STMICROELECTRONICS NV (STM.PA) Fundamental Analysis & Valuation

EPA:STM • NL0000226223

46.26 EUR
-0.78 (-1.66%)
Last: Mar 10, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This STM.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Taking everything into account, STM scores 6 out of 10 in our fundamental rating. STM was compared to 64 industry peers in the Semiconductors & Semiconductor Equipment industry. STM has an average financial health and profitability rating. STM is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes STM very considerable for growth investing!


Dividend Valuation Growth Profitability Health

5

1. STM.PA Profitability Analysis

1.1 Basic Checks

  • STM had positive earnings in the past year.
  • In the past year STM had a positive cash flow from operations.
STM.PA Yearly Net Income VS EBIT VS OCF VS FCFSTM.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 1B 2B 3B

1.2 Ratios

  • With a decent Return On Assets value of 15.90%, STM is doing good in the industry, outperforming 70.83% of the companies in the same industry.
  • The Return On Equity of STM (26.25%) is better than 64.58% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.37%, STM is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for STM is significantly above the industry average of 15.14%.
Industry RankSector 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
STM.PA Yearly ROA, ROE, ROICSTM.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 5 10 15 20

1.3 Margins

  • STM has a Profit Margin (20.41%) which is in line with its industry peers.
  • STM's Profit Margin has improved in the last couple of years.
  • With a Operating Margin value of 25.31%, STM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
  • STM's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 43.75%, STM is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of STM has grown nicely.
Industry RankSector 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%
STM.PA Yearly Profit, Operating, Gross MarginsSTM.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 10 20 30

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6

2. STM.PA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STM is creating value.
  • There is no outstanding debt for STM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
STM.PA Yearly Shares OutstandingSTM.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M
STM.PA Yearly Total Debt VS Total AssetsSTM.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 5.94 indicates that STM is not in any danger for bankruptcy at the moment.
  • STM has a Altman-Z score of 5.94. This is in the better half of the industry: STM outperforms 64.58% of its industry peers.
  • The Debt to FCF ratio of STM is 2.18, which is a good value as it means it would take STM, 2.18 years of fcf income to pay off all of its debts.
  • STM has a Debt to FCF ratio of 2.18. This is comparable to the rest of the industry: STM outperforms 50.00% of its industry peers.
  • STM has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
  • STM's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. STM outperforms 64.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 2.18
Altman-Z 5.94
ROIC/WACC2.48
WACC8.6%
STM.PA Yearly LT Debt VS Equity VS FCFSTM.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.28 indicates that STM has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.28, STM is in line with its industry, outperforming 47.92% of the companies in the same industry.
  • A Quick Ratio of 1.65 indicates that STM should not have too much problems paying its short term obligations.
  • The Quick ratio of STM (1.65) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.28
Quick Ratio 1.65
STM.PA Yearly Current Assets VS Current LiabilitesSTM.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. STM.PA Growth Analysis

3.1 Past

  • STM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.74%, which is quite impressive.
  • 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

  • STM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.34% yearly.
  • The Revenue is expected to grow by 10.85% on average over the next years. This is quite good.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
STM.PA Yearly Revenue VS EstimatesSTM.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
STM.PA Yearly EPS VS EstimatesSTM.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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6

4. STM.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • STM is valuated correctly with a Price/Earnings ratio of 16.17.
  • Based on the Price/Earnings ratio, STM is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, STM is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 12.11, STM is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of STM indicates a rather cheap valuation: STM is cheaper than 91.67% of the companies listed in the same industry.
  • STM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 16.17
Fwd PE 12.11
STM.PA Price Earnings VS Forward Price EarningsSTM.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 85.42% of the companies in the same industry are more expensive than STM, based on the Enterprise Value to EBITDA ratio.
  • STM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 40.61
EV/EBITDA 8.61
STM.PA Per share dataSTM.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as STM's earnings are expected to grow with 25.67% in the coming years.
PEG (NY)0.19
PEG (5Y)0.32
EPS Next 2Y37.07%
EPS Next 3Y25.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. STM.PA Dividend Analysis

5.1 Amount

  • STM has a yearly dividend return of 0.41%, which is pretty low.
  • STM's Dividend Yield is comparable with the industry average which is at 0.67.
  • With a Dividend Yield of 0.41, STM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector 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%
STM.PA Yearly Income VS Free CF VS DividendSTM.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 500M 1B 1.5B
STM.PA Dividend Payout.STM.PA Dividend Payout, showing the Payout Ratio.STM.PA Dividend Payout.PayoutRetained Earnings

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STM.PA Fundamentals: All Metrics, Ratios and Statistics

STMICROELECTRONICS NV

EPA:STM (3/10/2023, 7:00:00 PM)

46.26

-0.78 (-1.66%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)N/A
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.78B
Revenue(TTM)14.14B
Net Income(TTM)2.88B
Analysts75.65
Price Target56.87 (22.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y8.25%
ROICexgc 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 RankSector 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%

STMICROELECTRONICS NV / STM.PA FAQ

What is the ChartMill fundamental rating of STMICROELECTRONICS NV (STM.PA) stock?

ChartMill assigns a fundamental rating of 7 / 10 to STM.PA.


What is the valuation status for STM stock?

ChartMill assigns a valuation rating of 7 / 10 to STMICROELECTRONICS NV (STM.PA). This can be considered as Undervalued.


How profitable is STMICROELECTRONICS NV (STM.PA) stock?

STMICROELECTRONICS NV (STM.PA) has a profitability rating of 8 / 10.


Can you provide the financial health for STM stock?

The financial health rating of STMICROELECTRONICS NV (STM.PA) is 7 / 10.


How sustainable is the dividend of STMICROELECTRONICS NV (STM.PA) stock?

The dividend rating of STMICROELECTRONICS NV (STM.PA) is 2 / 10 and the dividend payout ratio is 7.56%.