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Sensata
(NYSE:ST)
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Rating:64Neutral
Price Target:
$44.00
▲(4.34% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid underlying financial performance (strong and improving free cash flow and stable operating margins) and a favorable earnings-call outlook (growth, margin strength, and deleveraging). Offsetting these positives are a demanding valuation (very high P/E) and only moderate technical strength, which together cap upside in the overall score.
Positive Factors
OEM platform-based recurring revenue
Sensata's engineered components are designed into OEM and Tier 1 platforms, where qualified parts ship repeatedly over production lives. This platform-based model can create recurring production-linked revenue, deepen customer integration, and support durable aftermarket and replacement opportunities as programs scale.
Negative Factors
Meaningful leverage constraint
Leverage remains a material constraint, with debt-to-equity around 1.0–1.4x historically. Reliance on debt financing can limit flexibility to absorb weaker demand, fund new programs, or allocate capital, especially while returns on equity remain subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM platform-based recurring revenue
Sensata's engineered components are designed into OEM and Tier 1 platforms, where qualified parts ship repeatedly over production lives. This platform-based model can create recurring production-linked revenue, deepen customer integration, and support durable aftermarket and replacement opportunities as programs scale.
Read all positive factors
Sensata (ST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.10B
Dividend Yield1.15%
Average Volume (3M)1.33M
Price to Earnings (P/E)66.0
Beta (1Y)1.53
Revenue Growth0.32%
EPS Growth-18.53%
CountryUS
Employees16,700
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.63
Shares Outstanding145,535,860
10 Day Avg. Volume1,288,869
30 Day Avg. Volume1,330,754
Financial Highlights & Ratios
PEG Ratio-2.11
Price to Book (P/B)1.75
Price to Sales (P/S)1.32
P/FCF Ratio9.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$53.38Price Target Upside26.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.76
Revenue Forecast (FY)$3.87B
Sensata Business Overview & Revenue Model
Company Description
Sensata Technologies Holding plc is a global enterprise specializing in the design, production, and distribution of sensing devices, integrated sensor solutions, control systems, and associated technologies. Its market reach extends across the Ame...
How the Company Makes Money
Sensata makes money primarily by selling engineered components—most commonly sensors, switches, and circuit protection devices—into high-volume OEM and industrial applications under long-term platform wins. Revenue is largely generated from: (1) A...
Sensata Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial trajectory: revenue, margins, EPS, free cash flow and deleveraging all improved with broad-based segment growth (notably aerospace/defense and automotive outgrowth). Management highlighted accelerating momentum, structural cash conversion gains, and a growing data center opportunity backed by multiple hyperscaler specifications. Near-term challenges include softness and mix variability in China, a deliberate reinvestment that compressed Industrials margin, typical seasonal Q3 headwinds, and uncertainty around the timing and scale of data center revenue. Overall, the positives (sustained growth, margin expansion, strong cash generation and rapid deleveraging) materially outweigh the limited near-term headwinds.Positive Updates
Revenue Growth Above Expectations
Q2 revenue of $991 million, up $47 million or 5% year-over-year (4% organic), representing the fourth consecutive quarter of organic growth and accelerating year-over-year growth across all three segments.
Negative Updates
Softness and Variability in China Automotive Market
China domestic auto market softened in the quarter and Sensata did not outgrow production in China this quarter; production and OEM share shifts created mix headwinds despite >90% of new business orders being with local OEMs.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Expectations
Q2 revenue of $991 million, up $47 million or 5% year-over-year (4% organic), representing the fourth consecutive quarter of organic growth and accelerating year-over-year growth across all three segments.
Read all positive updates
Company Guidance
Sensata guided third-quarter 2026 revenue of $957–$987 million, adjusted operating income of $186–$193 million (adjusted operating margin 19.4%–19.6%), adjusted net income of $137–$142 million and adjusted EPS of $0.93–$0.97; the guidance includes approximately $10 million of tariff costs and associated pass-through revenues based on trade policies as of July 28 (and excludes any potential IEEPA tariff refunds), assumes capex will normalize toward prior-year run rates in H2 after year-to-date capex just over 2% of revenue, and was issued with the company holding $403 million of cash, $650 million of undrawn revolver capacity, net leverage of 2.4x trailing-12-month adjusted EBITDA (gross leverage 2.9x; gross indebtedness ≈ $2.5 billion), while Q2 results to compare were $991 million revenue, $193 million adjusted operating income, $0.98 adjusted EPS and $186 million of free cash flow.Sensata Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.78B | 3.70B | 3.94B | 4.07B | 4.08B | 3.81B |
| Gross Profit | 1.07B | 1.00B | 989.00M | 1.08B | 1.20B | 1.11B |
| EBITDA | 736.52M | 528.80M | 456.83M | 506.99M | 856.49M | 852.30M |
| Net Income | 89.88M | 31.30M | 128.48M | -3.91M | 310.69M | 363.58M |
Balance Sheet | ||||||
| Total Assets | 6.59B | 6.75B | 7.14B | 7.68B | 8.76B | 8.61B |
| Cash, Cash Equivalents and Short-Term Investments | 403.30M | 573.00M | 593.67M | 508.10M | 1.23B | 1.71B |
| Total Debt | 2.44B | 2.92B | 3.26B | 3.44B | 4.28B | 4.30B |
| Total Liabilities | 3.63B | 3.97B | 4.25B | 4.68B | 5.65B | 5.52B |
| Stockholders Equity | 2.96B | 2.79B | 2.89B | 3.00B | 3.11B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 571.36M | 490.30M | 392.99M | 272.07M | 310.53M | 409.75M |
| Operating Cash Flow | 683.86M | 621.50M | 551.55M | 456.68M | 460.59M | 554.15M |
| Investing Cash Flow | -97.75M | -95.80M | -98.55M | -165.00M | -590.57M | -882.09M |
| Financing Cash Flow | -825.42M | -550.60M | -363.41M | -1.02B | -353.46M | 174.92M |
Sensata Technical Analysis
Neutral
42.17
Price Trends
43.78
Negative
45.76
Negative
40.89
Positive
Market Momentum
-0.48
Negative
46.65
Neutral
52.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ST, the sentiment is Neutral. The current price of 42.17 is above the 20-day moving average (MA) of 42.00, below the 50-day MA of 43.78, and above the 200-day MA of 40.89, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ST.
Sensata Risk Analysis
Sensata disclosed 32 risk factors in its most recent earnings report. Sensata reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sensata Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.83B | 14.51 | 16.52% | ― | -5.69% | 2.02% | |
73 Outperform | $1.69B | 24.64 | 12.52% | 0.27% | 8.48% | 13.14% | |
65 Neutral | $10.89B | -1,092.76 | -0.32% | 0.71% | 15.44% | -108.08% | |
64 Neutral | $6.10B | 66.00 | 3.18% | 1.15% | 0.32% | -18.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $955.07M | 239.43 | 1.08% | ― | 11.28% | ― | |
51 Neutral | $511.15M | -13.93 | -5.46% | 1.39% | 1.36% | 32.69% |
* Technology Sector Average
ST
Sensata
41.91
11.69
38.68%
CTS
CTS
59.18
19.71
49.93%
ITRI
Itron
87.39
-35.03
-28.61%
LFUS
Littelfuse
428.76
173.07
67.69%
MEI
Methode Electronics
14.34
6.92
93.31%
VPG
Vishay Precision Group
71.70
38.97
119.07%
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.