STMICROELECTRONICS NV (STM.PA) Fundamental Analysis & Valuation

EPA:STM • NL0000226223

Current stock price

46.26 EUR
-0.78 (-1.66%)
Last:

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

5

1. STM.PA Profitability Analysis

1.1 Basic Checks

  • STM had positive earnings in the past year.
  • STM had a positive operating cash flow in the past year.
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

  • STM has a Return On Assets of 15.90%. This is in the better half of the industry: STM outperforms 70.83% of its industry peers.
  • The Return On Equity of STM (26.25%) is better than 64.58% of its industry peers.
  • The Return On Invested Capital of STM (21.37%) is better 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 14.74%.
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

  • The Profit Margin of STM (20.41%) is comparable to the rest of the industry.
  • 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.
  • STM has a Gross Margin of 43.75%. This is in the lower half of the industry: STM underperforms 62.50% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
  • 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.
  • The Debt to FCF ratio of STM (2.18) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.20 indicates that STM is not too dependend on debt financing.
  • STM has a Debt to Equity ratio of 0.20. This is in the better half 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.
  • 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 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

  • The Earnings Per Share has grown by an impressive 76.74% over the past year.
  • Measured over the past years, STM shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.47% on average per year.
  • STM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
  • The Revenue has been growing by 12.85% on average over the past years. This is quite good.
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.
  • Based on estimates for the next years, STM will show a quite strong growth in Revenue. The Revenue will grow by 10.85% on average per year.
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.
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

  • Based on the Price/Earnings ratio of 16.17, the valuation of STM can be described as correct.
  • STM's Price/Earnings ratio is a bit cheaper when compared to the industry. STM is cheaper than 68.75% of the companies in the same industry.
  • STM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.87.
  • Based on the Price/Forward Earnings ratio of 12.11, the valuation of STM can be described as correct.
  • STM's Price/Forward Earnings ratio is rather cheap when compared to the industry. STM is cheaper than 91.67% of the companies in the same industry.
  • STM is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
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 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STM indicates a rather cheap valuation: STM is cheaper than 85.42% of the companies listed in the same industry.
  • 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%

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

2

5. STM.PA Dividend Analysis

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 0.65.
  • 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 Number0 (-100%)
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 Fundamental Analysis FAQ

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

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


Can you provide the valuation status for STMICROELECTRONICS NV?

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


Can you provide the profitability details for STMICROELECTRONICS NV?

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


How financially healthy is STMICROELECTRONICS NV?

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


What is the earnings growth outlook for STMICROELECTRONICS NV?

The Earnings per Share (EPS) of STMICROELECTRONICS NV (STM.PA) is expected to grow by 83.51% in the next year.