STMICROELECTRONICS NV (STM.PA) Stock Fundamental Analysis
Europe - EPA:STM - NL0000226223 - Common Stock
46.26 EUR
-0.78 (-1.66%)
Taking everything into account, STM scores 6 out of 10 in our fundamental rating. STM was compared to 56 industry peers in the Semiconductors & Semiconductor Equipment industry. STM has only an average score on both its financial health and profitability. STM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes STM very considerable for 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 better Return On Equity (26.25%) than 64.58% of its industry peers.
STM has a better Return On Invested Capital (21.37%) than 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 14.85%.
| 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 (20.41%) which is in line with its industry peers.
In the last couple of years the Profit Margin of STM has grown nicely.
With a Operating Margin value of 25.31%, STM perfoms like the industry average, outperforming 58.33% of the companies in the same 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.
STM's Gross Margin has improved in the last couple of years.
| 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
STM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 has a Debt to FCF ratio (2.18) which is in line with 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.
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.
The Current ratio of STM (2.28) is comparable to the rest of the industry.
A Quick Ratio of 1.65 indicates that STM should not have too much problems paying 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
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.17, STM is valued correctly.
68.75% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
STM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
STM is valuated correctly with a Price/Forward Earnings ratio of 12.11.
Based on the Price/Forward Earnings ratio, STM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
STM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| 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.
STM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.61 | ||
| EV/EBITDA | 8.61 |
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.
The decent profitability rating of STM 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.
STM's Dividend Yield is comparable with the industry average which is at 1.29.
With a Dividend Yield of 0.41, STM pays less dividend than the S&P500 average, which is at 2.38.
| 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%