Senstar Technologies (SNT) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Senstar Technologies (SNT) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Senstar Technologies Fundamentals
Stock Price Target: $5.92
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Senstar Technologies in comparison to the Electronics industry and the S&P 500.
Senstar Technologies is a Micro Cap company with a Market Cap of $62.7M.
How are investors using Senstar Technologies earnings yield to assess the company?
The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).
The current earnings yield for Senstar Technologies is 11.43%, in comparison to 3.39% for the S&P 500 and 1.76% for the 10-year treasury bond. The median earnings yield for the Electronics industry is 6.01%.
What does Senstar Technologies Price-to-Earnings Ratio (P/E) tell investors about the company?
The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings.
Senstar Technologies is currently trading at a P/E of 6.83. The P/E for the Electronics industry is 21.41 and the P/E for the S&P 500 is 29.46.
What is the current Price-to-Sales Ratio (P/S) for Senstar Technologies?
The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.
Senstar Technologies is currently trading at a P/S of 0.75. The P/S for the Electronics industry is 2.70 and the P/S for the S&P 500 is 3.20.
How does Senstar Technologies Price-to-BookRatio (P/B) compare to the Electronics industry?
Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.
Senstar Technologies P/B ratio is 0.91. The P/B for the Electronics industry is 4.54 and the P/B for the S&P 500 is 4.82.
How attractive is Senstar Technologies Return on Invested Capital (ROIC) to investors?
Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.
Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.
Senstar Technologies ROIC is currently -1.03% in comparison to 9.93% for the Electronics industry and 9.10% for the S&P 500.
How has SNT stock performed over the past year? What is the current analyst price target?
Over the past 52 weeks, Senstar Technologies has traded between the range of $2.61 and $4.29.
The current Analyst Price Target for Senstar Technologies is $5.92.
What is Senstar Technologies YOY Performance in comparison to its industry and the total market?
The YOY performance for Senstar Technologies is -6.56%. The Electronics industry has a YTD performance of 20.27% in comparison to the YTD S&P 500 performance of 23.23%.
Recent Financial Results (Q3 2021)
- Revenues up 9% to $25.9M for Q3 compared with comparable period in 2020
- Net income increased to $9.6M, up $1.2M in the 2020 period, reflecting income from discontinued operations
- EBITDA up 25% to $3.3M, compared with comparable period in 2020
- Completed a one-time cash distribution to shareholders in the amount of $1.725 per share (approximately $40M in the aggregate)
- Cash on balance sheet of $24M and zero debt
Stock Price Target: $5.92
Senstar Technologies develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and management systems, cyber security products and systems, and security video observation and surveillance systems. The company operates through two segments: Products and Projects. It offers perimeter security products that enable customers to monitor, limit, and control access by unauthorized personnel to specific regions or areas.
It sells its products through system integrators and distribution channels. The company was formerly known as Magal Security Systems Ltd. and changed its name to Senstar Technologies Ltd. in September 2021. Senstar Technologies Ltd. was founded in 1965 and is headquartered in Yehud, Israel. The current CEO is Fabien Haubert.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.