STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
NYSE:STM - New York Stock Exchange, Inc. - US8610121027 - Currency: USD
Overall STM gets a fundamental rating of 5 out of 10. We evaluated STM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While STM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, STM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
STM had positive earnings in the past year.
In the past year STM had a positive cash flow from operations.
Each year in the past 5 years STM has been profitable.
In the past 5 years STM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.71%, STM is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
STM has a Return On Equity of 10.78%. This is in the better half of the industry: STM outperforms 69.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.82%, STM is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 10.58%.
The last Return On Invested Capital (7.82%) for STM is well below the 3 year average (17.62%), which needs to be investigated, but indicates that STM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROIC | 7.82% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.62%
ROIC(5y)15.94%
1.3 Margins
With a decent Profit Margin value of 14.97%, STM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
STM has a Operating Margin of 14.30%. This is in the better half of the industry: STM outperforms 71.82% of its industry peers.
In the last couple of years the Operating Margin of STM has grown nicely.
STM has a Gross Margin of 37.68%. This is in the lower half of the industry: STM underperforms 62.73% of its industry peers.
STM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.3% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.68% |
OM growth 3Y-10.49%
OM growth 5Y2.14%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STM is creating some value.
STM has a worse debt/assets ratio than last year.
2.2 Solvency
STM has an Altman-Z score of 4.29. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
STM has a Altman-Z score (4.29) which is comparable to the rest of the industry.
STM has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
STM has a Debt to Equity ratio of 0.07. This is comparable to the rest of the industry: STM outperforms 56.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.29 |
ROIC/WACC0.74
WACC10.62%
2.3 Liquidity
A Current Ratio of 2.60 indicates that STM has no problem at all paying its short term obligations.
STM has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.98 indicates that STM should not have too much problems paying its short term obligations.
STM has a Quick ratio (1.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.49%.
Measured over the past 5 years, STM shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
The Revenue for STM has decreased by -23.24% in the past year. This is quite bad
The Revenue has been growing slightly by 6.79% on average over the past years.
EPS 1Y (TTM)-69.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-87.04%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-27.36%
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 13.46% on average per year.
STM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.66% yearly.
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y13.46%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
Based on the Price/Earnings ratio of 27.12, the valuation of STM can be described as expensive.
71.82% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
STM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.53, the valuation of STM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, STM is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
STM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
STM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STM is cheaper than 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
The decent profitability rating of STM may justify a higher PE ratio.
STM's earnings are expected to grow with 14.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.56
EPS Next 2Y2.42%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.18, STM pays a better dividend. On top of this STM pays more dividend than 83.64% of the companies listed in the same industry.
With a Dividend Yield of 1.31, STM pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of STM has a limited annual growth rate of 0.51%.
STM has been paying a dividend for at least 10 years, so it has a reliable track record.
STM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.51%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
STM pays out 14.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of STM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.49%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
32.27
-0.87 (-2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners30.25%
Inst Owner Change0%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap29.41B
Analysts75.71
Price Target31.54 (-2.26%)
Short Float %1.56%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.25
Dividend Growth(5Y)0.51%
DP14.49%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.89%
Min EPS beat(2)2.3%
Max EPS beat(2)13.48%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-7.15%
Max EPS beat(4)13.48%
EPS beat(8)6
Avg EPS beat(8)3.97%
EPS beat(12)10
Avg EPS beat(12)8.21%
EPS beat(16)13
Avg EPS beat(16)7.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-2.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)-2.12%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
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)6.83%
PT rev (3m)0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 18.53 | ||
| P/S | 2.22 | ||
| P/FCF | N/A | ||
| P/OCF | 8.8 | ||
| P/B | 1.6 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)1.19
EY3.69%
EPS(NY)1.74
Fwd EY5.4%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.67
OCFY11.36%
SpS14.56
BVpS20.23
TBVpS18.27
PEG (NY)N/A
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROCE | 8.93% | ||
| ROIC | 7.82% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 12.52% | ||
| OM | 14.3% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.68% | ||
| FCFM | N/A |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.62%
ROIC(5y)15.94%
ROICexc(3y)24.97%
ROICexc(5y)22.5%
ROICexgc(3y)26.71%
ROICexgc(5y)25.25%
ROCE(3y)20.11%
ROCE(5y)18.19%
ROICexcg growth 3Y-22.68%
ROICexcg growth 5Y-8.51%
ROICexc growth 3Y-21.07%
ROICexc growth 5Y-6.8%
OM growth 3Y-10.49%
OM growth 5Y2.14%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 171.94% | ||
| Cap/Sales | 26.64% | ||
| Interest Coverage | 24.01 | ||
| Cash Conversion | 84.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 4.29 |
F-Score5
WACC10.62%
ROIC/WACC0.74
Cap/Depr(3y)232.76%
Cap/Depr(5y)199.58%
Cap/Sales(3y)26.55%
Cap/Sales(5y)22.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-87.04%
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y13.46%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-27.36%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y5.66%
EBIT growth 1Y-73.23%
EBIT growth 3Y-9.32%
EBIT growth 5Y9.07%
EBIT Next Year46.94%
EBIT Next 3Y39.3%
EBIT Next 5Y26.52%
FCF growth 1Y-113.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.5%
OCF growth 3Y-1.17%
OCF growth 5Y8.75%