Sensient Technologies (SXT) AI Stock Analysis

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Sensient Technologies

(NYSE:SXT)

74Outperform

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 (SXT) vs. S&P 500 (SPY)

Market Cap

$4.00B

Dividend Yield1.74%

Average Volume (3M)488.04K

Price to Earnings (P/E)31.2

Beta (1Y)0.63

Revenue Growth6.30%

EPS Growth41.01%

CountryUS

Employees4,014

SectorBasic Materials

Sector Strength60

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.86

Shares Outstanding42,459,050

10 Day Avg. Volume324,281

30 Day Avg. Volume488,041

Financial Highlights & Ratios

PEG Ratio14.11

Price to Book (P/B)1.93K

Price to Sales (P/S)0.00

P/FCF Ratio59.71

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue0.70

Enterprise Value/Gross Profit10.66

Enterprise Value/Ebitda4.48

Forecast

1Y Price Target

$93.00

Price Target Upside-1.36% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Sensient Technologies Business Overview & Revenue Model

Company DescriptionSensient 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 MoneySensient 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

Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.17B	1.56B	1.46B	1.44B	1.38B	1.33B
	Gross Profit
380.94M	507.09M	460.30M	489.11M	454.66M	423.75M
	EBIT
142.23M	191.58M	155.02M	196.75M	170.03M	152.66M
	EBITDA
241.25M	251.91M	212.84M	249.22M	222.08M	202.30M
	Net Income Common Stockholders
93.76M	124.67M	93.39M	140.89M	118.75M	109.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.42M	26.63M	28.93M	20.92M	25.74M	24.77M
	Total Assets
2.01B	2.02B	2.01B	1.98B	1.75B	1.74B
	Total Debt
662.95M	633.37M	658.54M	650.70M	511.55M	527.25M
	Net Debt
637.53M	606.75M	629.61M	629.78M	485.81M	502.48M
	Total Liabilities
941.75M	962.81M	961.18M	982.02M	807.07M	806.52M
	Stockholders Equity
1.06B	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 Price94.28

Price Trends

50DMA

80.06

Positive

100DMA

76.03

Positive

200DMA

75.74

Positive

Market Momentum

MACD

4.51

Positive

RSI

68.93

Neutral

STOCH

41.66

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 94.28 is above the 20-day moving average (MA) of 90.21, above the 50-day MA of 80.06, and above the 200-day MA of 75.74, indicating a bullish trend. The MACD of 4.51 indicates Positive momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 41.66 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

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	74 Outperform	$4.00B	31.21	11.87%	1.74%	6.30%	41.01%
HWKN	73 Outperform	$2.55B	30.45	19.47%	0.57%	6.01%	12.38%
KWR	68 Neutral	$1.89B	20.27	6.78%	1.79%	-5.72%	-19.82%
IOSP	66 Neutral	$2.22B	84.06	2.21%	1.74%	-7.91%	-81.73%
IFF	56 Neutral	$19.88B	83.39	-6.08%	2.06%	0.68%	66.69%
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.60%
SSL	47 Neutral	$2.44B	―	-28.05%	2.00%	-4.31%	-1421.83%

* Basic Materials Sector Average

Performance Comparison

SXT

Sensient Technologies

94.28

20.19

27.25%

HWKN

Hawkins

122.68

34.93

39.81%

IOSP

Innospec

88.99

-39.22

-30.59%

IFF

International Flavors & Fragrances

77.72

-19.36

-19.94%

KWR

Quaker Chemical

106.86

-86.60

-44.76%

SSL

Sasol

3.86

-3.68

-48.81%

Sensient Technologies Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q1-2025)

% Change Since: 18.15%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong financial performance with significant growth in key segments and innovative product launches. However, challenges such as tariff impacts and increased costs in the Natural Ingredients business were noted. The overall outlook remains optimistic, focusing on growth opportunities and strategic investments.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Reported 4% local currency revenue growth, 10% local currency adjusted EBITDA growth, and 11% local currency adjusted EPS growth for the first quarter of 2025.

Color Group Achievement

Color Group delivered 8.2% local currency revenue growth and 13.5% local currency operating profit growth. EBITDA margin improved by 120 basis points to 24.4%.

Innovative Product Launches

Introduced Marine Blue Capri and Sienna Fortis, two significant natural color innovations, marking major technological breakthroughs for the company.

Flavors & Extracts Group Growth

Achieved 1.7% local currency revenue growth and 6.2% local currency operating profit growth. Adjusted EBITDA margin increased by 70 basis points.

Asia Pacific Group Performance

Achieved 4.8% local currency revenue growth and 7% local currency operating profit growth, with an adjusted EBITDA margin increase of 50 basis points.

Negative Updates

Tariff Impact

U.S. implementation of new tariffs expected to impact company costs by $10 million annually, creating trade and tariff uncertainty.

Natural Ingredients Sales Decline

Natural ingredients product line saw a decrease in sales due to challenging prior year comparables and lower demand. Lower volumes and higher costs are expected to persist.

Capital Expenditures Increase

Raised capital expenditure expectations to between $80 million and $90 million, up from $70 million to $80 million, due to increased investment in natural colors capabilities.

Company Guidance

During the Sensient Technologies Corporation 2025 First Quarter Earnings Conference Call, guidance was provided with several key metrics highlighted. The company reported a 4% local currency revenue growth, 10% local currency adjusted EBITDA growth, and 11% local currency adjusted EPS growth for the quarter. Sensient expects consolidated annual local currency revenue to grow at a mid-single-digit rate, leading to mid to high single-digit local currency adjusted EBITDA growth and high single-digit to double-digit local currency adjusted EPS growth for the year. The Color Group delivered an 8.2% local currency revenue growth and 13.5% local currency operating profit growth, with an adjusted EBITDA margin increase of 120 basis points to 24.4%. Meanwhile, the Flavors & Extracts Group saw a 1.7% local currency revenue growth and 6.2% local currency operating profit growth, with its adjusted EBITDA margin improving by 70 basis points to 16.9%. The company also highlighted a $10 million expected annual impact from tariffs, which it plans to mitigate through pricing adjustments. Additionally, Sensient has increased its capital expenditure guidance to $80 million-$90 million, up from the previous $70 million-$80 million, due to the accelerated natural color conversion activities.

Sensient Technologies Corporate Events

Financial Disclosures

Sensient Technologies Reports Strong Q1 2025 Results

Positive

Apr 25, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.