One-glance verdict
Overvalued
$37.89 our estimate vs market $131.89
Wall Street consensus: $144.40 (281.1% higher than our fair-value estimate)
248% above our estimate, beyond the bull case
Fundamentals snapshot
Sensient Technologies Corporation
SXT · NYQ · Basic Materials · Specialty Chemicals
Current price
$131.89
52-week range
$82.60 - $138.82
Market cap
$5.61B
Balance sheet
Watch
7.00x Adequate
Net debt $732.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 13.1% on equity, ahead of 66% of its peers.
- Risk Stock trades 34.6% above its 5-year average P/E.
- Risk Net debt grew 6.9% over 3 years.
What this company does
Sensient Technologies Corporation
Sensient Technologies Corporation makes and sells ingredients that give food, drinks, and personal care products their color and taste, with the majority of its money coming from its flavors and colors for the food and beverage industries. This is important because it means Sensient's business is tied to how much people buy everyday consumer goods like snacks and drinks.
How the company got here
Sensient Technologies has a long history, starting in 1882 as a distillery. Over time, it evolved through several name changes, including National Distilling, Red Star Yeast, and Universal Foods, reflecting shifts in its business focus. Initially involved in distilling and then yeast production, the company transformed into a diversified food producer before strategically moving into the food color and flavor business in the 1980s. In 2000, it rebranded as Sensient Technologies to emphasize its focus on specialty ingredients and technology-driven solutions, divesting commodity businesses to concentrate on higher-value, innovative products.
What it actually does
Sensient Technologies is a global manufacturer and marketer of colors, flavors, and other specialty ingredients (ingredients that are not basic commodities and often have unique properties or functions). These ingredients are essential components in a vast array of consumer products. The company's customers are primarily businesses in the food and beverage, pharmaceutical, nutraceutical (food or food products that provide health and medical benefits), cosmetic, and personal care industries. Sensient leverages advanced technologies and a robust global supply chain to develop these specialized solutions for its diverse clientele.
Flavors & Extracts Group
This segment is a major part of Sensient's business, focusing on creating and supplying flavor systems (a combination of flavor ingredients designed to create a specific taste profile) and extracts. These products are used to enhance the taste and aroma of a wide range of food and beverage items, as well as personal care products. The group also produces agricultural ingredients, such as dehydrated garlic and onion, for food processors. Sensient utilizes proprietary research and advanced technology platforms to develop customized taste solutions that meet specific customer needs and market trends.
Color Group
The Color Group is a core platform for Sensient, specializing in the development, manufacturing, and marketing of both natural and synthetic color solutions. These colors are vital for the visual appeal of products across various industries, including food and beverages, pharmaceuticals, nutraceuticals, and personal care items. The group also produces technical colors for industrial applications. Sensient is recognized as a leading global supplier in this area, emphasizing innovation and the development of customized color systems (a formulation of colorants designed to provide a specific hue, stability, and performance) to meet evolving market demands and regulatory requirements.
Asia Pacific Group
This segment operates as a geographically focused business unit, responsible for marketing Sensient's diverse range of colors, flavors, and specialty ingredients throughout the Pacific Rim and India. The Asia Pacific Group's strategy involves building local manufacturing capabilities, customer service, and relationships to cater to the specific preferences and growth opportunities within these dynamic markets. By establishing a strong regional presence, Sensient aims to effectively serve a growing customer base and adapt its offerings to local tastes and demands.
What management is betting on now
Sensient's management is strategically focused on capitalizing on the growing consumer demand for natural, wellness-oriented, and sustainable ingredients, often referred to as 'clean label' products. A key priority is to increase the proportion of revenue derived from these natural and sustainable product lines through innovation and new product development. The company is also investing in expanding its capabilities and market presence within the high-growth Asia-Pacific region. By combining advanced technology with deep regulatory expertise, Sensient aims to be the preferred partner for brands seeking to create appealing and healthier consumer products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$63.58M
FY2024 Q4
$-1.73M
FY2025 Q1
$-25.83M
FY2025 Q2
$27.10M
FY2025 Q3
$24.21M
FY2025 Q4
$12.94M
FY2026 Q1
$-42.35M
FY2026 Q2
$9.69M
Revenue
$462.08M
Net income
$51.36M
Diluted EPS
1.20
Operating cash flow
$48.46M
Free cash flow
$9.69M
Fetching…
Sources
Revenue
$435.83M
Net income
$44.17M
Diluted EPS
1.04
Operating cash flow
$-13.62M
Free cash flow
$-42.35M
Fetching…
Sources
Revenue
$393.45M
Net income
$25.48M
Diluted EPS
0.60
Operating cash flow
$44.56M
Free cash flow
$12.94M
Fetching…
Sources
Revenue
$412.11M
Net income
$36.96M
Diluted EPS
0.87
Operating cash flow
$43.96M
Free cash flow
$24.21M
Fetching…
Sources
Revenue
$414.23M
Net income
$37.59M
Diluted EPS
0.88
Operating cash flow
$48.28M
Free cash flow
$27.10M
Fetching…
Sources
Revenue
$392.32M
Net income
$34.46M
Diluted EPS
0.81
Operating cash flow
$-8.98M
Free cash flow
$-25.83M
Fetching…
Sources
Revenue
$376.42M
Net income
$30.10M
Diluted EPS
0.71
Operating cash flow
$21.39M
Free cash flow
$-1.73M
Fetching…
Sources
Revenue
$392.61M
Net income
$32.69M
Diluted EPS
0.77
Operating cash flow
$76.81M
Free cash flow
$63.58M
Fetching…
Sources
Is it cheap or expensive?
Fair value $37.89 vs current price $131.89
Wall Street consensus is the average analyst price target: $144.40 (281.1% higher than our fair-value estimate).
Our most-likely fair value is $37.89 a share — about 71.3% below today's price of $131.89, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $732.9M. Interest coverage 7.0x.
Net debt
$732.88M
Interest coverage
7.00x
Sensient Technologies Corporation's profit covers its interest bill about 7.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SXT
BASELINE
Sensient Technologies Corporation
Total debt $763.90M Interest coverage 7.00x This is the baseline the peer rows are being compared against.
Total debt $6.28B Interest coverage 3.68x -47% vs SXT Carries about 1.9x less debt cushion than SXT.
Total debt $142.44M Interest coverage 20.48x +193% vs SXT Carries about 2.9x more debt cushion than SXT.
Total debt $1.78B Interest coverage 28.03x +300% vs SXT Carries about 4.0x more debt cushion than SXT.
Total debt $1.48B Interest coverage 1.44x -79% vs SXT Carries about 4.9x less debt cushion than SXT.
Total debt $3.15B Interest coverage 10.19x +46% vs SXT Carries about 1.5x more debt cushion than SXT.
What you should know
The case for and against SXT
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 13.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 34.6% above its 5-year average P/E.
-
Net debt grew 6.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.55x
Forward P/E
26.41x
P/B
4.43x
P/S
3.30x
EV/EBITDA
20.43x
PEG ratio
1.74x
Profitability
How much profit each dollar creates
Gross margin
34.9%
Operating margin
16.6%
Net margin
9.3%
ROE
13.1%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.61x
Current ratio
4.39x
Quick ratio
1.51x
Total debt
$763.90M
Total cash
$31.02M
Growth
How the business has been compounding
Revenue TTM
$1.70B
Revenue 5Y CAGR
4.0%
EPS TTM
3.71
EPS 5Y CAGR
-1.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$123.37M
Free CF TTM
$38.42M
FCF margin
2.3%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
44.2%
Last ex-div date
2026-08-03