Sensient Story

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SXT -- USA Stock  

USD 75.94  0.61  0.80%

Sensient Technologies is scheduled to announce its earnings today. Sensient Technologies Calculated Tax Rate is comparatively stable at the moment as compared to the past year. Sensient Technologies reported Calculated Tax Rate of 21.58 in 2020. PPandE Turnover is likely to gain to 3.41 in 2021, whereas Average Equity is likely to drop slightly above 750.4 M in 2021. As many passive investors are finally getting excited about basic materials space, Sensient Technologies Corporati could be a good starting point.
Published over two weeks ago
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Will Sensient (NYSE:SXT) sophisticated investors stop to drop in March?
This firm has 561.58 M in debt with debt to equity (D/E) ratio of 0.63, which is OK given its current industry classification. The company has a current ratio of 3.48, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Sensient Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sensient Technologies, including all of Sensient Technologies's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sensient Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sensient Technologies debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Sensient Total Liabilities

Sensient Technologies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Sensient Technologies has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Sensient Technologies balance sheet include debt obligations and money owed to different Sensient Technologies vendors, workers, and loan providers. Below is the chart of Sensient short long-term liabilities accounts currently reported on its balance sheet.
You can use Sensient Technologies Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Sensient Technologies's Liquidity

Sensient Technologies financial leverage refers to using borrowed capital as a funding source to finance Sensient Technologies Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sensient Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Sensient Technologies's total debt and its cash.

Breaking down the case for Sensient Technologies

The modest gains experienced by current holders of Sensient Technologies created some momentum for private investors as it was traded today as low as 76.02 and as high as 79.46 per share. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.71. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Liabilities Breakdown

184.8 M
Current Liabilities
661.8 M
Long-Term Liabilities
Total Liabilities725.99 Million
Current Liabilities184.79 Million
Long-Term Liabilities661.78 Million
Tax Liabilities27.28 Million

Sensient showing indication of lower volatility

Newest Risk Adjusted Performance is up to 0.08. Price may drop again. Sensient Technologies Corporati has relatively low volatility with skewness of 0.22 and kurtosis of 3.56. However, we advise all investors to independently investigate Sensient Technologies Corporati to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Sensient Technologies Investment

Whereas other entities under the specialty chemicals industry are still a bit expensive, Sensient Technologies may offer a potential longer-term growth to private investors. The bottom line, as of the 12th of February 2021, our research shows that Sensient Technologies is a rather very steady investment opportunity with a low probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our latest 30 days buy-hold-sell recommendation on the firm is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Sensient Technologies Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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