Sensient Technologies Corp. (SXT)
NYSE:SXT
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Sensient Technologies
(NYSE:SXT)
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Rating:67Neutral
Price Target:
$135.00
â–²(34.65% Upside)
Action:ReiteratedDate:04/28/26
The score is led by improving operating momentum and upgraded 2026 guidance from the latest earnings call, supported by generally solid profitability and a manageable balance sheet. The main constraint is weak recent cash conversion/free cash flow (and higher capex/working-capital needs), while technicals show a strong uptrend but with overbought signals that raise near-term downside risk.
Positive Factors
Diversified specialty ingredients B2B model
Sensient's core B2B model selling colors, flavors and functional ingredients creates durable, repeatable revenue tied to customer formulations and new-product pipelines. Long-term technical support, regulatory know-how and custom blends raise switching costs and support stable margins across cycles.
Negative Factors
Weak cash conversion and low free cash flow
Subpar cash conversion limits the company's ability to self-fund growth and absorb shocks. With operating cash materially below net income and depressed free cash flow, Sensient may need to rely on external funding or draw on leverage to support capex, dividends and natural-color buildouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified specialty ingredients B2B model
Sensient's core B2B model selling colors, flavors and functional ingredients creates durable, repeatable revenue tied to customer formulations and new-product pipelines. Long-term technical support, regulatory know-how and custom blends raise switching costs and support stable margins across cycles.
Read all positive factors
Sensient Technologies (SXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.30B
Dividend Yield1.7%
Average Volume (3M)239.48K
Price to Earnings (P/E)20.7
Beta (1Y)0.75
Revenue Growth5.80%
EPS Growth12.24%
CountryUS
Employees4,014
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.04
Shares Outstanding42,551,315
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 Cap1.12
Enterprise Value/Revenue3.60
Enterprise Value/Gross Profit10.65
Enterprise Value/Ebitda21.16
Forecast
1Y Price Target
$143.00Price Target Upside42.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.84
Revenue Forecast (FY)$1.78B
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:Apr 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 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
Positive
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
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 1.61B | 1.56B | 1.46B | 1.44B | 1.38B |
| Gross Profit | 560.21M | 539.30M | 507.09M | 460.30M | 489.11M | 454.75M |
| EBITDA | 281.89M | 268.23M | 251.91M | 212.84M | 249.22M | 222.08M |
| Net Income | 144.20M | 134.49M | 124.67M | 93.39M | 140.89M | 118.75M |
Balance Sheet | ||||||
| Total Assets | 2.29B | 2.24B | 2.02B | 2.01B | 1.98B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 38.54M | 36.53M | 26.63M | 28.93M | 20.92M | 25.74M |
| Total Debt | 767.79M | 778.58M | 633.37M | 658.54M | 650.70M | 511.55M |
| Total Liabilities | 1.07B | 1.05B | 962.81M | 961.18M | 982.02M | 807.07M |
| Stockholders Equity | 1.22B | 1.19B | 1.06B | 1.05B | 999.60M | 938.42M |
Cash Flow | ||||||
| Free Cash Flow | 21.89M | 38.42M | 97.94M | 81.83M | -67.25M | 84.43M |
| Operating Cash Flow | 123.19M | 127.83M | 157.15M | 169.70M | 12.07M | 145.22M |
| Investing Cash Flow | -98.32M | -92.68M | -59.21M | -87.62M | -98.45M | -35.56M |
| Financing Cash Flow | -28.60M | -35.03M | -81.55M | -82.00M | 86.18M | -107.76M |
Sensient Technologies Technical Analysis
Positive
100.26
Price Trends
92.59
Positive
93.80
Positive
98.27
Positive
Market Momentum
1.40
Negative
69.15
Neutral
74.31
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 above the 20-day moving average (MA) of 90.49, above the 50-day MA of 92.59, and above the 200-day MA of 98.27, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.61B | 32.29 | 12.31% | 0.61% | 8.75% | 20.88% | |
73 Outperform | $1.93B | 16.33 | 9.01% | 2.19% | -3.65% | 227.47% | |
67 Neutral | $5.30B | 20.69 | 9.91% | 1.70% | 5.80% | 12.24% | |
64 Neutral | $1.19B | -6.91 | 3.80% | 3.33% | 6.96% | -7.05% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.41B | 34.90 | 3.48% | 3.48% | 0.61% | -51.82% | |
56 Neutral | $3.42B | 42.73 | 8.09% | 1.54% | -2.57% | 43.21% |
* Basic Materials Sector Average
SXT
Sensient Technologies
123.07
30.29
32.65%
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177.28
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FUL
H.B. Fuller Company
61.89
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IOSP
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76.64
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-12.89%
AVNT
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36.87
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SCL
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49.33
-0.69
-1.37%
Sensient Technologies Corporate Events
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...
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.