STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - NYSE:STM - US8610121027
28.79 USD
-0.1 (-0.35%)
28.51 USD
-0.28 (-0.97%)
We assign a fundamental rating of 5 out of 10 to STM. STM was compared to 112 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. STM is valied quite expensively at the moment, while it does show a decent growth rate.
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.
STM had positive earnings in each of the past 5 years.
Each year in the past 5 years STM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.42%, STM perfoms like the industry average, outperforming 59.82% of the companies in the same industry.
STM has a Return On Equity of 4.84%. This is in the better half of the industry: STM outperforms 62.50% of its industry peers.
STM has a Return On Invested Capital (3.12%) which is comparable to the rest of the industry.
STM had an Average Return On Invested Capital over the past 3 years of 17.60%. This is significantly above the industry average of 10.95%.
The last Return On Invested Capital (3.12%) for STM is well below the 3 year average (17.60%), which needs to be investigated, but indicates that STM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 4.84% | ||
| ROIC | 3.12% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.6%
ROIC(5y)15.93%
1.3 Margins
With a decent Profit Margin value of 7.65%, STM is doing good in the industry, outperforming 65.18% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
The Operating Margin of STM (6.48%) is comparable to the rest of the industry.
STM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.96%, STM is not doing good in the industry: 66.96% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of STM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.48% | ||
| PM (TTM) | 7.65% | ||
| GM | 32.96% |
OM growth 3Y-10.78%
OM growth 5Y1.94%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
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.
Compared to 1 year ago, STM has less shares outstanding
The number of shares outstanding for STM has been increased compared to 5 years ago.
The debt/assets ratio for STM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.53 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score (3.53) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.06 indicates that STM is not too dependend on debt financing.
STM has a Debt to Equity ratio (0.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.53 |
ROIC/WACC0.33
WACC9.55%
2.3 Liquidity
A Current Ratio of 2.32 indicates that STM has no problem at all paying its short term obligations.
With a Current ratio value of 2.32, STM is not doing good in the industry: 65.18% of the companies in the same industry are doing better.
STM has a Quick Ratio of 1.66. This is a normal value and indicates that STM is financially healthy and should not expect problems in meeting its short term obligations.
STM's Quick ratio of 1.66 is on the low side compared to the rest of the industry. STM is outperformed by 66.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for STM have decreased strongly by -72.98% in the last year.
The Earnings Per Share has been growing slightly by 7.62% on average over the past years.
STM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -50.57%.
The Revenue has been growing slightly by 6.79% on average over the past years.
EPS 1Y (TTM)-72.98%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-84.21%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
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 13.83% yearly.
Based on estimates for the next years, STM will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y-61.83%
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
EPS Next 5Y13.83%
Revenue Next Year-11.02%
Revenue Next 2Y0.13%
Revenue Next 3Y3.83%
Revenue Next 5Y6.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
STM is valuated quite expensively with a Price/Earnings ratio of 33.09.
72.32% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.86, STM is valued at the same level.
A Price/Forward Earnings ratio of 19.23 indicates a rather expensive valuation of STM.
STM's Price/Forward Earnings ratio is rather cheap when compared to the industry. STM is cheaper than 82.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. STM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaper than 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
The decent profitability rating of STM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.34
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
STM's Dividend Yield is rather good when compared to the industry average which is at 2.15. STM pays more dividend than 85.71% of the companies in the same industry.
With a Dividend Yield of 1.46, STM pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of STM has a limited annual growth rate of 5.99%.
STM has paid a dividend for at least 10 years, which is a reliable track record.
STM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.99%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
STM pays out 35.28% 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.
DP35.28%
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
28.79
-0.1 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.22%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap26.24B
Analysts76
Price Target33.37 (15.91%)
Short Float %2.26%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.32
Dividend Growth(5Y)5.99%
DP35.28%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)29.91%
Min EPS beat(2)-23.85%
Max EPS beat(2)83.68%
EPS beat(4)3
Avg EPS beat(4)18.9%
Min EPS beat(4)-23.85%
Max EPS beat(4)83.68%
EPS beat(8)6
Avg EPS beat(8)11.17%
EPS beat(12)9
Avg EPS beat(12)9.93%
EPS beat(16)12
Avg EPS beat(16)10.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.94%
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)4.45%
PT rev (3m)5.78%
EPS NQ rev (1m)2.35%
EPS NQ rev (3m)-19.59%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-19.59%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)5.61%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 19.23 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | 9.76 | ||
| P/B | 1.4 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)0.87
EY3.02%
EPS(NY)1.5
Fwd EY5.2%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY10.25%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)4.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 4.84% | ||
| ROCE | 3.56% | ||
| ROIC | 3.12% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 4.77% | ||
| OM | 6.48% | ||
| PM (TTM) | 7.65% | ||
| GM | 32.96% | ||
| FCFM | N/A |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.6%
ROIC(5y)15.93%
ROICexc(3y)24.94%
ROICexc(5y)22.48%
ROICexgc(3y)26.67%
ROICexgc(5y)25.23%
ROCE(3y)20.08%
ROCE(5y)18.18%
ROICexcg growth 3Y-22.92%
ROICexcg growth 5Y-8.68%
ROICexc growth 3Y-21.32%
ROICexc growth 5Y-6.98%
OM growth 3Y-10.78%
OM growth 5Y1.94%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 137.82% | ||
| Cap/Sales | 24.1% | ||
| Interest Coverage | 9.72 | ||
| Cash Conversion | 94.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 3.53 |
F-Score6
WACC9.55%
ROIC/WACC0.33
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)-72.98%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-84.21%
EPS Next Y-61.83%
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
EPS Next 5Y13.83%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
Revenue Next Year-11.02%
Revenue Next 2Y0.13%
Revenue Next 3Y3.83%
Revenue Next 5Y6.56%
EBIT growth 1Y-86.42%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.86%
EBIT Next Year44.58%
EBIT Next 3Y38.59%
EBIT Next 5Y26.74%
FCF growth 1Y-110.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.64%
OCF growth 3Y-1.17%
OCF growth 5Y8.75%