Why Sensient Technologies Stock Is Soaring Today
Key Points
Sensient Technologies is a leading provider of colors, flavors, and specialty ingredients.
The company reported top- and bottom-line growth in Q3 2025.
Shares may seem expensive, but they're actually trading at a level consistent with its historical valuation.
Reporting year-over-year growth on both the top and bottom lines, Sensient Technologies (NYSE: SXT) posted third-quarter 2025 financial results before the bell rang this morning. The manufacturer of colors, flavors, and other specialty ingredients provided investors with some tasty results, leading investors to click the buy button.
As of 10:39 a.m. ET, shares of Sensient are up 12.4%.
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Sensient serves up some tasty Q3 results
Reporting revenue of $412.1 million in the third quarter 2025, a 5% year-over-year increase, Sensient achieved great success in growing profits.
During the recently completed quarter, Sensient expanded its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 19.5% from 17.6% in Q3 2024. This contributed to the company growing adjusted EBITDA in Q3 2025 to $80.5 million from $69.3 million during the same period last year, representing a 16.3% year-over-year increase.
Speaking on the company's strong performance last quarter, CEO Paul Manning stated, "Sensient's dedication to customer service while continuing to innovate and drive new sales wins has resulted in strong results. I remain very confident about our performance and am excited about the opportunities in front of us, particularly in natural colors."
Is Sensient stock still appetizing after its recent rise?
With shares of Sensient valued at 28.3 times trailing earnings, investors may surmise that the stock is pricey right now. When taking into account the fact that its five-year average P/E is 28.1, however, it becomes apparent that the stock isn't exorbitantly priced at all. Therefore, investors who find the company compelling shouldn't be scared off at the current valuation.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.