Sensient TechnologiesMEX:SXT 80 Return-on-Tangible-Equity is 23.32% as of Mar. 2026, which is 8% above its 10-year median of 21.55. GuruFocus rates MEX:SXT with a GF Score™ of 80/100 and a GF Value™ of MXN965.35. The stock has 8 warning signs investors should review. Among 1,566 Chemicals companies, Sensient Technologies ranks better than 88.76% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sensient Technologies's annualized net income for the quarter that ended in Mar. 2026 was MXN3,186 Mil. Sensient Technologies's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN13,661 Mil. Therefore, Sensient Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.32%.
The historical rank and industry rank for Sensient Technologies's Return-on-Tangible-Equity or its related term are showing as below:
MEX:SXT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.8 Med: 21.55 Max: 36.55
Current: 19.97
During the past 13 years, Sensient Technologies's highest Return-on-Tangible-Equity was 36.55%. The lowest was 15.80%. And the median was 21.55%.
MEX:SXT's Return-on-Tangible-Equity is ranked better than 88.76% of 1566
companies
in the Chemicals industry
Industry Median: 5.69
vs MEX:SXT: 19.97
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Sensient Technologies Return-on-Tangible-Equity Related Terms
Sensient Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sensient Technologies's Return-on-Tangible-Equity 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.
MEX:SXT vs CBT, BCPC, PRM: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Sensient Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Sensient Technologies Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sensient Technologies's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.32% mean?
Sensient Technologies (MEX:SXT) has a Return-on-Tangible-Equity of 23.32% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sensient Technologies and its competitors. This is near median its historical median of 21.55. Over the past decade, Sensient Technologies' Return-on-Tangible-Equity has ranged from 15.80 to 36.55. According to the industry distribution chart, Sensient Technologies ranks #176 out of 1566 companies in the Chemicals industry, placing it in the top 11.2%.
Is Sensient Technologies' Return-on-Tangible-Equity too high?
Sensient Technologies' current Return-on-Tangible-Equity of 23.32% is near median its 10-year median of 21.55. Over the past 10 years, this metric has ranged from a low of 15.80 to a high of 36.55. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Sensient Technologies' value of 23.32% is 309.8% above this industry median. Based on the distribution chart, Sensient Technologies ranks #176 out of 1566 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sensient Technologies has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' Return-on-Tangible-Equity compare to CBT and BCPC?
According to the Chemicals industry distribution chart, Sensient Technologies ranks #176 out of 1566 companies for Return-on-Tangible-Equity. This places Sensient Technologies in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.69. Sensient Technologies' value of 23.32% is 309.8% above this benchmark. Historically, Sensient Technologies' own Return-on-Tangible-Equity has ranged from 15.80 to 36.55 over the past decade. While the company's 10-year median is 21.55 vs. the industry median of 5.69, Sensient Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,566 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sensient Technologies's current Return-on-Tangible-Equity of 23.32% is 309.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sensient Technologies and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensient Technologies's current Return-on-Tangible-Equity is 23.32%, which is near median its own 10-year median of 21.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensient Technologies stock overvalued right now?
Sensient Technologies (MEX:SXT) has a current Return-on-Tangible-Equity of 23.32%. The stock's GF Value™ is MXN965.35, compared to a current price of MXN1,400.00 — trading 45% above its estimated fair value. The current Return-on-Tangible-Equity is 23.32%, which is near median its 10-year median of 21.55 and 309.8% above the Chemicals industry median of 5.69. Sensient Technologies' overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sensient Technologies (MEX:SXT), the current Return-on-Tangible-Equity is 23.32% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sensient Technologies (MEX:SXT) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of MXN1,400.00 is trading 45% above its estimated GF Value™ of MXN965.35.
Key valuation signals for MEX:SXT:
Return-on-Tangible-Equity: 23.32% (near median its 10-year median of 21.55)
GF Value™: MXN965.35 vs. price of MXN1,400.00 (45% above fair value)
Industry Position: 309.8% above the Chemicals median (#176 of 1566)
No single metric tells the full story. See the MEX:SXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company's reportable segments are: Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
80GF Score
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