News Image

When you look at NYSE:STM, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

By Mill Chart

Last update: Mar 13, 2024

Discover STMICROELECTRONICS NV-NY SHS (NYSE:STM), an undervalued stock highlighted by our stock screener. NYSE:STM showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NYSE:STM's Valuation Score

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:STM boasts a 7 out of 10:

  • The Price/Earnings ratio is 10.48, which indicates a very decent valuation of STM.
  • Based on the Price/Earnings ratio, STM is valued cheaply inside the industry as 96.23% of the companies are valued more expensively.
  • STM is valuated cheaply when we compare the Price/Earnings ratio to 26.07, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio, STM is valued cheaper than 91.51% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.37. STM is valued slightly cheaper when compared to this.
  • STM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STM is cheaper than 94.34% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, STM is valued cheaper than 80.19% of the companies in the same industry.
  • STM has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:STM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:STM, the assigned 9 is noteworthy for profitability:

  • STM has a better Return On Assets (17.88%) than 87.74% of its industry peers.
  • Looking at the Return On Equity, with a value of 27.47%, STM belongs to the top of the industry, outperforming 84.91% of the companies in the same industry.
  • The Return On Invested Capital of STM (25.82%) is better than 95.28% of its industry peers.
  • STM had an Average Return On Invested Capital over the past 3 years of 20.86%. This is significantly above the industry average of 11.60%.
  • The 3 year average ROIC (20.86%) for STM is below the current ROIC(25.82%), indicating increased profibility in the last year.
  • STM's Profit Margin of 23.70% is fine compared to the rest of the industry. STM outperforms 79.25% of its industry peers.
  • STM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 30.01%, STM belongs to the top of the industry, outperforming 89.62% of the companies in the same industry.
  • STM's Operating Margin has improved in the last couple of years.
  • In the last couple of years the Gross Margin of STM has grown nicely.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:STM has received a 7 out of 10:

  • An Altman-Z score of 5.65 indicates that STM is not in any danger for bankruptcy at the moment.
  • STM has a Altman-Z score of 5.65. This is in the better half of the industry: STM outperforms 65.09% of its industry peers.
  • The Debt to FCF ratio of STM is 1.50, which is an excellent value as it means it would take STM, only 1.50 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.50, STM is doing good in the industry, outperforming 71.70% of the companies in the same industry.
  • STM has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 2.15 indicates that STM has no problem at all paying its short term obligations.
  • The current and quick ratio evaluation for STM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How do we evaluate the Growth for NYSE:STM?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:STM has received a 6 out of 10:

  • The Earnings Per Share has grown by an impressive 52.63% over the past year.
  • The Earnings Per Share has been growing by 25.72% on average over the past years. This is a very strong growth
  • STM shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.51%.
  • STM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.33% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of STM

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

Back

STMICROELECTRONICS NV-NY SHS

NYSE:STM (5/24/2024, 7:04:01 PM)

After market: 41.89 0 (0%)

41.89

+0.19 (+0.46%)

STM News

News Image3 days ago - InvestorPlace3 Semiconductor Stocks to Buy Now: May 2024

With Nvidia posting blisteringly strong earnings, non-NVDA semiconductor stocks to buy could possibly tag along for the ride.

News Image5 days ago - STMicroelectronics N.V.All resolutions approved at the 2024 STMicroelectronics' Annual General Meeting of Shareholders
News Image7 days ago - STMicroelectronics N.V.STMicroelectronics Announces Status of Common Share Repurchase Program
News Image7 days ago - STMicroelectronics N.V.STMicroelectronics Announces Status of Common Share Repurchase Program

STMicroelectronics Announces Status ofCommon Share Repurchase Program Disclosure of Transactions in Own Shares – Period from May 13, 2024 to May 17, 2024 ...

News Image7 days ago - ChartmillNYSE:STM stands out as a stock that provides good value for the fundamentals it showcases.

Despite its impressive fundamentals, STMICROELECTRONICS NV-NY SHS (NYSE:STM) remains undervalued.

News Image10 days ago - InvestorPlaceWall Street Favorites: 3 Semiconductor Stocks With Strong Buy Ratings for May 2024

Although front-facing innovations hog up the spotlight, investors should consider these “background” semiconductor stocks to buy.

News Image10 days ago - BusinessInsiderWall Street Favorites: 3 Semiconductor Stocks With Strong Buy Ratings for May 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor stocks to buy: it’s the answer to the question, what do art...

News Image11 days ago - The Motley FoolForget Nvidia: 3 Semiconductor Stocks to Buy Instead

There are other promising semiconductor stocks than just Nvidia. Learn about these solid candidates for your portfolio -- including a powerful ETF.

News Image14 days ago - STMicroelectronics N.V.STMicroelectronics Announces Status of Common Share Repurchase Program
News Image21 days ago - STMicroelectronics N.V.STMicroelectronics Announces Status of Common Share Repurchase Program
News Image21 days ago - STMicroelectronics N.V.STMicroelectronics Announces Status of Common Share Repurchase Program

STMicroelectronics Announces Status ofCommon Share Repurchase Program Disclosure of Transactions in Own Shares – Period from Apr 29, 2024 to May 03, 2024 ...

News Image23 days ago - InvestorPlace3 Internet of Things (IoT) Stocks with the Potential to Make You an Overnight Millionaire

The market for IoT stocks could be worth about $3.37 trillion by 2031 as the use cases for the technology explodes.

STM Links
Follow us for more