Sensata (ST) AI Stock Analysis

• Market Cap: $4.52B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.37
• Revenue Growth: -7.23%
• EPS Growth: 1278.91%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.87
• Shares Outstanding: 145,639,000
• 10 Day Avg. Volume: 1,332,030
• 30 Day Avg. Volume: 1,346,820
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 10.49
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 7.08
• Enterprise Value/Ebitda: 16.41
• 1Y Price Target: $36.10
• Price Target Upside: 16.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 63 Neutral
• Price Target: $34.00 ▲(9.50% Upside)

Sensata's overall stock score reflects a mixed financial performance with strong cash flow but declining revenue and profit margins. Technical analysis shows a neutral trend, while a high P/E ratio suggests overvaluation. The earnings call provided positive insights into strategic growth, but challenges in certain segments remain.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing Sensata to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting long-term stability.

Sensing Solutions Growth

Growth in Sensing Solutions indicates successful market penetration and product adoption, positioning Sensata to capitalize on industrial and aerospace demand, supporting future revenue streams.

China Market Expansion

Expansion in China, especially in the new energy vehicle market, taps into a high-growth region, enhancing Sensata's competitive position and potential for long-term revenue growth.

Negative Factors

Revenue Decline

Revenue decline suggests challenges in maintaining top-line growth, which could impact profitability and market competitiveness if not addressed through strategic initiatives.

Performance Sensing Challenges

Decline in Performance Sensing revenue indicates potential market or product challenges, which could affect Sensata's ability to sustain growth in key segments without strategic adjustments.

HVOR Market Weakness

Weakness in HVOR markets reflects broader industry challenges, potentially impacting Sensata's revenue and necessitating diversification or innovation to mitigate risks.

Sensata Business Overview & Revenue Model

Company Description

Sensata Technologies Holding plc develops, manufactures, and sells sensors, sensor-based solutions, controls, and other products in the Americas, Europe, Asia, and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment develops and manufactures sensors, high-voltage contactors, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain (engine/transmission), and exhaust management. This segment serves customers in the automotive, and heavy vehicle and off-road industries. The Sensing Solutions segment develops and manufactures application-specific sensor and electrical protection products primarily serving the industrial and aerospace markets. Its products include pressure and position sensors, motor and compressor protectors, high-voltage contactors, solid state relays, bimetal electromechanical controls, power inverters, charge controllers, battery management systems, operator controls, and Internet of Things solutions. The company was founded in 1916 and is headquartered in Attleboro, Massachusetts.

How the Company Makes Money

Sensata generates revenue primarily through the sale of its sensor products and solutions to a diverse customer base across multiple sectors. The company's key revenue streams include automotive sensors, which are essential for vehicle safety, efficiency, and performance; industrial sensors that monitor and control processes in various applications; and aerospace sensors that ensure safety and compliance in aviation. Sensata also benefits from long-term partnerships with major automotive manufacturers and industrial companies, providing them with customized solutions that meet specific needs. Additionally, the company's focus on innovation and the development of advanced technologies, such as electric vehicle sensors and connectivity solutions, positions it to capitalize on emerging trends and market demands, contributing to its overall earnings.

Sensata Financial Statement Overview

Summary

Sensata's financial performance is mixed. Strong cash flows are a positive, but revenue and profit margins are under pressure. The balance sheet shows moderate leverage and stable equity.

Income Statement

Sensata's income statement reveals a mixed performance. The Gross Profit Margin stands at a solid 27.64% for TTM, although it has declined from previous years. The Net Profit Margin is a low 2.97% for TTM, impacted by reduced net income. Revenue has decreased by 4.76% in TTM compared to 2024, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins are 11.19% and 9.71% respectively in TTM, showing operational profitability but declining from previous periods.

Balance Sheet

Sensata's balance sheet shows moderate stability. The Debt-to-Equity ratio is 1.11, indicating a leverage level that is reasonable but higher than in the past. Return on Equity (ROE) is 3.87% for TTM, reflecting diminished profitability on shareholder investments. The Equity Ratio is 39.62%, suggesting a stable equity base but slightly lower than desired for stronger financial resilience.

Cash Flow

The cash flow statement highlights strengths in cash management. Free Cash Flow has grown by 11.98% in TTM, demonstrating good cash generation after capital expenditures. The Operating Cash Flow to Net Income ratio is 5.13, indicating strong cash flow relative to net income. The Free Cash Flow to Net Income ratio is 3.95, further underscoring efficient cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.75B	3.94B	4.07B	4.08B	3.81B	3.03B
Gross Profit	981.90M	989.00M	1.08B	1.20B	1.11B	801.30M
EBITDA	423.52M	456.83M	506.99M	856.49M	852.30M	592.63M
Net Income	111.34M	128.48M	-3.91M	310.69M	363.58M	164.29M
Balance Sheet
Total Assets	7.27B	7.14B	7.68B	8.76B	8.61B	7.84B
Cash, Cash Equivalents and Short-Term Investments	661.78M	593.67M	508.10M	1.23B	1.71B	1.86B
Total Debt	3.20B	3.26B	3.44B	4.28B	4.30B	4.05B
Total Liabilities	4.39B	4.25B	4.68B	5.65B	5.52B	5.14B
Stockholders Equity	2.88B	2.89B	3.00B	3.11B	3.09B	2.71B
Cash Flow
Free Cash Flow	435.38M	392.99M	272.07M	310.53M	409.75M	453.06M
Operating Cash Flow	565.09M	551.55M	456.68M	460.59M	554.15M	559.77M
Investing Cash Flow	31.84M	-98.55M	-165.00M	-590.57M	-882.09M	-182.09M
Financing Cash Flow	-968.06M	-363.41M	-1.02B	-353.46M	174.92M	710.18M

Sensata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.05
• 50DMA: Negative
• 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 ST, the sentiment is Positive. The current price of 31.05 is below the 20-day moving average (MA) of 31.10, below the 50-day MA of 31.43, and above the 200-day MA of 27.86, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ST.

Sensata Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	80 Outperform	$6.08B	24.42	11.58%	―	5.87%	20.66%
ESE	76 Outperform	$5.38B	46.94	9.01%	0.15%	10.65%	15.22%
OSIS	74 Outperform	$4.23B	28.89	16.49%	―	11.33%	18.47%
ITRI	73 Outperform	$5.73B	21.43	18.92%	―	3.90%	44.95%
TTMI	66 Neutral	$6.11B	66.41	5.89%	―	14.24%	424.78%
ST	63 Neutral	$4.52B	40.94	3.78%	1.55%	-7.23%	1278.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sensata Corporate Events

Sensata Appoints Andrew Lynch as New CFO

On July 21, 2025, Sensata Technologies announced the appointment of Andrew Lynch as Executive Vice President and Chief Financial Officer. Lynch, who has been with the company since 2009, will oversee global financial activities. His appointment is expected to strengthen Sensata’s financial leadership, given his extensive experience within the company, including roles in investor relations and regional financial management.

Sensata Approves Key Resolutions at Annual Meeting

On June 10, 2025, Sensata Technologies held its Annual General Meeting of Shareholders, where 93.42% of the total shares entitled to vote were represented. Key resolutions approved included the election of directors, executive and director compensation, the appointment of Deloitte & Touche LLP as auditors, and authorizations related to equity securities issuance and share repurchase. These approvals are set to impact the company’s governance and financial strategies, reinforcing its operational and market positioning.