Sensient Technologies Corporation Common Stock (SXT)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with a durable moat, honest accounting, and a price that leaves room for error. Sensient sells colors, flavors, and specialty ingredients — products that often become embedded in customers' formulations, which can create switching costs and repeat demand. The recent record is improving: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $462.1M, net income was $51.4M, and diluted EPS was $1.20; in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $414.2M, net income was $37.6M, and diluted EPS was $0.88. For FY2025, net income was $134.5M and diluted EPS $3.16, up from $124.7M and $2.94 in FY2024. That is real progress. Yet I am wary of the cash economics. Trailing free cash flow was only $4.5M, a FairStock FCF yield of 0.1%, and FairStock ROCE of 6.79% is modest for a specialty chemicals business. Debt/equity of 0.61 is manageable, while FairStock Altman Z-Score 4.94 and Piotroski F-Score 7/9 suggest a reasonably safe balance sheet. Valuation is the rub: at the 2026-10-13 close of $132.55, FairStock shows a P/E of 35.73, P/B of 4.46, EV/EBITDA of 21.14, and Graham Number of $49.70, leaving a margin of safety of -166.70%. The market is paying a premium for cyclical earnings. I would want to see FCF and ROCE improve before calling this a bargain.

In plain English: Sensient makes colors, flavors, and specialty ingredients used in food, drinks, and personal-care products worldwide. The business has been growing sales and profits, and its latest reported quarter was better than a year earlier, but it generates very little spare cash after running and investing in the business. At the recent close, the stock looks expensive compared with its earnings, book value, and a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer