📊 SXT Key Takeaways
Is Sensient Technologies Corp. (SXT) a Good Investment?
Despite respectable profitability metrics (10.1% net margin, 7.9% net income growth), Sensient faces severe operational cash flow deterioration with negative OCF of -13.6M and negative FCF of -42.4M, indicating a critical disconnect between accrual-based earnings and cash generation. With 767.6M in debt and only 38.5M cash, the company's ability to sustain dividends, service obligations, and fund operations is at risk if cash flow trends persist.
Sensient Technologies Corp. Key Strengths (SXT)
- Net income growing faster than revenue (7.9% vs 3.5% YoY), demonstrating operational leverage and margin expansion
- Strong liquidity ratios with current ratio of 5.01x and quick ratio of 1.97x provide short-term flexibility
- Respectable profitability with 15.3% operating margin and 10.1% net margin in industrial chemicals sector
- Manageable debt-to-equity ratio of 0.63x and strong interest coverage of 8.4x
SXT Stock Risks: Sensient Technologies Corp. Investment Risks
- Critical cash generation problem: negative operating cash flow of -13.6M despite accounting profitability signals quality of earnings concerns and working capital stress
- Negative free cash flow of -42.4M coupled with deteriorating cash position (38.5M) creates unsustainable burn rate given 767.6M debt obligation
- Severely depressed returns on capital: ROE of 3.6% and ROA of 1.9% indicate poor asset and equity efficiency
- Large debt burden (767.6M) relative to shrinking liquidity base creates refinancing and covenant risk if operational cash flow doesn't recover
Key Metrics to Watch
- Operating cash flow trend - must return to positive within next 2-3 quarters to validate earnings quality
- Cash position and burn rate - critical to monitor sustainability given negative FCF and debt obligations
- Working capital metrics (days sales outstanding, inventory turnover, accounts payable) - root cause analysis of OCF deterioration
- ROE and ROA improvement trajectory - currently inadequate returns warrant substantial operational improvement
Sensient Technologies Corp. (SXT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.01x current ratio provides a solid financial cushion.
SXT Profit Margin, ROE & Profitability Analysis
SXT vs Materials Sector: How Sensient Technologies Corp. Compares
How Sensient Technologies Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sensient Technologies Corp. Stock Overvalued? SXT Valuation Analysis 2026
Based on fundamental analysis, Sensient Technologies Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sensient Technologies Corp. Balance Sheet: SXT Debt, Cash & Liquidity
SXT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sensient Technologies Corp.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.21 reflects profitable operations.
SXT Revenue Growth, EPS Growth & YoY Performance
SXT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $392.3M | $34.5M | $0.81 |
| Q3 2025 | $392.6M | $32.7M | $0.77 |
| Q2 2025 | $403.5M | $30.9M | $0.73 |
| Q1 2025 | $384.7M | $30.9M | $0.73 |
| Q3 2024 | $363.8M | $31.5M | $0.75 |
| Q2 2024 | $374.3M | $30.9M | $0.73 |
| Q1 2024 | $369.0M | $30.9M | $0.73 |
| Q3 2023 | $361.1M | $31.5M | $0.75 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sensient Technologies Corp. Dividends, Buybacks & Capital Allocation
SXT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sensient Technologies Corp. (CIK: 0000310142)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SXT
What is the AI rating for SXT?
Sensient Technologies Corp. (SXT) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SXT's key strengths?
Claude: Net income growing faster than revenue (7.9% vs 3.5% YoY), demonstrating operational leverage and margin expansion. Strong liquidity ratios with current ratio of 5.01x and quick ratio of 1.97x provide short-term flexibility.
What are the risks of investing in SXT?
Claude: Critical cash generation problem: negative operating cash flow of -13.6M despite accounting profitability signals quality of earnings concerns and working capital stress. Negative free cash flow of -42.4M coupled with deteriorating cash position (38.5M) creates unsustainable burn rate given 767.6M debt obligation.
What is SXT's revenue and growth?
Sensient Technologies Corp. reported revenue of $435.8M.
Does SXT pay dividends?
Sensient Technologies Corp. pays dividends, with $17.4M distributed to shareholders in the trailing twelve months.
Where can I find SXT SEC filings?
Official SEC filings for Sensient Technologies Corp. (CIK: 0000310142) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SXT's EPS?
Sensient Technologies Corp. has a diluted EPS of $1.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SXT's fundamental grade?
Based on our AI fundamental analysis in May 2026, Sensient Technologies Corp. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SXT stock overvalued or undervalued?
Valuation metrics for SXT: ROE of 3.6% (sector avg: 14%), net margin of 10.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SXT's AI grade for 2026?
Our dual AI analysis gives Sensient Technologies Corp. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SXT's free cash flow?
Sensient Technologies Corp.'s operating cash flow is $-13.6M, with capital expenditures of $28.7M. FCF margin is -9.7%.
How does SXT compare to other Materials stocks?
Vs Materials sector averages: Net margin 10.1% (avg: 10%), ROE 3.6% (avg: 14%), current ratio 5.01 (avg: 1.6).