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Sensient TechnologiesSTU:SSF -0.93%80 ROE % is 16.60% as of Jun. 2026, which is 38% above its 10-year median of 12.00. GuruFocus rates STU:SSF with a GF Score™ of 80/100 and a GF Value™ of €74.73 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,582 Chemicals companies, Sensient Technologies ranks better than 81.48% on this metric.
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:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) 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.
* 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.
For the Specialty Chemicals subindustry, Sensient Technologies'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.
Sensient Technologies ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Sensient Technologies's ROE % 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 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. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sensient Technologies (STU:SSF) has a ROE % of 16.60% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sensient Technologies and its competitors. This is 38% above median its historical median of 12.00. Over the past decade, Sensient Technologies' ROE % has ranged from 9.10 to 18.38. According to the industry distribution chart, Sensient Technologies ranks #293 out of 1582 companies in the Chemicals industry, placing it in the top 18.5%.
Is Sensient Technologies' ROE % too high?
Sensient Technologies' current ROE % of 16.60% is 38% above median its 10-year median of 12.00. Over the past 10 years, this metric has ranged from a low of 9.10 to a high of 18.38. The Chemicals industry median ROE % is 5.34. Sensient Technologies' value of 16.60% is 210.9% above this industry median. Based on the distribution chart, Sensient Technologies ranks #293 out of 1582 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 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' ROE % compare to PRM and BCPC?
According to the Chemicals industry distribution chart, Sensient Technologies ranks #293 out of 1582 companies for ROE %. This places Sensient Technologies in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 5.34. Sensient Technologies' value of 16.60% is 210.9% above this benchmark. Historically, Sensient Technologies' own ROE % has ranged from 9.10 to 18.38 over the past decade. While the company's 10-year median is 12.00 vs. the industry median of 5.34, 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.34, based on 1,582 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sensient Technologies's current ROE % of 16.60% is 210.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sensient Technologies and its competitors. For the Chemicals industry, the median ROE % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensient Technologies's current ROE % is 16.60%, which is 38% above median its own 10-year median of 12.00. 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?
Based on GuruFocus' analysis, Sensient Technologies (STU:SSF) is currently considered Significantly Overvalued. The stock's GF Value™ is €74.73, compared to a current price of €107.00 — trading 43.2% above its estimated fair value. The current ROE % is 16.60%, which is 38% above median its 10-year median of 12.00 and 210.9% above the Chemicals industry median of 5.34. Sensient Technologies' overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Sensient Technologies (STU:SSF), the current ROE % is 16.60% as of Jun. 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 (STU:SSF) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of €107.00 is trading 43.2% above its estimated GF Value™ of €74.73.
GuruFocus considers Sensient Technologies to be Significantly Overvalued.
Key valuation signals for STU:SSF:
ROE %: 16.60% (38% above median its 10-year median of 12.00)
GF Value™: €74.73 vs. price of €107.00 (43.2% above fair value)
Industry Position: 210.9% above the Chemicals median (#293 of 1582)
No single metric tells the full story. See the STU:SSF 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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