olivLaw · US equity research
Sensient Technologies Corporation SXT
Industrial Organic Chemicals · SIC 2860 · Vertical: Industrial Organic Chemicals (SIC 2860)
Sensient Technologies is a global manufacturer of colors, flavors and specialty ingredients, serving customers from small businesses to large food and pharmaceutical companies. The company is currently benefiting from the conversion of the US food market from synthetic to natural colors, with revenue of approximately 1.61 billion USD in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Sensient Technologies Corporation (SXT) stock was 125.82 USD (+7.66% on the day), with market capitalisation 5.4 bn USD, P/E 31.7 on diluted EPS of 3.97 USD over the last 12 months, dividend yield 1.30%, beta 0.68, 52-week range 82.96–137.45 USD. Latest reported quarter (Q3 2026): revenue of 455.8 m USD (+10.6% YoY), net income of 48.3 m USD (+30.8% YoY), diluted EPS 1.13 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 45.5
- neutral
- Bollinger (20, 2)
- 118.89 – 140.52
- in the lower half of the band · %B 0.32 · band width 16.7%
- SMA 50 / 200
- 130.60 / 114.12
- mixed trend
- MACD (12, 26, 9)
- -2.29 / -0.93
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −2.6% | −1.1% | −1.5 pp | — |
| 3 months | −3.4% | −0.5% | −2.9 pp | — |
| 6 months | +5.6% | +4.4% | +1.2 pp | — |
| Year to date | +33.9% | +12.3% | +21.6 pp | — |
| 1 year | +37.8% | +13.5% | +24.3 pp | −5.5% |
| 3 years | +114.4% | +76.4% | +38.0 pp | −33.8% |
| 5 years | +28.3% | +63.7% | −35.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 376.4 m | 392.3 m | 414.2 m | 412.1 m | 393.4 m | 435.8 m | 462.1 m | 455.8 m |
| Cost of revenue | 257.0 m | 260.5 m | 271.4 m | 270.8 m | 270.1 m | 283.1 m | 289.3 m | 290.9 m |
| SG&A | 77.4 m | 78.2 m | 85.1 m | 83.6 m | 85.2 m | 86.0 m | 96.1 m | 92.5 m |
| Operating income | 42.0 m | 53.5 m | 57.7 m | 57.7 m | 38.2 m | 66.7 m | 76.7 m | 72.4 m |
| Depreciation & amortisation | 15.1 m | 15.1 m | 15.3 m | 15.6 m | 15.2 m | 15.5 m | 15.9 m | 16.3 m |
| Interest expense | 6.4 m | 7.3 m | 7.4 m | 7.3 m | 7.5 m | 7.9 m | 8.2 m | 8.3 m |
| Pre-tax income | 35.6 m | 46.2 m | 50.3 m | 50.4 m | 30.7 m | 58.8 m | 68.5 m | 64.1 m |
| Income tax | 5.5 m | 11.7 m | 12.7 m | 13.4 m | 5.2 m | 14.7 m | 17.2 m | 15.8 m |
| Net income | 30.1 m | 34.5 m | 37.6 m | 37.0 m | 25.5 m | 44.2 m | 51.4 m | 48.3 m |
| Diluted EPS | 0.71 ≈ | 0.81 | 0.88 | 0.87 | 0.60 ≈ | 1.04 | 1.20 | 1.13 |
| Operating cash flow | 21.4 m | -9.0 m | 48.3 m ≈ | 44.0 m ≈ | 44.6 m | -13.6 m | 48.5 m ≈ | 40.5 m ≈ |
| Capex | 23.1 m | 16.9 m | 21.2 m ≈ | 19.8 m ≈ | 31.6 m | 28.7 m | 38.8 m ≈ | 38.3 m ≈ |
| Dividends paid | 17.4 m | 17.4 m | 17.3 m ≈ | 17.5 m ≈ | 17.4 m | 17.4 m | 17.4 m ≈ | 17.4 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 65 percentile of its own 40-quarter history (min 15.1, median 28.6, max 38.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.4 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.6 bn |
| Revenue YoY | −0.7% | −4.6% | +0.7% | +3.6% | +4.1% | +1.4% | +6.9% | +3.5% |
| Net income | 157.4 m | 82.0 m | 109.5 m | 118.7 m | 140.9 m | 93.4 m | 124.7 m | 134.5 m |
| Net income YoY | +75.6% | −47.9% | +33.4% | +8.5% | +18.6% | −33.7% | +33.5% | +7.9% |
| Diluted EPS | 3.70 | 1.94 | 2.59 | 2.81 | 3.34 | 2.21 | 2.94 | 3.16 |
| Diluted EPS YoY | +82.3% | −47.6% | +33.5% | +8.5% | +18.9% | −33.8% | +33.0% | +7.5% |
| net % | 11.3% | 6.2% | 8.2% | 8.6% | 9.8% | 6.4% | 8.0% | 8.3% |
| Free cash flow | 32.8 m | 138.1 m | 166.6 m | 84.4 m | -67.3 m | 81.8 m | 97.9 m | 38.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 36.5 m USD
- Financial debt
- 709.6 m USD
- Net debt
- 673.1 m USD
- Equity
- 1.2 bn USD
- Total assets
- 2.2 bn USD
- Debt / equity
- 0.59x
- Current ratio
- 4.10x
- ROE
- 11.9%
- ROA
- 6.3%
- FCF margin
- 2.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.4 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 13 Feb 2026verified |
| Cost of revenue | 908.3 m | 925.6 m | 947.9 m | 996.2 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Gross profit | 423.7 m ≈ | 454.7 m ≈ | 489.1 m ≈ | 460.3 m ≈ | 507.1 m ≈ | 539.3 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Research & development | 38.5 m | 34.3 m | 42.2 m | 48.1 m | 49.1 m | 52.9 m | SEC (XBRL)· 13 Feb 2026verified |
| SG&A | 271.1 m | 284.6 m | 292.4 m | 305.3 m | 315.5 m | 332.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Operating income | 152.7 m | 170.0 m | 196.8 m | 155.0 m | 191.6 m | 207.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Depreciation & amortisation | 49.6 m | 52.1 m | 52.5 m | 57.8 m | 60.3 m | 61.1 m | SEC (XBRL)· 13 Feb 2026verified |
| EBITDA | 202.3 m ≈ | 222.1 m ≈ | 249.2 m ≈ | 212.8 m ≈ | 251.9 m ≈ | 268.2 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Interest expense | 14.8 m | 12.5 m | 14.5 m | 25.2 m | 28.8 m | 29.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Pre-tax income | 137.8 m | 157.5 m | 182.2 m | 129.9 m | 162.8 m | 177.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Income tax | 28.4 m | 38.7 m | 41.3 m | 36.5 m | 38.1 m | 43.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Net income | 109.5 m | 118.7 m | 140.9 m | 93.4 m | 124.7 m | 134.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Diluted EPS | 2.59 | 2.81 | 3.34 | 2.21 | 2.94 | 3.16 | SEC (XBRL)· 13 Feb 2026verified |
| Weighted average diluted shares | 42.3 m | 42.3 m | 42.2 m | 42.2 m | 42.4 m | 42.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividend per share | 1.56 | 1.58 | 1.64 | 1.64 | 1.64 | 1.64 | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 24.8 m | 25.7 m | 20.9 m | 28.9 m | 26.6 m | 36.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Receivables | 234.1 m | 261.1 m | 302.1 m | 272.2 m | 290.1 m | 305.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Inventories | 381.3 m | 411.6 m | 564.1 m | 598.4 m | 600.3 m | 678.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Current assets | 741.6 m | 741.2 m | 934.8 m | 936.6 m | 961.9 m | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Property, plant & equipment, net | 445.5 m | 446.5 m | 483.2 m | 505.3 m | 491.6 m | 539.3 m | SEC (XBRL)· 13 Feb 2026verified |
| Goodwill | 423.3 m | 420.0 m | 415.7 m | 424.1 m | 411.8 m | 439.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Intangibles (excl. goodwill) | 10.9 m | 15.0 m | 18.6 m | 12.1 m | 11.9 m | 10.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Total assets | 1.7 bn | 1.7 bn | 2.0 bn | 2.0 bn | 2.0 bn | 2.2 bn | SEC (XBRL)· 13 Feb 2026verified |
| Short-term debt | 9.2 m | 8.5 m | 20.4 m | 13.5 m | 19.8 m | 352.0 k | SEC (XBRL)· 13 Feb 2026verified |
| Long-term debt | 518.0 m | 503.0 m | 630.3 m | 645.1 m | 613.5 m | 709.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Current liabilities | 216.0 m | 232.3 m | 272.2 m | 236.3 m | 270.6 m | 263.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Equity | 934.3 m † | 938.4 m † | 999.6 m † | 1.1 bn † | 1.1 bn † | 1.2 bn † | SEC (XBRL)· 13 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 218.8 m | 145.2 m | 12.1 m | 169.7 m | 157.2 m | 127.8 m | SEC (XBRL)· 13 Feb 2026verified |
| Capex | 52.2 m | 60.8 m | 79.3 m | 87.9 m | 59.2 m | 89.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Free cash flow | 166.6 m ≈ | 84.4 m ≈ | -67.3 m ≈ | 81.8 m ≈ | 97.9 m ≈ | 38.4 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Investing cash flow | -33.4 m | -35.6 m | -98.4 m | -87.6 m | -59.2 m | -92.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Financing cash flow | -184.2 m | -107.8 m | 86.2 m | -82.0 m | -81.5 m | -35.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividends paid | 66.1 m | 66.7 m | 68.9 m | 69.2 m | 69.4 m | 69.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Share repurchases | 0 | 42.5 m | 0 | 0 | — | — | SEC (XBRL)· 22 Feb 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 36 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40 · (margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet71
- Growth16
- Quality50
- Returns19
- Valuation13
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 20.16 – 58.45 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
- Peers: EV/EBITDA20.16 – 58.45 (Mid 32.80)6 companies used · median multiple 6.8x · quartiles 5.1x – 10.2xALTO, GPRE, LYB, MEOH, NEU, WLK
- Peers: P/E27.47 – 54.69 (Mid 41.66)7 companies used · median multiple 10.5x · quartiles 6.9x – 13.8xALTO, GPRE, LNZA, LYB, NEU, REX, WLKP
- Dividend discount (DDM)21.55 – 28.98 (Mid 24.72)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 36/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.0% | 60 (vs peers) | 11% |
| Net margin · Quality | 9.7% | 84 (vs peers) | 7% |
| FCF conversion · Quality | -10.3% | 0 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.9% | 33 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -1.8% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 2.4x | 43 (vs peers) | 11% |
| Interest coverage · Balance sheet | 8.0x | 99 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 4.0x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 31.7x | 22 (vs peers) | 11% |
| EV/EBITDA · Valuation | 19.3x | 14 (vs peers) | 11% |
| FCF yield · Valuation | -0.3% | 0 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 1.3% | 19 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet71/100 · 3/3 factors with a value
- Growth16/100 · 2/2 factors with a value
- Quality50/100 · 3/3 factors with a value
- Returns· partial19/100 · 1/2 factors with a value
- Valuation13/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Sensient Technologies Corp (SXT). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.6 bn USD in 2025; YoY growth 3.5%; net margin 9.7%; ROE 13.7%; net debt/EBITDA 2.4x.
The estimated value range is 21.55–54.69 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 32.80 USD, the price of 125.82 USD leaves a potential of -73.9% (value / price − 1) and a margin of safety of -283.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 36/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 9.7%
- Interest coverage: 8.0x
- Current ratio: 4.0x
What contradicts it
- FCF conversion: -10.3%
- EPS CAGR 3Y: -1.8%
- P/E (TTM): 31.7x
- EV/EBITDA: 19.3x
- FCF yield: -0.3%
- Shareholder yield (distributions): 1.3%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Payout ratio (FCF).
Versus the vertical median
Industrial Organic Chemicals (SIC 2860) · same industry (4-digit SIC) · compared with 20 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| IFFInternational Flavors & Fragrances Inc | 22.0 bn | 122.1 | 1.3% | 1.6% | −5.2% | +26% / +16% |
| LYBLyondellbasell Industries N.V. | 20.4 bn | 15.6 | 11.9% | 4.1% | −9.7% | +29% / −34% |
| WLKWestlake Corporation | 8.7 bn | — | -4.9% | -3.9% | −8.0% | +2% / −47% |
| NEUNewmarket Corporation | 6.7 bn | 14.7 | 25.3% | 16.5% | −2.2% | −5% / +37% |
| SXTSensient Technologies Corp | 5.4 bn | 31.7 | 13.7% | 9.7% | +3.5% | +38% / +114% |
| MEOHMethanex Corporation | 5.0 bn | 70.1 | 6.4% | 4.0% | −3.5% | +83% / +53% |
| REXRex American Resources Corporation | 1.3 bn | 10.5 | 22.5% | 20.9% | +1.2% | +20% / +62% |
| GPREGreen Plains Inc. | 957.5 m | 8.6 | 15.4% | 6.8% | −14.9% | +32% / −45% |
| WLKPWestlake Chemical Partners LP | 761.8 m | 12.9 | — | 4.8% | +2.7% | +14% / −5% |
| GEVOGevo, Inc. | 316.5 m | — | -57.0% | -119.9% | +849.3% | −40% / +13% |
| ALTOAlto Ingredients, Inc. | 271.5 m | 5.3 | 22.2% | 5.5% | −4.9% | +37% / +43% |
| FFFuturefuel Corp. | 246.5 m | — | -18.3% | -19.9% | −60.7% | +70% / −5% |
| CDXSCodexis, Inc. | 118.3 m | — | -69.4% | -39.6% | +18.6% | −38% / −54% |
| LODEComstock Inc. | 113.3 m | — | -38.2% | -3,680.5% | −48.5% | −58% / −68% |
| AMTXAemetis, Inc | 90.2 m | — | — | -27.4% | −26.2% | −28% / −72% |
| TANHTantech Holdings Ltd | 90.1 m | — | -25.7% | -80.9% | −10.7% | −76% / −100% |
| LNZALanzaTech Global, Inc. | 69.2 m | 0.4 | 146.4% | 295.7% | +12.6% | −63% / −99% |
| SAFXXcf Global, Inc. | 41.0 m | — | -246.1% | — | unavailable | −87% / unavailable |
| TOMZTomi Environmental Solutions, Inc. | 18.2 m | — | -168.8% | -49.8% | −27.2% | −6% / −26% |
| CNEYCn Energy Group. Inc. | 2.5 m | — | -11.2% | -31.3% | −30.2% | −65% / −99% |
| BAKBraskem SA | — | — | — | -14.6% | +9.7% | −61% / −86% |
1- and 3-year price returns: for SXT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 74.15 Total return -40% · Per year -40% | 131.13 Total return 6% · Per year 6% | 197.56 Total return 59% · Per year 59% |
| 3 years | 71.11 Total return -40% · Per year -16% | 141.57 Total return 17% · Per year 5% | 234.32 Total return 92% · Per year 24% |
| 5 years | 68.19 Total return -41% · Per year -10% | 152.85 Total return 29% · Per year 5% | 277.92 Total return 131% · Per year 18% |
- Exit P/E± 35.39
- Net margin± 24.77
- Annual revenue growth± 20.45
- Annual dilution± 2.08
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
In brief
Sensient Technologies is a global manufacturer of colors, flavors and specialty ingredients, serving customers from small businesses to large food and pharmaceutical companies. The company is currently benefiting from the conversion of the US food market from synthetic to natural colors, with revenue of approximately 1.61 billion USD in 2025 1.
SWOT
Strengths
- The company holds a leading position in natural and synthetic colors, supported by technological capabilities, laboratories and application expertise 1.
- A broad product range across flavors, extracts and colors allows the company to serve many customers across different industries 1.
- Higher volumes and prices in 2026 and a raised outlook show the ability to pass costs on to customers 23.
Weaknesses
- Dependence on a small number of customers in some product lines could affect sales if an important customer is lost 1.
- Interest costs have risen with debt levels, which could reduce profitability if rates stay high 12.
- The agricultural ingredients business has faced equipment inefficiencies and weather-related losses that affected results 1.
Opportunities
- The conversion of US food markets to natural colors could generate significant demand for the company's capacity and products 1.
- Expansion into nutraceutical ingredients and biotechnology could open new markets for the company 1.
- The 2026 outlook suggests the positive trend in revenue and profitability could continue if the market remains favorable 3.
Threats
Risks
- Intense competitionmedium
Competitors ranging from multinationals to regional producers could reduce sales or prices if they offer better solutions 1.
- Manufacturing disruptionhigh
Some products are made at only one facility, and a plant disruption could affect customer relationships and financial results 1.
- Tariffs and international tradehigh
Tariffs and trade restrictions can raise costs and affect exports, and customers may request compensation if tariff refunds are required 1.
- Interest costs and financingmedium
Higher interest rates have increased financing expenses, and more expensive access to credit could limit growth 12.
- Customer consolidationmedium
Large customers with greater bargaining power could press prices down or integrate production vertically, which could reduce profitability 1.
Investment thesis
What would need to be true (bull case)
- The conversion to natural colors in the US could drive sustained growth in the Color segment, where the company already has investments and expertise 1.
- Second quarter 2026 results and the raised outlook suggest that improving volumes and prices could continue 23.
- The company has a diversified portfolio and research and production capabilities that allow it to adapt to new regulations 1.
What would break the thesis
- Tariffs and trade uncertainty could reduce demand and raise costs, and gains from refunds may not recur 12.
- Dependence on a few large customers and their pricing pressure could limit long-term margins 1.
- Interest costs and debt levels could reduce profitability if financing conditions remain difficult 12.
What to watch
- Evolution of the 2026 guidance for revenue growth and adjusted EPSQ3 2026
- Pace of US customer conversion to natural colors and results of the Color segment2026
- Impact of tariffs and any refunds on the gross marginnext 10-K
- Trends in raw material and interest costs in quarterly reportsQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
The business
Sensient Technologies Corporation, incorporated in Wisconsin in 1882 and headquartered in Milwaukee, develops and manufactures colors, flavors, extracts, agricultural ingredients and other specialty ingredients for the food and beverage industry, as well as for pharmaceutical, nutraceutical and personal care products 1. Revenue was approximately 1.61 billion USD in 2025, compared with 1.56 billion USD in 2024 1. The company reports three segments: Flavors & Extracts, Color and Asia Pacific 1.
Costs linked to the Portfolio Optimization Plan, approved in 2023, weighed on 2025 results, and the plan was completed by mid-2026 12. The company reported GAAP diluted EPS of 3.16 USD for 2025 and adjusted diluted EPS of 3.48 USD 1.
Segments
Market context
The color and flavor market is fragmented and competitive, and the company positions itself as one of the largest producers of natural and synthetic colors in the world 1. The conversion of US food markets to natural colors could open significant opportunities for a supplier with extensive production capacity and know-how, such as this company 1.
Consumer demand depends on end customers who are sensitive to economic conditions and prices, while geopolitical conflicts and trade tariffs can change supply costs 12. The company's 2026 outlook is based on current market conditions and could be revised if those conditions change 3.
Trends
- Shift from synthetic to natural colorstailwind
Legislation in several US states and commitments by large companies to remove synthetic colorants are accelerating the move to natural colors, which require more colorant for the same effect 1. The company sees this as a major opportunity but one that requires investment in capacity and research 1.
- Tariffs and trade uncertaintymixed
Tariffs and trade barriers have raised production costs and led some customers to delay product launches, and the legality of some tariffs is in question, which could lead to refunds 1. In the second quarter of 2026, tariff refunds temporarily helped the gross margin 2.
- Pressure from raw material and energy costsheadwind
Rising raw material costs and supply chain disruptions, including effects of the conflicts in Ukraine and the Middle East, could reduce margins if they are not offset by pricing 12.
- Volume and price growth in 2026tailwind
Revenue in the first half of 2026 grew on higher volumes and prices across segments, and the company raised its 2026 outlook 23. If this momentum holds, it could support higher profitability 3.
Competitive position
The company notes it competes with many rivals, from large multinational companies to regional producers focused on a single product line 1. In colors, most competitors specialize either in natural colors and food coloring or in synthetic dyes and pigments, while the company considers itself the only major manufacturer with a full range of both 1.
In flavors, competition is based on customized ingredient development, quality, customer service and price, and customers do not usually buy all their flavors from one supplier 1. Competition is particularly tied to technical reliability and product quality in Asia Pacific 1.
- Multinational flavor and ingredient companies
Large companies with broad product portfolios and advanced technology, named by the company as principal competitors across product lines 1.
- Regional dehydrated vegetable producers
Large and small domestic competitors as well as foreign suppliers that compete on quality, service and price in dehydrated vegetables 1.
- European natural color producers
Companies specializing in natural colors and food coloring, especially in Europe, that compete directly with the company's natural color range 1.
- Synthetic dye and pigment producers
Specialized suppliers of synthetic dyes and pigments for food and industrial applications, a segment in which the company is also present 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Departure or appointment of officers
- Quarterly report30 Oct 2026
- Current report30 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report02 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report24 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report23 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report28 Apr 2026Shareholder vote
- Current report24 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Sensient Technologies Corporation · 13 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Sensient Technologies Corporation · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Sensient Technologies Corporation · 24 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.