STMICROELECTRONICS NV (STM.PA) Stock Fundamental Analysis
EPA:STM - Euronext Paris - Matif - NL0000226223 - Common Stock - Currency: EUR
STM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Semiconductors & Semiconductor Equipment industry. STM has only an average score on both its financial health and profitability. STM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make STM suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year STM was profitable.
STM had a positive operating cash flow in the past year.
Of the past 5 years STM 4 years were profitable.
STM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STM's Return On Assets of 15.90% is fine compared to the rest of the industry. STM outperforms 70.83% of its industry peers.
STM has a Return On Equity of 26.25%. This is in the better half of the industry: STM outperforms 64.58% of its industry peers.
STM has a better Return On Invested Capital (21.37%) than 70.83% of its industry peers.
STM had an Average Return On Invested Capital over the past 3 years of 21.52%. This is significantly above the industry average of 16.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | 26.25% | ||
| ROIC | 21.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.52%
ROIC(5y)N/A
1.3 Margins
STM has a Profit Margin of 20.41%. This is comparable to the rest of the industry: STM outperforms 56.25% of its industry peers.
STM's Profit Margin has improved in the last couple of years.
STM's Operating Margin of 25.31% is in line compared to the rest of the industry. STM outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of STM has grown nicely.
STM has a worse Gross Margin (43.75%) than 62.50% of its industry peers.
In the last couple of years the Gross Margin of STM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.31% | ||
| PM (TTM) | 20.41% | ||
| GM | 43.75% |
OM growth 3Y11.15%
OM growth 5Y31.46%
PM growth 3Y-7.35%
PM growth 5Y50.52%
GM growth 3Y2.45%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STM is creating value.
STM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
STM has an Altman-Z score of 5.94. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STM (5.94) is better than 64.58% of its industry peers.
STM has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as STM would need 2.18 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.18, STM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
STM has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, STM is doing good in the industry, outperforming 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 5.94 |
ROIC/WACC2.48
WACC8.6%
2.3 Liquidity
A Current Ratio of 2.28 indicates that STM has no problem at all paying its short term obligations.
With a Current ratio value of 2.28, STM perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
STM has a Quick Ratio of 1.65. This is a normal value and indicates that STM is financially healthy and should not expect problems in meeting its short term obligations.
STM has a Quick ratio of 1.65. This is comparable to the rest of the industry: STM outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.74% over the past year.
The Earnings Per Share has been growing by 50.47% on average over the past years. This is a very strong growth
Looking at the last year, STM shows a quite strong growth in Revenue. The Revenue has grown by 18.70% in the last year.
STM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.85% yearly.
EPS 1Y (TTM)76.74%
EPS 3Y15.01%
EPS 5Y50.47%
EPS Q2Q%109.09%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y9.71%
Revenue growth 5Y12.85%
Sales Q2Q%22.89%
3.2 Future
Based on estimates for the next years, STM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.34% on average per year.
STM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.85% yearly.
EPS Next Y83.51%
EPS Next 2Y37.07%
EPS Next 3Y25.67%
EPS Next 5Y11.34%
Revenue Next Year27.05%
Revenue Next 2Y16.06%
Revenue Next 3Y12.4%
Revenue Next 5Y10.85%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.17 indicates a correct valuation of STM.
Based on the Price/Earnings ratio, STM is valued a bit cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. STM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of STM.
Based on the Price/Forward Earnings ratio, STM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, STM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.61 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
STM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STM has a very decent profitability rating, which may justify a higher PE ratio.
STM's earnings are expected to grow with 25.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.32
EPS Next 2Y37.07%
EPS Next 3Y25.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, STM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.19, STM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, STM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STM pays out 7.56% of its income as dividend. This is a sustainable payout ratio.
DP7.56%
EPS Next 2Y37.07%
EPS Next 3Y25.67%
EPA:STM (3/10/2023, 7:00:00 PM)
46.26
-0.78 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.78B
Analysts75.65
Price Target56.87 (22.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP7.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.94%
Min EPS beat(2)20.24%
Max EPS beat(2)23.64%
EPS beat(4)3
Avg EPS beat(4)14.95%
Min EPS beat(4)-0.42%
Max EPS beat(4)23.64%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)99.27%
Min Revenue beat(2)99.27%
Max Revenue beat(2)99.27%
Revenue beat(4)2
Avg Revenue beat(4)95.59%
Min Revenue beat(4)91.9%
Max Revenue beat(4)99.27%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.28%
PT rev (3m)14.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 12.11 | ||
| P/S | 3.14 | ||
| P/FCF | 40.61 | ||
| P/OCF | 10.61 | ||
| P/B | 4.04 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)2.86
EY6.18%
EPS(NY)3.82
Fwd EY8.26%
FCF(TTM)1.14
FCFY2.46%
OCF(TTM)4.36
OCFY9.43%
SpS14.73
BVpS11.46
TBVpS9.64
PEG (NY)0.19
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | 26.25% | ||
| ROCE | N/A | ||
| ROIC | 21.37% | ||
| ROICexc | 28.07% | ||
| ROICexgc | 33.38% | ||
| OM | 25.31% | ||
| PM (TTM) | 20.41% | ||
| GM | 43.75% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.52%
ROIC(5y)N/A
ROICexc(3y)17.46%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y8.25%
ROICexcg growth 5Y30.31%
ROICexc growth 3Y8.93%
ROICexc growth 5Y31.87%
OM growth 3Y11.15%
OM growth 5Y31.46%
PM growth 3Y-7.35%
PM growth 5Y50.52%
GM growth 3Y2.45%
GM growth 5Y3.8%
F-Score9
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 220.07% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 37.89% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 5.94 |
F-Score9
WACC8.6%
ROIC/WACC2.48
Cap/Depr(3y)141.78%
Cap/Depr(5y)154.19%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)118.78%
Profit Quality(5y)107.58%
High Growth Momentum
Growth
EPS 1Y (TTM)76.74%
EPS 3Y15.01%
EPS 5Y50.47%
EPS Q2Q%109.09%
EPS Next Y83.51%
EPS Next 2Y37.07%
EPS Next 3Y25.67%
EPS Next 5Y11.34%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y9.71%
Revenue growth 5Y12.85%
Sales Q2Q%22.89%
Revenue Next Year27.05%
Revenue Next 2Y16.06%
Revenue Next 3Y12.4%
Revenue Next 5Y10.85%
EBIT growth 1Y81.81%
EBIT growth 3Y21.94%
EBIT growth 5Y48.36%
EBIT Next Year143.02%
EBIT Next 3Y40.91%
EBIT Next 5Y22.32%
FCF growth 1Y22.4%
FCF growth 3Y32.22%
FCF growth 5Y25.21%
OCF growth 1Y80.86%
OCF growth 3Y17.89%
OCF growth 5Y21.42%