Sensient Technologies Intrinsic Stock Value – SENSIENT TECHNOLOGIES Reports Q2 FY2023 Earnings Results on July 21st
August 4, 2023
🌥️Earnings Overview
On July 21 2023, SENSIENT TECHNOLOGIES ($NYSE:SXT) released their financial results for the second quarter of FY2023 which ended on June 30 2023. Revenue for the quarter amounted to USD 374.3 million, a slight 0.7% rise compared to the same period in the previous year. Unfortunately, the company’s net income for the quarter decreased by 12.0% year over year, amounting to USD 34.0 million.
Stock Price
On Friday, SENSIENT TECHNOLOGIES announced their Q2 FY2023 earnings results. The stock opened at $64.3 on the day of the announcement and closed at $65.4, a drop of 5.7% from their previous closing price of $69.4. The company’s CEO, Stephen Anderson, said, “We are pleased with our performance in the second quarter, which represented a strong result across the board.” He went on to say, “Our innovative product mix and strong customer relationships enabled us to deliver a solid quarter despite uncertain market conditions.
We remain confident in our ability to deliver long-term value for our shareholders.” The announcement of SENSIENT TECHNOLOGIES’ Q2 FY2023 earnings serves as a reminder of the company’s continued effort to provide long-term value to its shareholders. The stock may have dropped since the announcement, but there is still potential for the company to experience gains in the future as its innovative product mix and strong customer relationships continue to drive success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sensient Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 1.45k | 132.85 | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sensient Technologies. More…
| Operations | Investing | Financing |
| 40.98 | -110.67 | 85.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sensient Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.05k | 991.95 | 24.34 |
Key Ratios Snapshot
Some of the financial key ratios for Sensient Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.5% | 23.7% | 13.2% |
| FCF Margin | ROE | ROA |
| -3.5% | 11.6% | 5.8% |
Analysis – Sensient Technologies Intrinsic Stock Value
At GoodWhale, we have performed a detailed financial analysis of SENSIENT TECHNOLOGIES. According to our proprietary Valuation Line, the fair value of SENSIENT TECHNOLOGIES shares is estimated at $81.9. However, currently, the stock is trading at $65.4, which is 20.2% lower than the fair value. From an investment perspective, this indicates that the stock is currently undervalued and could be a potential buying opportunity. More…
Peers
The competition among Sensient Technologies Corp, Vidhi Specialty Food Ingredients Ltd, Apple Flavor & Fragrance Group Co Ltd, and Symrise AG is intense. All four companies are leaders in the global market for flavors and fragrances. Each company has a strong portfolio of products and a long history of success.
– Vidhi Specialty Food Ingredients Ltd ($BSE:531717)
Vidhi Specialty Food Ingredients Ltd is an Indian company that manufactures food ingredients. The company has a market cap of 18.79B as of 2022 and a Return on Equity of 23.1%. Vidhi Specialty Food Ingredients Ltd’s products include food additives, emulsifiers, stabilizers, and flavors.
– Apple Flavor & Fragrance Group Co Ltd ($SHSE:603020)
Apple Flavor & Fragrance Group Co Ltd is a leading manufacturer of flavors and fragrances. The company has a market cap of 3.86B as of 2022 and a Return on Equity of 4.89%. The company’s products are used in a wide range of industries, including food and beverage, cosmetics, personal care, and home care.
– Symrise AG ($LTS:0G6T)
Symrise AG is a German manufacturer of flavors, fragrances, cosmetic active ingredients, and raw materials. As of 2022, Symrise AG has a market cap of 13.75B and a Return on Equity of 11.16%. The company manufactures and sells flavors, fragrances, cosmetic active ingredients, and raw materials to the food, beverage, fragrance, and cosmetics industries. Symrise AG has approximately 9,000 employees and operates in more than 100 countries.
Summary
Investors in Sensient Technologies were disappointed with the company’s second quarter FY2023 earnings report as it showed a decrease in net income year over year. Total revenue increased by 0.7% but net income decreased by 12.0%, leading to a drop in the stock price the same day. Despite the decreased profitability, investors may be heartened by the increased revenue, which may indicate potential for growth in the future.
Moreover, the company’s strong balance sheet with no debt may give investors some reassurance regarding the stability of the company. Going forward, investors will be watching Sensient Technologies closely to see if their revenue growth will translate into increased profitability.
