STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
NYSE:STM - New York Stock Exchange, Inc. - US8610121027 - Currency: USD
We assign a fundamental rating of 5 out of 10 to STM. STM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While STM has a great profitability rating, there are some minor concerns on its financial health. STM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STM had positive earnings in the past year.
STM had a positive operating cash flow in the past year.
In the past 5 years STM has always been profitable.
Each year in the past 5 years STM had a positive operating cash flow.
1.2 Ratios
STM has a better Return On Assets (7.71%) than 75.45% of its industry peers.
STM has a Return On Equity of 10.78%. This is in the better half of the industry: STM outperforms 70.91% of its industry peers.
STM has a better Return On Invested Capital (7.86%) than 74.55% 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 11.28%.
The 3 year average ROIC (17.63%) for STM is well above the current ROIC(7.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROIC | 7.86% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.63%
ROIC(5y)15.95%
1.3 Margins
STM's Profit Margin of 14.97% is fine compared to the rest of the industry. STM outperforms 73.64% of its industry peers.
STM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.36%, STM is in the better half of the industry, outperforming 70.91% 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 37.74%. This is in the lower half of the industry: STM underperforms 61.82% of its industry peers.
STM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.36% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.74% |
OM growth 3Y-10.37%
OM growth 5Y2.22%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.84%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
STM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The debt/assets ratio for STM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.71 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score (3.71) 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 (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.71 |
ROIC/WACC0.77
WACC10.18%
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.
STM has a Quick Ratio of 1.98. 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 (1.98) 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
The earnings per share for STM have decreased strongly by -69.49% in the last year.
STM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.62% yearly.
STM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.24%.
Measured over the past years, STM shows a small growth in Revenue. The Revenue has been growing by 6.79% on average per year.
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
The Earnings Per Share is expected to grow by 17.72% on average over the next years. This is quite good.
Based on estimates for the next years, STM will show a quite strong growth in Revenue. The Revenue will grow by 9.06% on average per year.
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y17.72%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y9.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.16, the valuation of STM can be described as rather expensive.
Based on the Price/Earnings ratio, STM is valued a bit cheaper than 71.82% of the companies in the same industry.
STM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.46, STM is valued correctly.
STM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STM is cheaper than 76.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.20. STM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
96.36% of the companies in the same industry are more expensive than STM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.07 |
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)2.78
EPS Next 2Y2.42%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.38%. 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 2.61. STM pays more dividend than 83.64% of the companies in the same industry.
With a Dividend Yield of 1.38, STM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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%
NYSE:STM (5/28/2025, 12:33:01 PM)
25.185
-0.2 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.73%
Inst Owner Change21.89%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.95B
Analysts75.17
Price Target29.53 (17.25%)
Short Float %2.28%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)-7.76%
PT rev (3m)-5.55%
EPS NQ rev (1m)11.55%
EPS NQ rev (3m)-71.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.46 | ||
| P/S | 1.73 | ||
| P/FCF | N/A | ||
| P/OCF | 6.87 | ||
| P/B | 1.24 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)1.19
EY4.73%
EPS(NY)1.74
Fwd EY6.91%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.67
OCFY14.56%
SpS14.56
BVpS20.23
TBVpS18.27
PEG (NY)N/A
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROCE | 8.97% | ||
| ROIC | 7.86% | ||
| ROICexc | 11.08% | ||
| ROICexgc | 12.57% | ||
| OM | 14.36% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.74% | ||
| FCFM | N/A |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.63%
ROIC(5y)15.95%
ROICexc(3y)24.99%
ROICexc(5y)22.51%
ROICexgc(3y)26.72%
ROICexgc(5y)25.26%
ROCE(3y)20.12%
ROCE(5y)18.2%
ROICexcg growth 3Y-22.57%
ROICexcg growth 5Y-8.43%
ROICexc growth 3Y-20.96%
ROICexc growth 5Y-6.72%
OM growth 3Y-10.37%
OM growth 5Y2.22%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.84%
GM growth 5Y1.2%
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 | 24.11 | ||
| Cash Conversion | 84.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.71 |
F-Score5
WACC10.18%
ROIC/WACC0.77
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 5Y17.72%
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 5Y9.06%
EBIT growth 1Y-73.12%
EBIT growth 3Y-9.19%
EBIT growth 5Y9.16%
EBIT Next Year46.94%
EBIT Next 3Y39.3%
EBIT Next 5Y32.75%
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%