STMICROELECTRONICS NV (STM.PA) Stock Fundamental Analysis
Europe - EPA:STM - NL0000226223 - Common Stock
46.26 EUR
-0.78 (-1.66%)
Overall STM gets a fundamental rating of 6 out of 10. We evaluated STM against 59 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. With these ratings, STM could be worth investigating further 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.
Of the past 5 years STM 4 years were profitable.
Of the past 5 years STM 4 years had a positive operating cash flow.
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 Return On Invested Capital of 21.37%. This is in the better half of the industry: STM outperforms 70.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STM is significantly above the industry average of 15.39%.
| 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
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.
STM has a Operating Margin of 25.31%. This is comparable to the rest of the industry: STM outperforms 58.33% of its industry peers.
STM's Operating Margin has improved in the last couple of years.
The Gross Margin of STM (43.75%) is worse than 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
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.
With a decent Altman-Z score value of 5.94, STM is doing good in the industry, outperforming 64.58% of the companies in the same industry.
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 (2.18) which is comparable to the rest of the industry.
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 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 5.94 |
ROIC/WACC2.48
WACC8.6%
2.3 Liquidity
STM has a Current Ratio of 2.28. This indicates that STM is financially healthy and has no problem in meeting 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.
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 (1.65) which is in line with 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.
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.
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
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
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
Based on the Price/Earnings ratio of 16.17, the valuation of STM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of STM indicates a somewhat cheap valuation: STM is cheaper than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. STM is valued slightly cheaper when compared to this.
STM is valuated correctly with a Price/Forward Earnings ratio of 12.11.
Based on the Price/Forward Earnings ratio, STM is valued cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. STM is valued slightly cheaper when compared to this.
| 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 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
STM has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 1.10, STM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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
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%.