Sensient Technologies Corporation (SXT) Company Bio
Sensient Technologies is a global manufacturer and marketer of colors, flavors and fragrances, used in specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and fine chemicals. The company was founded in 1882 and is based in Milwaukee, Wisconsin.
SXT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SXT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sensient Technologies Corp ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 40.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SXT, they are:
In the past 5.55 years, Sensient Technologies Corp has a compound free cash flow growth rate of 0.12%; that's better than 47.9% of cash flow producing equities in the Basic Materials sector, where it is classified.
75% of the company's capital comes from equity, which is greater than 58.37% of stocks in our cash flow based forecasting set.
Sensient Technologies Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 6.02. This coverage rate is greater than that of 58.98% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ACH, MERC, OEC, LIN, and BHP can be thought of as valuation peers to SXT, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.