New Lifetime High Reached: Sensient Technologies Corporation (SXT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Sensient Technologies Corporation ( SXT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Sensient Technologies Corporation as such a stock due to the following factors:

  • SXT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • SXT has traded 230,300 shares today.
  • SXT is trading at a new lifetime high.

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More details on SXT:

Sensient Technologies Corporation engages in the manufacture and marketing of colors, flavors, and fragrances primarily in North America, Europe, and the Asia Pacific. The company operates in two segments, Flavors and Fragrances Group, and Color Group. The stock currently has a dividend yield of 1.9%. SXT has a PE ratio of 20.8. Currently there is 1 analyst that rates Sensient Technologies Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sensient Technologies Corporation has been 176,800 shares per day over the past 30 days. Sensient has a market cap of $2.4 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.95 and a short float of 3.5% with 5.49 days to cover. Shares are up 33.8% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sensient Technologies Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, SXT's share price has jumped by 31.73%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SXT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $44.46 million or 10.75% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.04%.
  • SENSIENT TECHNOLOGIES CORP's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SENSIENT TECHNOLOGIES CORP increased its bottom line by earning $2.49 versus $2.41 in the prior year. This year, the market expects an improvement in earnings ($2.70 versus $2.49).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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