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ST (Sensata Technologies Holding) Altman Z-Score : 1.76 (As of Oct. 31, 2024)


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What is Sensata Technologies Holding Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 1.78 is in distress zone. This implies bankruptcy possibility in the next two years.

Sensata Technologies Holding has a Altman Z-Score of 1.76, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Sensata Technologies Holding's Altman Z-Score or its related term are showing as below:

ST' s Altman Z-Score Range Over the Past 10 Years
Min: 1.71   Med: 2.19   Max: 2.7
Current: 1.78

During the past 13 years, Sensata Technologies Holding's highest Altman Z-Score was 2.70. The lowest was 1.71. And the median was 2.19.


Sensata Technologies Holding Altman Z-Score Historical Data

The historical data trend for Sensata Technologies Holding's Altman Z-Score 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 Altman Z-Score Chart

Sensata Technologies Holding Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 2.05 2.39 1.94 1.96

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
Altman Z-Score 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 2.19 2.03 1.96 1.97 1.82

Competitive Comparison of Sensata Technologies Holding's Altman Z-Score

For the Scientific & Technical Instruments subindustry, Sensata Technologies Holding's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sensata Technologies Holding's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Sensata Technologies Holding's Altman Z-Score falls into.



Sensata Technologies Holding Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Sensata Technologies Holding's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1439+1.4*0.2931+3.3*0.0268+0.6*1.0012+1.0*0.4928
=1.76

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $8,189 Mil.
Total Current Assets was $2,700 Mil.
Total Current Liabilities was $1,521 Mil.
Retained Earnings was $2,400 Mil.
Pre-Tax Income was 98.983 + 98.591 + -241.954 + 80.669 = $36 Mil.
Interest Expense was -40.863 + -38.395 + -67.08 + -36.908 = $-183 Mil.
Revenue was 1035.535 + 1006.709 + 992.494 + 1001.302 = $4,036 Mil.
Market Cap (Today) was $5,184 Mil.
Total Liabilities was $5,178 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2699.604 - 1521.459)/8189.442
=0.1439

X2=Retained Earnings/Total Assets
=2400.196/8189.442
=0.2931

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(36.289 - -183.246)/8189.442
=0.0268

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5183.883/5177.89
=1.0012

X5=Revenue/Total Assets
=4036.04/8189.442
=0.4928

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Sensata Technologies Holding has a Altman Z-Score of 1.76 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Sensata Technologies Holding  (NYSE:ST) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Sensata Technologies Holding Altman Z-Score Related Terms

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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