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Sensient (SXT)
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Sensient Technologies (SXT) AI Stock Analysis

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SXT

Sensient Technologies

(NYSE:SXT)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$99.00
â–²(2.26% Upside)
The overall stock score of 66 reflects a combination of solid financial performance and positive earnings call sentiment, offset by technical analysis indicators suggesting bearish momentum and a relatively high valuation. The company's strategic initiatives in natural color conversion present significant growth opportunities, but challenges in cash flow management and certain market segments need to be addressed.

Sensient Technologies (SXT) vs. SPDR S&P 500 ETF (SPY)

Sensient Technologies Business Overview & Revenue Model

Company DescriptionSensient Technologies Corporation (SXT) is a global leader in the manufacture and supply of color, flavor, and fragrance products. The company operates primarily in two segments: Colors and Flavors & Fragrances. Sensient's core products include natural and synthetic colorants, flavors for food and beverages, and fragrance compounds for personal care and household products. With a commitment to innovation and sustainability, Sensient serves a diverse range of industries, including food and beverage, cosmetics, and pharmaceuticals, leveraging advanced technologies to create unique solutions for its customers.
How the Company Makes MoneySensient Technologies generates revenue primarily through the sale of its color and flavor products across various sectors. The company has a diverse revenue model that includes direct sales to manufacturers and businesses in the food, beverage, cosmetics, and pharmaceutical industries. Key revenue streams include the sale of natural and synthetic colorants, proprietary flavors, and fragrance formulations. Sensient has established significant partnerships and collaborations with leading companies in its target markets, which enhance its distribution capabilities and expand its customer base. Additionally, the company's focus on innovation and the development of new products allows it to capitalize on emerging trends and demands, further contributing to its earnings.

Sensient Technologies Earnings Call Summary

Earnings Call Date:Oct 31, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with notable growth in the Color Group and positive full-year guidance. However, challenges were noted in the Flavors and Extracts Group, Sensient Agricultural Ingredients, and the Asia Pacific market. The company's strategic focus on natural color conversion and innovative product launches offers significant growth opportunities.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Delivered 14% local currency adjusted EBITDA growth and 18% local currency adjusted EPS growth. Local currency revenue grew 3.5% during the quarter.
Color Group Success
The Color Group achieved 7.9% local currency revenue growth and 23.8% local currency operating profit growth, with an adjusted EBITDA margin improvement to 24.7%.
Positive Outlook for Full-Year Guidance
Local currency adjusted EBITDA and EPS expected to grow at double-digit rates, with full-year local currency revenue guidance of mid-single-digit growth.
Innovative Product Launches
Strong new sales wins across food, pharmaceutical, and personal care product lines, driven by innovative product portfolio.
Commitment to Natural Color Conversion
Major opportunity with the conversion of synthetic colors to natural colors in the U.S., with significant investments in production capacity and supply chain.
Negative Updates
Flavors and Extracts Group Revenue Decline
Local currency revenue declined by 1.2% in the third quarter, although operating profit increased by 7.8%.
Challenges in Natural Ingredients Business
Sensient Agricultural Ingredients impacted by lower sales volumes and significantly higher crop costs, with expected improvements in Q4 2025.
Volume Headwinds in Asia Pacific
Flat local currency revenue and operating profit in Asia Pacific Group, with volume challenges expected to persist through the end of the year.
Trade and Tariff Uncertainty
Ongoing trade and tariff issues causing demand and volume disruptions, particularly in Asia Pacific.
Company Guidance
During the Sensient Technologies Corporation's 2025 Third Quarter Earnings Call, the company provided updated guidance for the year, indicating an increase in full-year expectations for local currency adjusted EBITDA and EPS growth to double digits, up from previous projections of high single-digit to double-digit growth. The Color Group reported a robust performance with a 7.9% increase in local currency revenue and a significant 23.8% growth in operating profit. The Flavors and Extracts Group experienced a slight revenue decline of 1.2% but achieved a 7.8% increase in operating profit. The company also highlighted a strategic focus on the conversion of synthetic colors to natural colors, which is expected to be the largest opportunity in its history, with a potential $100 million in synthetic color revenue poised for conversion to natural. Sensient is preparing for this transition with increased capital expenditure guidance of $100 million for 2025 and at least $150 million for 2026 to bolster its natural color capabilities. Despite some volume headwinds in the Asia Pacific Group, Sensient remains optimistic about its growth prospects and is well-positioned to capitalize on the ongoing shift towards natural colors in the industry.

Sensient Technologies Financial Statement Overview

Summary
Sensient Technologies demonstrates solid revenue growth and improved profitability, but faces challenges in cash flow management. The balance sheet shows reduced leverage, enhancing financial stability. Continued focus on cost management and cash flow improvement will be crucial for sustaining growth and profitability.
Income Statement
75
Positive
Sensient Technologies shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.24%. The gross profit margin is relatively stable, although it has decreased from previous years. Net profit margin has improved to 8.72% in the TTM, indicating better profitability. However, EBIT and EBITDA margins have slightly declined, suggesting potential cost pressures.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.32 in the TTM, indicating a stronger balance sheet with reduced leverage. Return on equity is at 10.08%, showing a decent return for shareholders. The equity ratio is stable, reflecting a balanced capital structure. However, the overall return on equity has decreased compared to previous years.
Cash Flow
60
Neutral
Sensient Technologies faces challenges in cash flow management, with a significant decline in free cash flow growth rate (-62.38% in TTM). The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The free cash flow to net income ratio is moderate at 0.46, suggesting limited cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.60B1.56B1.46B1.44B1.38B1.33B
Gross Profit535.37M507.09M460.30M489.11M454.75M425.54M
EBITDA271.97M251.91M212.84M249.22M222.08M202.30M
Net Income139.11M124.67M93.39M140.89M118.75M109.47M
Balance Sheet
Total Assets2.21B2.02B2.01B1.98B1.75B1.74B
Cash, Cash Equivalents and Short-Term Investments42.67M26.63M28.93M20.92M25.74M24.77M
Total Debt711.95M633.37M658.54M650.70M511.55M527.25M
Total Liabilities1.03B962.81M961.18M982.02M807.07M806.52M
Stockholders Equity1.18B1.06B1.05B999.60M938.42M934.34M
Cash Flow
Free Cash Flow23.74M97.94M81.83M-67.25M84.43M166.62M
Operating Cash Flow104.65M157.15M169.70M12.07M145.22M218.78M
Investing Cash Flow-83.01M-59.21M-87.62M-98.45M-35.56M-33.42M
Financing Cash Flow-20.30M-81.55M-82.00M86.18M-107.76M-184.15M

Sensient Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price96.81
Price Trends
50DMA
99.39
Negative
100DMA
104.03
Negative
200DMA
92.18
Positive
Market Momentum
MACD
-1.49
Negative
RSI
51.73
Neutral
STOCH
30.00
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 96.81 is above the 20-day moving average (MA) of 94.17, below the 50-day MA of 99.39, and above the 200-day MA of 92.18, indicating a neutral trend. The MACD of -1.49 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.92B33.2612.06%0.57%7.55%22.43%
66
Neutral
$3.88B27.9212.31%1.82%4.25%56.51%
63
Neutral
$2.86B24.225.09%3.45%3.28%1.69%
62
Neutral
$3.09B27.486.05%1.62%-1.30%-36.69%
62
Neutral
$956.90M21.443.67%3.49%5.35%-1.43%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
49
Neutral
$1.79B95.84-0.09%2.20%-4.49%-100.80%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SXT
Sensient Technologies
96.09
16.43
20.63%
BCPC
Balchem
152.71
-23.00
-13.09%
FUL
H.B. Fuller Company
57.75
-19.57
-25.31%
IOSP
Innospec
74.01
-44.07
-37.32%
AVNT
Avient
31.29
-18.77
-37.50%
SCL
Stepan Company
43.90
-33.31
-43.14%

Sensient Technologies Corporate Events

Sensient’s Earnings Call Highlights Growth and Challenges
Nov 1, 2025

Sensient Technologies Corporation’s recent earnings call highlighted a strong financial performance, with notable growth in the Color Group and positive full-year guidance. Despite challenges in the Flavors and Extracts Group, Sensient Agricultural Ingredients, and the Asia Pacific market, the company remains optimistic. The strategic focus on natural color conversion and innovative product launches presents significant growth opportunities.

Financial Disclosures
Sensient Technologies Reports Strong Q3 2025 Results
Positive
Oct 31, 2025

On October 31, 2025, Sensient Technologies Corporation reported its financial results for the third quarter ended September 30, 2025. The company achieved a 5.0% increase in reported revenue, reaching $412.1 million, and a 14.2% rise in operating income to $57.7 million compared to the same period in 2024. Earnings per share also grew by 13.0% to 87 cents. Despite a slight decline in the Flavors & Extracts Group’s revenue, the Color Group saw significant growth, driven by higher prices and strong volume growth in food and pharmaceutical product lines. The Asia Pacific Group also reported a slight revenue increase. The company’s strong performance is attributed to its focus on customer service and innovation, particularly in natural colors.

The most recent analyst rating on (SXT) stock is a Hold with a $104.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Sensient Technologies Announces Leadership Changes
Neutral
Sep 19, 2025

On September 15, 2025, Sensient Technologies announced the upcoming retirement of Michael C. Geraghty, President of the Color Group, effective March 31, 2026. Following his retirement, Geraghty will join the company’s Scientific Advisory Committee and advise the CEO. Steven B. Morris, currently President of the Flavors & Extracts Group, will succeed Geraghty, while Gregory T. Till will take over Morris’s role effective January 1, 2026. These leadership changes reflect Sensient’s strategic focus on leveraging experienced internal talent to maintain its market position and operational continuity.

The most recent analyst rating on (SXT) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.

Business Operations and StrategyM&A Transactions
Sensient Technologies Unveils Strategic Growth Focus
Positive
Aug 12, 2025

On August 12, 2025, Sensient Technologies Corporation released an updated investor presentation on its website, highlighting its strategic focus on growth in high-margin areas and innovation in natural colors. The company has been optimizing its portfolio by divesting low-margin businesses and investing in R&D and technology to enhance its offerings. This strategic shift aims to strengthen Sensient’s market position and drive long-term growth, benefiting stakeholders by aligning with consumer demand and addressing market gaps.

The most recent analyst rating on (SXT) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Sensient Technologies stock, see the SXT Stock Forecast page.

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.Date of analysis: Nov 04, 2025