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Sensata Technologies Holding PLC ST

Morningstar Rating
$34.73 +0.31 (0.90%)
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Company Report

Sensata Earnings: Tough Sledding Continuing Into 2024, but Shares Remain Cheap for Long-Term Buyers

We maintain our $69 fair value estimate for shares of narrow-moat Sensata Technologies after it reported fourth-quarter results and gave an outlook for 2024 that both matched our expectations. Sensata continues to deal with softer end market demand that has weighed on results in the past two years and appears set to continue through 2024. Despite short-term challenges, we continue to like the firm’s focus on electrification and expect this to contribute to higher growth in the long run. With this long-term view, we continue to see significant upside for investors with a longer time horizon. We don’t see catalysts to the stock in 2024 but expect a positive inflection in 2025 and 2026 when the firm’s electrification business wins contribute more meaningfully to revenue.

Price vs Fair Value

ST is trading at a 50% discount.
Price
$34.73
Fair Value
$96.00
Uncertainty
High
1-Star Price
$136.39
5-Star Price
$29.20
Economic Moat
Vjjmps
Capital Allocation
Ckqhnhcp

Bulls Say, Bears Say

Bulls

Sensata should benefit from secular trends toward electrification, efficiency, and connectivity to continue outgrowing global vehicle production.

Bears

Sensata derives three fourth of its sales from the cyclical transportation industry, leaving it vulnerable to downturns like those seen in 2019 and 2020.

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News

Trading Information

Previous Close Price
$34.42
Day Range
$34.1034.77
52-Week Range
$30.5652.05
Bid/Ask
$33.80 / $35.56
Market Cap
$5.26 Bil
Volume/Avg
947,057 / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
9.62
Price/Sales
1.30
Dividend Yield (Trailing)
1.38%
Dividend Yield (Forward)
1.38%
Total Yield
3.06%

Company Profile

Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata sells a bevy of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. The majority of the firm’s revenue comes from the automotive market, where it focuses on bumper-in applications.
Sector
Technology
Industry
Scientific & Technical Instruments
Stock Style Box
Small Value
Total Number of Employees
20,800

Competitors

Valuation

Metric
ST
LFUS
APH
Price/Earnings (Normalized)
9.6220.3436.81
Price/Book Value
1.752.407.95
Price/Sales
1.302.545.48
Price/Cash Flow
8.5613.8528.81
Price/Earnings
ST
LFUS
APH

Financial Strength

Metric
ST
LFUS
APH
Quick Ratio
1.522.271.36
Current Ratio
2.553.752.17
Interest Coverage
0.939.2418.60
Quick Ratio
ST
LFUS
APH

Profitability

Metric
ST
LFUS
APH
Return on Assets (Normalized)
6.59%7.45%11.95%
Return on Equity (Normalized)
17.52%12.56%24.58%
Return on Invested Capital (Normalized)
9.63%9.66%16.36%
Return on Assets
ST
LFUS
APH
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