Flow
-69.56M	-59.21M	-87.62M	-98.45M	-35.56M	-33.42M
	Financing Cash Flow
-36.47M	-81.55M	-82.00M	86.18M	-107.76M	-184.15M

Sensient Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.57
• 50DMA: Positive
• 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 Positive. The current price of 94.57 is below the 20-day moving average (MA) of 94.92, above the 50-day MA of 89.07, and above the 200-day MA of 78.12, indicating a neutral trend. The MACD of 1.35 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.75 is Neutral, 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	76 Outperform	$2.85B	33.95	19.47%	0.53%	6.01%	12.38%
SXT	74 Outperform	$4.02B	31.32	11.87%	1.73%	6.30%	41.01%
KWR	71 Outperform	$2.06B	22.06	6.78%	1.69%	-5.72%	-19.82%
IOSP	63 Neutral	$2.11B	79.73	2.21%	1.99%	-7.91%	-81.73%
SSL	55 Neutral	$3.41B	―	-28.05%	2.00%	-4.31%	-1421.83%
IFF	53 Neutral	$19.63B	83.39	-6.08%	2.10%	0.68%	66.69%
Sector *	51 Neutral	$2.04B	-1.26	-21.09%	3.98%	2.91%	-30.49%

Sensient Technologies Corporate Events

Sensient Technologies Reports Strong Q1 2025 Results

On April 25, 2025, Sensient Technologies Corporation reported its financial results for the first quarter ended March 31, 2025. The company experienced a 2.0% increase in reported revenue to $392.3 million compared to the previous year, with local currency revenue rising by 4.1%. Operating income grew by 8.3% to $53.5 million, and earnings per share increased by 11.0% to 81 cents. The company’s strong performance was driven by solid volume growth and sales wins, particularly in natural colors, and it reaffirmed its 2025 guidance, indicating a positive outlook for stakeholders.