STMICROELECTRONICS NV (STM.PA) Stock Fundamental Analysis
Europe - EPA:STM - NL0000226223 - Common Stock
46.26 EUR
-0.78 (-1.66%)
We assign a fundamental rating of 6 out of 10 to STM. STM was compared to 54 industry peers in the Semiconductors & Semiconductor Equipment industry. STM has an average financial health and profitability rating. STM is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make STM suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year STM was profitable.
In the past year STM had a positive cash flow from operations.
STM had positive earnings in 4 of the past 5 years.
Of the past 5 years STM 4 years had a positive operating cash flow.
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.
With a decent Return On Invested Capital value of 21.37%, STM is doing good in 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 15.08%.
| 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
Looking at the Profit Margin, with a value of 20.41%, STM is in line with its industry, outperforming 56.25% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
STM has a Operating Margin (25.31%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of STM has grown nicely.
STM's Gross Margin of 43.75% is on the low side compared to the rest of the industry. STM is outperformed by 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.
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.
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.
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.
STM's Debt to FCF ratio of 2.18 is in line compared 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 has a better Debt to Equity ratio (0.20) than 64.58% of its industry peers.
| 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.
STM has a Current ratio (2.28) which is in line with its industry peers.
A Quick Ratio of 1.65 indicates that STM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.65, STM perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.65 |
3. Growth
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.
STM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.47% yearly.
Looking at the last year, STM shows a quite strong growth in Revenue. The Revenue has grown by 18.70% in the last year.
Measured over the past years, STM shows a quite strong growth in Revenue. The Revenue has been growing by 12.85% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
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.
STM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.89.
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.
When comparing the Price/Forward Earnings ratio of STM to the average of the S&P500 Index (22.99), we can say STM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
STM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STM is cheaper than 85.42% of the companies in the same industry.
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.
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%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, STM is not a good candidate for dividend investing.
STM's Dividend Yield is comparable with the industry average which is at 1.08.
Compared to an average S&P500 Dividend Yield of 2.31, 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
7.56% of the earnings are spent on dividend by STM. This is a low number and 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
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 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
Graham NumberN/A
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
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 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%
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 of STMICROELECTRONICS NV (STM.PA) 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.
What is the valuation of STMICROELECTRONICS NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STMICROELECTRONICS NV (STM.PA) is 16.17 and the Price/Book (PB) ratio is 4.04.
Can you provide the dividend sustainability for STM stock?
The dividend rating of STMICROELECTRONICS NV (STM.PA) is 2 / 10 and the dividend payout ratio is 7.56%.