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ST (Sensata Technologies Holding) ROE % : 9.58% (As of Jun. 2024)


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What is Sensata Technologies Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sensata Technologies Holding's annualized net income for the quarter that ended in Jun. 2024 was $287 Mil. Sensata Technologies Holding's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $2,993 Mil. Therefore, Sensata Technologies Holding's annualized ROE % for the quarter that ended in Jun. 2024 was 9.58%.

The historical rank and industry rank for Sensata Technologies Holding's ROE % or its related term are showing as below:

ST' s ROE % Range Over the Past 10 Years
Min: -0.13   Med: 13.54   Max: 24.18
Current: 0.27

During the past 13 years, Sensata Technologies Holding's highest ROE % was 24.18%. The lowest was -0.13%. And the median was 13.54%.

ST's ROE % is ranked worse than
65.47% of 2392 companies
in the Hardware industry
Industry Median: 4.68 vs ST: 0.27

Sensata Technologies Holding ROE % Historical Data

The historical data trend for Sensata Technologies Holding's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sensata Technologies Holding ROE % Chart

Sensata Technologies Holding Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.91 6.22 12.54 10.01 -0.13

Sensata Technologies Holding Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.14 7.81 -26.01 10.19 9.58

Competitive Comparison of Sensata Technologies Holding's ROE %

For the Scientific & Technical Instruments subindustry, Sensata Technologies Holding's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sensata Technologies Holding's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sensata Technologies Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Sensata Technologies Holding's ROE % falls into.



Sensata Technologies Holding ROE % Calculation

Sensata Technologies Holding's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-3.909/( (3110.807+2996.276)/ 2 )
=-3.909/3053.5415
=-0.13 %

Sensata Technologies Holding's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=286.812/( (2974.834+3011.552)/ 2 )
=286.812/2993.193
=9.58 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Sensata Technologies Holding  (NYSE:ST) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=286.812/2993.193
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(286.812 / 4142.14)*(4142.14 / 7902.696)*(7902.696 / 2993.193)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.92 %*0.5241*2.6402
=ROA %*Equity Multiplier
=3.63 %*2.6402
=9.58 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=286.812/2993.193
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (286.812 / 395.932) * (395.932 / 533.752) * (533.752 / 4142.14) * (4142.14 / 7902.696) * (7902.696 / 2993.193)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7244 * 0.7418 * 12.89 % * 0.5241 * 2.6402
=9.58 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Sensata Technologies Holding ROE % Related Terms

Thank you for viewing the detailed overview of Sensata Technologies Holding's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sensata Technologies Holding Business Description

Traded in Other Exchanges
N/A
Address
529 Pleasant Street, Attleboro, MA, USA, 02703
Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata sells a bevy of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. The majority of the firm's revenue comes from the automotive market, where it focuses on bumper-in applications.
Executives
Martha N. Sullivan officer: Executive VP and COO 529 PLEASANT STREET, MS B-7, ATTLEBORO MA 02703
Brian K Roberts officer: EVP & Chief Financial Officer DIGITAS INC.,, 800 BOYLSTON STREET, BOSTON MA 02199
Jugal K. Vijayvargiya director C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098
Stephen M Zide director BAIN CAPITAL PARTNERS, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Brian John Wilkie officer: SVP - Sensing Solutions 529 PLEASANT STREET, ATTLEBORO MA 02703
Jennifer Lynn Slater officer: SVP - Performance Sensing Auto 5757 N GREEN BAY AVENUE FLORIST, TOWER MILWAUKEE WI 53209
Jeffrey J Cote officer: Executive VP and CFO C/O SENSATA TECHNOLOGIES, INC., 529 PLEASANT STREET, ATTLEBORO MA 02703
Maria G Freve officer: VP, Chief Accounting Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
David K Stott officer: VP, General Counsel 529 PLEASANT STREET, ATTLEBORO MA 02703
Paul S Vasington officer: Chief Financial Officer 529 PLEASANT STREET, ATTLEBORO MA 02703
Shannon M. Votava officer: SVP, Chief Legal Officer 2111 NORTH MOLTER ROAD, LIBERTY LAKE WA 99019
Vineet A Nargolwala officer: EVP, Sensing Solutions 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Yann L Etienvre officer: EVP, Chief SC Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
George Verras officer: SVP & Chief Technology Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Daniel Black director C/O ADVENT CAPITAL MANAGEMENT, LLC, 1065 AVENUE OF THE AMERICAS, 31ST FLOOR, NEW YORK NY 10018