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Sensient Technologies
(NYSE:SXT)
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Rating:69Neutral
Price Target:
$137.00
â–²(8.05% Upside)
Action:Reiterated
Date:07/28/26
The score is supported by positive operating momentum and upgraded guidance, alongside a strong price uptrend above key moving averages. The main offsets are weak recent free-cash-flow generation/cash conversion and a relatively high P/E with only a modest dividend yield.
Positive Factors
Natural color conversion traction
Sensient has begun converting customers to natural colors at scale, invoicing ~$25M in Q2 (and ~$45M cumulative YTD). This establishes a multi‑year revenue runway tied to a structural shift toward natural ingredients, supporting durable top‑line growth as conversions and pipeline mature.
Negative Factors
Weak free cash flow conversion
Near‑breakeven free cash flow and low cash conversion reduce financial flexibility to fund capex, acquisitions or shareholder returns. If working capital and capex remain elevated for natural color scale‑up, persistent weak FCF could constrain strategic options and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Natural color conversion traction
Sensient has begun converting customers to natural colors at scale, invoicing ~$25M in Q2 (and ~$45M cumulative YTD). This establishes a multi‑year revenue runway tied to a structural shift toward natural ingredients, supporting durable top‑line growth as conversions and pipeline mature.
Read all positive factors
Sensient Technologies (SXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.26B
Dividend Yield1.33%
Average Volume (3M)239.48K
Price to Earnings (P/E)33.2
Beta (1Y)0.71
Revenue Growth8.12%
EPS Growth16.87%
CountryUS
Employees4,070
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.73
Shares Outstanding42,568,960
10 Day Avg. Volume147,577
30 Day Avg. Volume239,480
Financial Highlights & Ratios
PEG Ratio3.98
Price to Book (P/B)3.32
Price to Sales (P/S)2.46
P/FCF Ratio103.29
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
$140.00Price Target Upside10.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.92
Revenue Forecast (FY)$1.78B
Sensient Technologies Business Overview & Revenue Model
Company Description
Sensient Technologies Corporation, operating alongside its various subsidiaries, specializes in the creation, production, and global distribution of colors, flavorings, and an array of other specialized ingredients. The company's extensive market ...
How the Company Makes Money
Sensient makes money primarily by selling specialty ingredients and ingredient systems to manufacturers (B2B), generating revenue from product shipments under customer purchase orders and supply agreements. Its key revenue streams are organized ar...
Sensient Technologies Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call communicates robust execution and materially upgraded results driven by the Color Group and accelerating natural color conversions, with clear progress toward a $1B natural color opportunity. Positive operating momentum, better-than-expected wins and upgraded full-year guidance are offset by one-time tariff benefits, rising interest expense, increased working capital requirements, and supply-chain/raw-material risks associated with scaling natural color capacity. Overall, the company portrays confidence in its strategy and financial position while flagging near-term leverage and margin variability risks.Positive Updates
Strong Consolidated Q2 Performance
Revenue $462.1M in Q2 2026 vs $414.2M prior year; 10% local currency revenue growth, 21% local currency adjusted EBITDA growth, and 26% local currency adjusted EPS growth in Q2.
Negative Updates
One-Time Tariff Refunds Inflated Q2 Results
Company received approx $5M of tariff refunds in Q2 (mostly in Color Group), which provided an estimated $0.09 EPS benefit and contributed ~$4.3M to operating profit (about 200 bps of Color Group margin). Management does not expect further material refunds.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Q2 Performance
Revenue $462.1M in Q2 2026 vs $414.2M prior year; 10% local currency revenue growth, 21% local currency adjusted EBITDA growth, and 26% local currency adjusted EPS growth in Q2.
Read all positive updates
Company Guidance
Sensient updated 2026 guidance: consolidated local‑currency revenue is expected to rise high‑single to low‑double digits, with local‑currency adjusted EBITDA and adjusted EPS growth now forecast in the mid‑ to high‑teens; by business, the Color Group is expected to deliver high‑teens revenue growth (it invoiced ~$25M of natural‑color conversion revenue in Q2, adding to ~$20M cumulative through Q1) with Q3 Color EBITDA margin expected roughly in line with last year’s Q3 (24.7%) and Color and Asia Pacific margins targeted in the mid‑20s (Q2 Color adj. EBITDA margin 28.3% including ~$4.3M tariff refunds, excl. refund 26.3%; Asia Pacific Q2 adj. EBITDA margin 24.4%); Flavors & Extracts is guided to mid‑single‑digit revenue growth with high‑teens EBITDA margins (Q2 margin 18.1%); consolidated capex remains $150–$170M for 2026 (likely toward $170M) with ~ $250M of natural‑color capital planned over the next few years, working capital expected to increase to support conversions, net debt / credit‑adjusted EBITDA was 2.3x at 6/30/26 (expected to enter mid‑to‑upper‑2s later in the year), Q3/Q4 interest expense are expected to be ~ $9M and ~$9.5M, adjusted tax rate ~25%, currency impact on EPS immaterial in H2, and no material additional tariff refunds or near‑term share buybacks are expected.Sensient Technologies Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.70B | 1.61B | 1.56B | 1.46B | 1.44B | 1.38B |
| Gross Profit | 590.18M | 539.30M | 507.09M | 460.30M | 489.11M | 454.75M |
| EBITDA | 270.08M | 268.23M | 251.91M | 212.84M | 249.22M | 222.08M |
| Net Income | 157.97M | 134.49M | 124.67M | 93.39M | 140.89M | 118.75M |
Balance Sheet | ||||||
| Total Assets | 2.37B | 2.24B | 2.02B | 2.01B | 1.98B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 31.02M | 36.53M | 26.63M | 28.93M | 20.92M | 25.74M |
| Total Debt | 763.90M | 778.58M | 633.37M | 658.54M | 650.70M | 511.55M |
| Total Liabilities | 1.11B | 1.05B | 962.81M | 961.18M | 982.02M | 807.07M |
| Stockholders Equity | 1.26B | 1.19B | 1.06B | 1.05B | 999.60M | 938.42M |
Cash Flow | ||||||
| Free Cash Flow | 4.48M | 38.42M | 97.94M | 81.83M | -67.25M | 84.43M |
| Operating Cash Flow | 123.37M | 127.83M | 157.15M | 169.70M | 12.07M | 145.22M |
| Investing Cash Flow | -116.97M | -92.68M | -59.21M | -87.62M | -98.45M | -35.56M |
| Financing Cash Flow | -37.48M | -35.03M | -81.55M | -82.00M | 86.18M | -107.76M |
Sensient Technologies Technical Analysis
Positive
126.79
Price Trends
118.24
Positive
110.03
Positive
101.99
Positive
Market Momentum
3.09
Negative
63.72
Neutral
80.26
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 126.79 is above the 20-day moving average (MA) of 118.86, above the 50-day MA of 118.24, and above the 200-day MA of 101.99, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.26 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.12B | 18.69 | 9.14% | 2.11% | 0.25% | 325.27% | |
76 Outperform | $5.38B | 32.73 | 12.79% | 0.59% | 10.14% | 16.56% | |
69 Neutral | $5.26B | 33.16 | 13.02% | 1.31% | 8.12% | 16.87% | |
69 Neutral | $3.33B | 21.12 | 7.16% | 2.91% | 1.33% | 57.45% | |
62 Neutral | $1.46B | -534.50 | -0.22% | 2.73% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.97B | 16.22 | 9.16% | 1.71% | -0.57% | 81.10% |
* Basic Materials Sector Average
SXT
Sensient Technologies
128.50
13.68
11.91%
BCPC
Balchem
180.42
22.05
13.93%
FUL
H.B. Fuller Company
59.17
3.85
6.97%
IOSP
Innospec
91.53
11.07
13.76%
AVNT
Avient
42.65
10.81
33.95%
SCL
Stepan Company
63.96
16.58
34.99%
Sensient Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Sensient Technologies Raises Outlook After Strong Quarterly Results
Positive
Jul 24, 2026
Sensient Technologies reported strong second-quarter results for the period ended June 30, 2026, with revenue rising 11.6% year over year to $462.1 million, or 9.9% in local currency, and operating income jumping 32.9% to $76.7 million as prior-ye...
Business Operations and StrategyPrivate Placements and Financing
Sensient Technologies Secures New $400 Million Term Loan
Positive
Jun 23, 2026
On June 18, 2026, Sensient Technologies Corporation entered into a new unsecured delayed-draw term loan facility of up to $400 million, arranged with CoBank and a syndicate of lenders, to be drawn in up to five advances over 15 months and maturing...
Executive/Board ChangesShareholder Meetings
Sensient Shareholders Back Board, Executive Pay and Auditor
Positive
Apr 28, 2026
Sensient Technologies held its annual meeting of shareholders on April 23, 2026, at which investors elected nine directors to serve until the next annual meeting, signaling continued support for the company’s existing board composition and l...
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.