Sensient Technologies SXT
United StatesBasic Materials · Specialty ChemicalsUSD
144.40 USD (+9.4%)
5 analysts
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Sensient Technologies is a US manufacturer of specialty chemicals: colors, flavors and fragrances for food, beverages, cosmetics and industrial applications, selling globally to major consumer brands.
Key points
from its scores- ✓Good share-price trend8.4
- ✓Strong growth7.7
- ✓Favourable backdrop7.2
- ✕Demanding valuation3.0
- ✕Little competitive advantage4.6
AI analysis
bottom line, main risk, context and newsMomentum and growth justify the premium, but weak free cash flow generation and the elevated multiple argue for waiting for a better entry point.
Sensient shows solid growth (revenue +11.6%, earnings +36.4%) with a healthy balance sheet (ND/EBITDA 2.36, current ratio 4.39), but its demanding valuation (P/E 34.55, negative FCF yield) and poor cash conversion (-0.84) limit the appeal at these prices.
Negative free cash flow conversion (-0.84) is the main weakness: if growth cools, the 34.5x earnings valuation will lack support from real cash flows.
Context and risks
No relevant recent news and no material exposure to current macro factors (rates, oil, tariffs) not already covered by quantitative metrics. The specialty chemicals business profile for consumer and industrial end-markets does not depend on energy commodities or conflict-affected shipping routes.
Is Sensient Technologies stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 92% above the Basic Materials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 34.6 | 19.2 | +80% |
| EV / EBITDA | 20.4 | 10.0 | +105% |
| Price / book | 4.4 | 2.3 | +96% |
| Price / sales | 3.3 | 2.2 | +50% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.0 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 144.40 USD, +9.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.6 (sector 5.1), Growth 7.7 (sector 6.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 34.6
- Forward P/E
- 26.4
- EV / EBITDA
- 20.4
- Price / book
- 4.4
- Price / sales
- 3.3
- PEG
- 1.74
- Market cap
- 5.6B USD
- Enterprise value
- 6.4B USD
Profitability
- ROE
- 13.1%
- ROA
- 6.8%
- ROIC (approx.)
- 13.9%
- Gross margin
- 34.9%
- Operating margin
- 16.6%
- Net margin
- 9.3%
- Free cash flow
- −2.6M USD
- FCF yield
- −0.0%
- Cash conversion
- −1%
Solvency
- Total debt
- 763.9M USD
- Net debt
- 732.9M USD
- Cash
- 31.0M USD
- EBITDA
- 310.7M USD
- Net debt / EBITDA
- 2.36
- Debt / equity
- 60.63
- Current ratio
- 4.39
- Quick ratio
- 1.51
Growth
- Revenue growth
- +11.6%
- Earnings growth
- +36.4%
- EPS (TTM)
- 3.82 USD
- EPS (forward)
- 4.99 USD
Dividend
- Dividend yield
- 1.2%
- Payout
- 44.2%
Risk and market
- Beta
- 0.83
- Analyst consensus
- Buy (5)
- Target price
- 144.40 USD
- 52-week range
- 82.60 – 138.82
Recent news
All SXT news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Sensient Technologies
Is Sensient Technologies stock cheap or expensive?
On P/E and EV / EBITDA, it trades 92% above the Basic Materials median on average. Valuation score: 3.0 out of 10 (median for Basic Materials: 5.8). Average analyst target: 144.40 USD, +9.4% versus the price. This is not investment advice.
What score does Sensient Technologies get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,277 of 2,130 (better than 39% of the companies analysed). Its strongest category is Momentum (8.4) and its weakest, Valuation (3.0). Analysis of 08/10/2026.
What is Sensient Technologies's P/E ratio?
Its P/E is 34.6: the share price equals 34.6 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 26.4.
How much is Sensient Technologies worth on the stock market?
Its market capitalisation is 5.6B USD and its enterprise value, debt included, is 6.4B USD.
How much debt does Sensient Technologies have?
Its net debt (debt minus cash) is 732.9M USD. That is 2.36 times its EBITDA; the Basic Materials median is 1.41.
Does Sensient Technologies pay a dividend?
Yes: its dividend yield is 1.24% and it pays out 44% of its earnings.
How has Sensient Technologies stock performed over the last year?
It has risen 44.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 82.60 and 138.82 USD. Past performance does not guarantee future results.
What do analysts think of Sensient Technologies?
5 analysts cover it; their average recommendation is “Buy” and their average target is 144.40 USD (+9.4% versus the price). It is an estimate, not market data.