Sensata Technologies Holding plc (ST) Bundle
A Brief History of Sensata Technologies
Company Overview
Sensata Technologies Holding plc, incorporated in England and Wales, specializes in the development of sensor and control solutions. As of 2024, the company operates in diverse sectors, including automotive, aerospace, and industrial markets.
Recent Financial Performance
For the three months ended September 30, 2024, Sensata reported net revenue of $982.8 million, a decrease from $1,001.3 million in the same period of 2023. The net loss for the quarter was $25.0 million, compared to net income of $62.8 million in the previous year.
For the nine months ended September 30, 2024, the company generated net revenue of $3.025 billion, down from $3.062 billion in 2023. Net income for this period was $122.7 million, a decline from $198.3 million in the prior year.
Operating Costs and Expenses
Operating costs for the three months ended September 30, 2024, totaled $1.182 billion, resulting in an operating loss of $199.2 million. This compares to operating income of $116.3 million in the same quarter of 2023.
For the nine months ended September 30, 2024, total operating costs were $2.950 billion, with operating income reported at $75.5 million, down from $383.1 million in the same period of 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue | $982.8 million | $1,001.3 million | $3.025 billion | $3.062 billion |
| Net Income | ($25.0 million) | $62.8 million | $122.7 million | $198.3 million |
| Operating Income | ($199.2 million) | $116.3 million | $75.5 million | $383.1 million |
| Operating Costs | $1.182 billion | $885.0 million | $2.950 billion | $2.678 billion |
Dividends and Share Repurchases
Sensata paid aggregate cash dividends of $54.3 million in the nine months ended September 30, 2024, compared to $53.4 million in the same period of 2023. On October 28, 2024, the Board of Directors approved a quarterly dividend of $0.12 per share, payable on November 27, 2024.
In the nine months ended September 30, 2024, the company repurchased approximately 1.3 million ordinary shares under its September 2023 Program for $48.8 million. In the same period of 2023, 1.5 million shares were repurchased for $60.3 million.
Debt and Liquidity
As of September 30, 2024, Sensata reported gross indebtedness of $3.2 billion. This includes long-term debt obligations such as the 4.375% Senior Notes maturing in 2030 and the 3.75% Senior Notes maturing in 2031, both totaling $750 million.
The company completed the issuance of 6.625% Senior Notes in June 2024, using proceeds to redeem its previous 5.0% Senior Notes in July 2024, thereby enhancing its liquidity position.
| Debt Component | Maturity Date | Amount |
|---|---|---|
| 5.0% Senior Notes | October 1, 2025 | $0 |
| 4.375% Senior Notes | February 15, 2030 | $450 million |
| 3.75% Senior Notes | February 15, 2031 | $750 million |
Recent Developments
In August 2024, Sensata executed a purchase agreement to sell its Insights Business for $165 million, recognizing a loss on sale of approximately $110.1 million. This transaction is part of the company's strategic realignment to focus on core business segments.
The company's restructuring efforts included a goodwill impairment charge of $150.1 million, reflecting challenges in the market and operational adjustments.
A Who Owns Sensata Technologies Holding plc (ST)
Ownership Structure
As of 2024, Sensata Technologies Holding plc (ST) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 5.8% |
| Mutual Fund | Invesco Ltd. | 4.1% |
| Individual Investor | Various | 74.4% |
Major Shareholder Analysis
The largest shareholders are primarily institutional investors, which collectively hold approximately 25.6% of the company's shares. The remaining shares are widely held by individual investors, reflecting a broad base of ownership.
Recent Stock Performance
As of September 30, 2024, the stock price of Sensata Technologies was $25.50, showing a year-to-date increase of 12%. The market capitalization was reported at approximately $4.5 billion.
Financial Overview
For the nine months ending September 30, 2024, Sensata Technologies reported:
- Net Revenue: $3.025 billion
- Operating Income: $75.5 million
- Net Income: $122.7 million
- Diluted Earnings Per Share: $0.81
Share Buyback Program
In September 2023, the company authorized a new share repurchase program of $500 million. As of September 30, 2024, approximately $423.1 million remains available for repurchase under this program. In the third quarter of 2024, the company repurchased 1.1 million shares for $38.7 million.
Dividend Information
In the nine months ended September 30, 2024, Sensata Technologies paid dividends totaling $54.3 million. The latest quarterly dividend of $0.12 per share was announced on October 28, 2024, payable on November 27, 2024.
Debt Structure
As of September 30, 2024, Sensata Technologies has long-term debt of approximately $3.17 billion, with a net leverage ratio of 3.0x. The debt includes:
| Debt Type | Amount ($ million) | Maturity Date |
|---|---|---|
| 4.375% Senior Notes | 450 | February 15, 2030 |
| 3.75% Senior Notes | 750 | February 15, 2031 |
| 4.0% Senior Notes | 1,000 | April 15, 2029 |
| 5.875% Senior Notes | 500 | September 1, 2030 |
| 6.625% Senior Notes | 500 | July 15, 2032 |
These figures reflect the ongoing financial management strategies of Sensata Technologies, aimed at maintaining liquidity and financial stability amid market fluctuations.
Sensata Technologies Holding plc (ST) Mission Statement
Mission Statement Overview
The mission of Sensata Technologies Holding plc is to deliver innovative sensor solutions that enable a safer, cleaner, and more efficient world. The company focuses on providing high-quality sensing solutions across various industries, including automotive, aerospace, and industrial markets.
Financial Performance and Key Metrics
As of the third quarter of 2024, Sensata Technologies reported a net revenue of $982.8 million, reflecting a decrease of 1.8% compared to the prior year period. The company’s net income for the same period was reported at a loss of $25.0 million, representing a net income margin of -2.5%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $982.8 million | $1,001.3 million | -1.8% |
| Net (Loss)/Income | $(25.0) million | $62.8 million | -139.9% |
| Operating (Loss)/Income | $(199.2) million | $116.3 million | -271.4% |
| Operating Cash Flows | $380.8 million | $351.6 million | 8.7% |
| Capital Expenditures | $126.8 million | $136.2 million | -6.9% |
| Dividends Paid | $54.3 million | $53.4 million | 1.7% |
Segment Performance
Sensata operates within two primary segments: Performance Sensing and Sensing Solutions. In Q3 2024, Performance Sensing generated net revenue of $659.7 million, which accounts for 67.1% of total net revenue, while Sensing Solutions contributed $274.4 million, or 27.9%.
| Segment | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Performance Sensing | $659.7 million | $696.8 million | -5.3% |
| Sensing Solutions | $274.4 million | $275.1 million | -0.3% |
| Other | $48.8 million | $29.3 million | 66.5% |
Recent Developments
In August 2024, Sensata executed a purchase agreement to sell its Insights Business for a total purchase price of $165.0 million, with a loss on sale recognized of approximately $110.1 million. This strategic move is part of the company's ongoing efforts to streamline operations and focus on core sensing technologies.
Shareholder Returns
As of September 30, 2024, Sensata Technologies had repurchased 1.3 million ordinary shares for a total of $48.8 million under its September 2023 share repurchase program. The company announced a quarterly dividend of $0.12 per share, payable on November 27, 2024.
| Shareholder Returns | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Repurchased | 1.3 million | 1.5 million |
| Total Cost of Repurchases | $48.8 million | $60.3 million |
| Dividends Paid | $54.3 million | $53.4 million |
| Available for Repurchase | $423.1 million | $500.0 million |
Conclusion on Mission Alignment
Sensata Technologies’ mission to provide innovative sensing solutions is evident in its strategic decisions and financial performance. The company continues to adapt and evolve in response to market demands while maintaining a focus on delivering value to its shareholders.
How Sensata Technologies Holding plc (ST) Works
Company Overview
Sensata Technologies Holding plc (ST) is a global leader in sensor and control technologies, serving multiple industries, including automotive, aerospace, and industrial. The company focuses on providing innovative solutions that enhance safety, efficiency, and performance across its product offerings.
Financial Performance
For the three months ended September 30, 2024, Sensata reported:
- Net revenue of $982.8 million, a decrease of 1.8% compared to $1,001.3 million in the prior period.
- Operating loss of $199.2 million (20.3% of net revenue), a decrease from operating income of $116.3 million (11.6% of net revenue) in the same quarter of 2023.
- Net loss of $25.0 million, compared to net income of $62.8 million in Q3 2023.
For the nine months ended September 30, 2024:
- Net revenue of $3,025.1 million, a decrease of 1.2% compared to $3,061.6 million in the previous year.
- Operating income of $75.5 million (2.5% of net revenue), down from $383.1 million (12.5% of net revenue) in the same period of 2023.
- Net income of $122.7 million, compared to $198.3 million in the prior period.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-to-Date 2024 Revenue (in millions) | Year-to-Date 2023 Revenue (in millions) |
|---|---|---|---|---|
| Performance Sensing | $659.7 | $696.8 | $2,096.9 | $2,058.2 |
| Sensing Solutions | $274.4 | $275.1 | $800.3 | $889.6 |
| Other | $48.8 | $29.3 | $127.9 | $113.8 |
| Total | $982.8 | $1,001.3 | $3,025.1 | $3,061.6 |
Operating Costs and Expenses
For the three months ended September 30, 2024:
- Cost of revenue: $701.5 million (71.4% of net revenue)
- Research and development: $42.7 million (4.3% of net revenue)
- Selling, general and administrative: $102.5 million (10.4% of net revenue)
- Amortization of intangible assets: $44.7 million (4.6% of net revenue)
- Goodwill impairment charge: $150.1 million (15.3% of net revenue)
- Restructuring and other charges, net: $140.6 million (14.3% of net revenue)
Cash Flow and Capital Expenditures
In the nine months ended September 30, 2024, Sensata generated:
- Operating cash flows of $380.8 million
- Capital expenditures of approximately $126.8 million
- Cash dividends paid of $54.3 million
- Share repurchases totaling $47.3 million
Debt and Leverage
As of September 30, 2024:
- Total gross indebtedness was $3.2 billion.
- Net leverage ratio stood at 3.0x.
- Long-term debt included:
- 4.375% Senior Notes: $450.0 million
- 3.75% Senior Notes: $750.0 million
- 5.0% Senior Notes: $0 (redeemed in July 2024)
Market Strategy and Operations
Sensata focuses on innovation in sensor technologies, with a significant emphasis on:
- Enhancing product offerings in the automotive sector, particularly for electric and hybrid vehicles.
- Expanding its presence in aerospace and industrial markets through targeted acquisitions and partnerships.
- Leveraging data analytics to improve product performance and customer insights.
Recent Developments
In August 2024, Sensata agreed to sell its Insights Business for a total purchase price of $165.0 million, recognizing a loss on sale of approximately $110.1 million.
The company also recorded a goodwill impairment charge of $150.1 million related to its Dynapower business during the third quarter of 2024.
How Sensata Technologies Holding plc (ST) Makes Money
Revenue Streams
Sensata Technologies generates revenue through two primary segments: Performance Sensing and Sensing Solutions. For the nine months ended September 30, 2024, the total net revenue was $3,025.1 million, a decrease of 1.2% compared to $3,061.6 million for the same period in 2023.
| Segment | Net Revenue (2024) | Net Revenue (2023) | Change (%) |
|---|---|---|---|
| Performance Sensing | $2,096.9 million | $2,058.2 million | +1.9% |
| Sensing Solutions | $800.3 million | $889.6 million | -10.0% |
| Other | $127.9 million | $113.8 million | +12.1% |
| Total | $3,025.1 million | $3,061.6 million | -1.2% |
Operating Costs and Expenses
The operating costs for the nine months ended September 30, 2024, totaled $2,949.6 million, which was an increase from $2,678.5 million in the previous year. Significant costs included:
- Cost of Revenue: $2,115.1 million
- Research and Development: $133.3 million
- Selling, General and Administrative: $283.8 million
- Amortization of Intangible Assets: $122.3 million
- Goodwill Impairment Charge: $150.1 million
- Restructuring and Other Charges: $144.9 million
| Cost Type | Cost Amount (2024) | Cost Amount (2023) |
|---|---|---|
| Cost of Revenue | $2,115.1 million | $2,090.5 million |
| Research and Development | $133.3 million | $136.2 million |
| Selling, General and Administrative | $283.8 million | $263.1 million |
| Amortization of Intangible Assets | $122.3 million | $135.3 million |
| Goodwill Impairment Charge | $150.1 million | $0 |
| Restructuring and Other Charges | $144.9 million | $53.3 million |
Operating Income and Loss
For the nine months ended September 30, 2024, Sensata reported an operating income of $75.5 million, a decrease of 80.3% compared to $383.1 million in 2023. The operating loss for Q3 2024 was $199.2 million, a significant decline from the operating income of $116.3 million in Q3 2023.
| Period | Operating Income (2024) | Operating Income (2023) |
|---|---|---|
| Q3 | $(199.2) million | $116.3 million |
| Nine Months | $75.5 million | $383.1 million |
Cash Flow Analysis
Operating cash flows for the nine months ended September 30, 2024, amounted to $380.8 million, an increase from $351.6 million in 2023. The company ended the quarter with $506.2 million in cash and cash equivalents.
| Cash Flow Type | Cash Flow Amount (2024) | Cash Flow Amount (2023) |
|---|---|---|
| Operating Activities | $380.8 million | $351.6 million |
| Investing Activities | $15.2 million | $(117.6 million) |
| Financing Activities | $(400.3 million) | $(569.8 million) |
Debt Management
As of September 30, 2024, Sensata had $3.2 billion in gross indebtedness. In June 2024, they issued 6.625% Senior Notes, using the proceeds to redeem the 5.0% Senior Notes. The net leverage ratio was reported at 3.0x.
| Debt Type | Amount (2024) | Maturity |
|---|---|---|
| 6.625% Senior Notes | $500.0 million | Not specified |
| 5.0% Senior Notes | $700.0 million | Redeemed |
Dividends and Share Repurchases
Sensata paid cash dividends of $54.3 million during the nine months ended September 30, 2024, compared to $53.4 million in the same period of 2023. In the same period, the company repurchased shares worth approximately $47.3 million.
| Activity | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash Dividends Paid | $54.3 million | $53.4 million |
| Share Repurchases | $47.3 million | $60.3 million |
Sensata Technologies Holding plc (ST) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Sensata Technologies Holding plc (ST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sensata Technologies Holding plc (ST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sensata Technologies Holding plc (ST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.