Sensient Technologies (SXT) AI Stock Analysis

• Market Cap: $3.98B
• Dividend Yield: 1.75%
• Average Volume (3M): 529.81K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.68
• Revenue Growth: 6.30%
• EPS Growth: 41.01%
• Country: US
• Employees: 4,014
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Chemicals - Specialty
• EPS (TTM): 3.02
• Shares Outstanding: 42,437,620
• 10 Day Avg. Volume: 746,811
• 30 Day Avg. Volume: 529,810
• PEG Ratio: 0.76
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $93.00
• Price Target Upside: -0.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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 is a global manufacturer and marketer of colors, flavors, and other specialty ingredients. The company operates primarily in the food and beverage, personal care, and pharmaceutical sectors. Sensient is renowned for its innovative and customized solutions, offering a broad range of products that enhance the sensory experience of consumer goods. Its core products include natural and synthetic colors, flavor systems, extracts, and essential oils.

How the Company Makes Money

Sensient Technologies makes money by supplying specialty ingredients to a diverse range of industries, primarily focusing on food and beverage, personal care, and pharmaceuticals. The company's revenue model is based on the sale of its color, flavor, and fragrance products, which are critical components in product formulation for its clients. Sensient's key revenue streams include direct sales to manufacturers and processors that integrate these ingredients into their final products. The company also benefits from its strong emphasis on innovation and R&D, enabling the development of customized solutions that meet specific client needs, often leading to long-term partnerships and recurring sales. Additionally, Sensient's global reach allows it to tap into emerging markets and capitalize on international growth opportunities.

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
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	423.75M
	EBIT
191.58M	155.02M	196.75M	170.03M	152.66M
	EBITDA
251.91M	212.84M	249.22M	222.08M	202.30M
	Net Income Common Stockholders
124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.63M	28.93M	20.92M	25.74M	24.77M
	Total Assets
2.02B	2.01B	1.98B	1.75B	1.74B
	Total Debt
633.37M	658.54M	650.70M	511.55M	527.25M
	Net Debt
606.75M	629.61M	629.78M	485.81M	502.48M
	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: 93.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 93.73 is above the 20-day moving average (MA) of 80.12, above the 50-day MA of 75.44, and above the 200-day MA of 75.26, indicating a bullish trend. The MACD of 5.30 indicates Negative momentum. The RSI at 78.12 is Negative, neither overbought nor oversold. The STOCH value of 93.82 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	77 Outperform	$2.61B	31.78	19.24%	0.56%	3.01%	12.36%
SXT	74 Outperform	$3.98B	31.05	11.87%	1.75%	6.30%	41.01%
KWR	68 Neutral	$1.87B	16.29	6.78%	1.80%	-5.82%	3.75%
IOSP	67 Neutral	$2.32B	65.09	3.02%	1.72%	-5.31%	-74.42%
IFF	53 Neutral	$20.22B	83.29	1.71%	2.02%	0.04%	―
Sector *	49 Neutral	$1.95B	-1.37	-21.43%	3.74%	0.84%	-29.84%
SSL	47 Neutral	$2.24B	―	-28.05%	2.00%	-4.31%	-1421.83%

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.

Spark’s Take on SXT Stock

According to Spark, TipRanks’ AI Analyst, SXT is a Outperform.

Sensient Technologies demonstrates solid financial performance with robust revenue and EBITDA growth, supported by strong technical indicators. The company’s strategic initiatives and positive earnings guidance further bolster its outlook. While valuation metrics suggest a fair price, high debt levels and challenges in natural color conversion remain potential risks. Overall, Sensient Technologies presents a stable investment opportunity with room for growth.

To see Spark’s full report on SXT stock, click here.

Sensient Technologies Reports Strong Q4 Financial Performance

Sensient Technologies reported significant improvements in their financial performance for the fourth quarter ending December 31, 2024. Revenue increased by 7.8% to $376.4 million, and operating income surged to $42 million from $8.1 million in the previous year, driven by higher sales volumes, particularly in natural colors. Earnings per share rose to 71 cents from a loss of 14 cents in the previous year, highlighting the company’s strong market position and successful execution of its Portfolio Optimization Plan, which reduced costs significantly.