Sensata Technologies: Improvements, Albeit Very Modest
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The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummarySensata Technologies shows modest organic growth and gradual deleveraging but remains hampered by flattish sales and highly adjusted earnings.Recent SKU rationalization is hurting top-line sales but could improve margins, though tangible benefits remain to be seen.Leverage is trending down, with net debt reduced to $2.43 billion and a 2.9x EBITDA ratio, yet it remains elevated.Despite a recent 25% rally, valuation is reasonable, but growth is unconvincing; I remain cautious and await clearer operational improvements. Hiroshi Watanabe/DigitalVision via Getty Images A little over a year ago, I concluded that Sensata Technologies Holding plc (ST) was a sensor play that was awaiting some green shoots. Despite a promising position, investors were left disappointed multiple times in its past, with reported sales trending flattishThis article was written byThe Value Investor27.39K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You