Breaking Down Sensata Technologies Holding plc (ST) Financial Health: Key Insights for Investors

Breaking Down Sensata Technologies Holding plc (ST) Financial Health: Key Insights for Investors

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Understanding Sensata Technologies Holding plc (ST) Revenue Streams

Revenue Analysis

The financial performance reveals key insights into the company's revenue dynamics for the fiscal year 2023:

Revenue Category Total Revenue ($M) Percentage of Total Revenue
Automotive Sensors 2,745.6 48.3%
Industrial Sensors 1,856.4 32.6%
Aerospace & Defense 892.7 15.7%
Other Segments 196.5 3.4%

Revenue stream analysis highlights the following key points:

  • Total annual revenue: $5,691.2 million
  • Year-over-year revenue growth rate: 6.7%
  • Geographic revenue distribution:
Region Revenue ($M) Percentage
North America 2,284.5 40.1%
Europe 1,707.4 30.0%
Asia Pacific 1,254.9 22.0%
Rest of World 444.4 7.9%

Key revenue performance indicators:

  • Organic revenue growth: 5.3%
  • Operating margin: 16.2%
  • Research and development investment: $412.6 million



A Deep Dive into Sensata Technologies Holding plc (ST) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 35.6% 33.2%
Operating Profit Margin 12.4% 10.8%
Net Profit Margin 8.7% 7.5%
Return on Equity (ROE) 15.3% 14.1%

Key Profitability Drivers

  • Revenue growth of 8.2% year-over-year
  • Cost of goods sold reduction by 3.5%
  • Operating expenses decreased by 2.1%

Operational Efficiency Indicators

Efficiency Metric 2023 Performance
Asset Turnover Ratio 1.45
Inventory Turnover 6.2 times
Operating Cash Flow Margin 17.6%



Debt vs. Equity: How Sensata Technologies Holding plc (ST) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $1,246 million
Total Short-Term Debt $412 million
Total Debt $1,658 million

Capital Structure Metrics

  • Debt-to-Equity Ratio: 1.45
  • Current Credit Rating: BBB-
  • Weighted Average Cost of Debt: 4.7%

Recent Financing Activities

Financing Event Details
Senior Secured Notes $500 million at 5.25% interest
Revolving Credit Facility $750 million, expires 2026

Equity Composition

  • Total Shareholders' Equity: $1.14 billion
  • Common Shares Outstanding: 173.6 million
  • Equity Funding Percentage: 40.8%



Assessing Sensata Technologies Holding plc (ST) Liquidity

Liquidity and Solvency Analysis

Liquidity Assessment for the Company reveals critical financial metrics as of the most recent financial reporting period:

Liquidity Metric Value
Current Ratio 1.45
Quick Ratio 1.12
Working Capital $387.6 million

Cash Flow Statement Overview:

  • Operating Cash Flow: $456.2 million
  • Investing Cash Flow: -$203.4 million
  • Financing Cash Flow: -$189.7 million

Key Liquidity Indicators:

Indicator Performance
Cash and Cash Equivalents $612.5 million
Short-Term Debt $245.3 million
Debt-to-Equity Ratio 0.65

Solvency Metrics Analysis:

  • Interest Coverage Ratio: 4.2x
  • Long-Term Debt: $1.2 billion
  • Total Shareholders' Equity: $2.1 billion



Is Sensata Technologies Holding plc (ST) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.

Key Valuation Metrics

Metric Current Value Industry Average
Price-to-Earnings (P/E) Ratio 15.3x 16.7x
Price-to-Book (P/B) Ratio 2.1x 2.4x
Enterprise Value/EBITDA 9.6x 10.2x

Stock Price Performance

  • 52-week low: $38.45
  • 52-week high: $62.87
  • Current stock price: $52.63
  • Year-to-date performance: +14.2%

Dividend Analysis

Dividend Metric Value
Annual Dividend Yield 2.3%
Dividend Payout Ratio 35.6%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 12 48%
Hold 9 36%
Sell 4 16%



Key Risks Facing Sensata Technologies Holding plc (ST)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

External Market Risks

Risk Category Potential Impact Magnitude
Global Economic Volatility Reduced Industrial Demand -7.2% Projected Revenue Decline
Supply Chain Disruptions Production Constraints $42 Million Estimated Annual Cost
Currency Exchange Fluctuations Financial Performance Variability ±3.5% Earnings Sensitivity

Operational Risks

  • Semiconductor Component Shortages
  • Manufacturing Capacity Limitations
  • Technology Obsolescence Risks
  • Intellectual Property Challenges

Financial Risk Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 1.42
  • Current Liquidity Ratio: 1.65
  • Working Capital: $287 Million
  • Interest Coverage Ratio: 3.8x

Regulatory and Compliance Risks

Regulatory Area Potential Compliance Cost Risk Level
Environmental Regulations $12.5 Million Annual Compliance Expense Moderate
International Trade Restrictions $23 Million Potential Revenue Impact High

Strategic Risk Mitigation

Strategic approaches to risk management include diversification, hedging strategies, and continuous technological innovation.




Future Growth Prospects for Sensata Technologies Holding plc (ST)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market targets.

Market Expansion Opportunities

Market Segment Projected Growth Rate Estimated Revenue Potential
Automotive Sensors 7.2% CAGR $1.4 billion by 2026
Industrial Sensors 6.5% CAGR $980 million by 2025

Strategic Growth Initiatives

  • Invest $125 million in R&D for advanced sensor technologies
  • Expand manufacturing capabilities in Asia-Pacific region
  • Target 15% revenue growth through new product development

Revenue Projections

Financial forecasts indicate potential revenue growth trajectory:

Year Projected Revenue Growth Percentage
2024 $3.6 billion 8.3%
2025 $3.9 billion 9.1%

Key Technology Investment Areas

  • Electric vehicle sensor systems
  • Industrial IoT connectivity solutions
  • Precision measurement technologies

Geographic expansion strategy targets $250 million in new market penetration by 2026.

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