STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STM - US8610121027
25.81 USD
+1.72 (+7.14%)
25.51 USD
-0.3 (-1.16%)
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. STM scores excellent on profitability, but there are some minor concerns on its financial health. STM does not seem to be growing, but still is valued expensively.
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.
STM had positive earnings in each of the past 5 years.
In the past 5 years STM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of STM (3.42%) is better than 63.39% of its industry peers.
STM has a better Return On Equity (4.84%) than 61.61% of its industry peers.
STM has a Return On Invested Capital (3.12%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 10.77%.
The 3 year average ROIC (17.60%) for STM is well above the current ROIC(3.12%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 7.65%, STM is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.48%, STM is in line with its industry, outperforming 59.82% of the companies in the same industry.
In the last couple of years the Operating Margin of STM has grown nicely.
STM has a Gross Margin of 32.96%. This is in the lower half of the industry: STM underperforms 67.86% of its industry peers.
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 just above the Cost of Capital (WACC), so STM is still creating some value.
The number of shares outstanding for STM has been reduced compared to 1 year ago.
STM has more shares outstanding than it did 5 years ago.
STM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.20 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score (3.20) 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's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. STM outperforms 59.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.2 |
ROIC/WACC0.3
WACC10.35%
2.3 Liquidity
STM has a Current Ratio of 2.32. This indicates that STM is financially healthy and has no problem in meeting its short term obligations.
STM's Current ratio of 2.32 is on the low side compared to the rest of the industry. STM is outperformed by 63.39% of its industry peers.
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.
With a Quick ratio value of 1.66, STM is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| 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 -67.49% 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 -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)-67.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-1.97%
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 10.29% yearly.
Based on estimates for the next years, STM will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y-60.87%
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
EPS Next 5Y10.29%
Revenue Next Year-11.43%
Revenue Next 2Y-0.95%
Revenue Next 3Y2.79%
Revenue Next 5Y4.99%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.67, STM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STM indicates a somewhat cheap valuation: STM is cheaper than 75.89% of the companies listed in the same industry.
STM is valuated rather expensively when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
STM is valuated rather expensively with a Price/Forward Earnings ratio of 20.80.
79.46% of the companies in the same industry are more expensive than STM, based on the Price/Forward Earnings ratio.
STM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.67 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaper than 97.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
The decent profitability rating of STM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.29
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, STM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.22, STM pays a better dividend. On top of this STM pays more dividend than 87.50% of the companies listed in the same industry.
STM's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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.
STM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.28%
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
25.81
+1.72 (+7.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.22%
Inst Owner Change-3.13%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap23.52B
Revenue(TTM)13.27B
Net Income(TTM)907.00M
Analysts76.15
Price Target30.98 (20.03%)
Short Float %1%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-0.63%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)2.5%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.67 | ||
| Fwd PE | 20.8 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | 8.75 | ||
| P/B | 1.26 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)0.79
EY3.06%
EPS(NY)1.24
Fwd EY4.81%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY11.43%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)4.29
Graham Number19.12
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%
ROICexgc growth 3Y-22.92%
ROICexgc 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 | 3.2 |
F-Score6
WACC10.35%
ROIC/WACC0.3
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)-67.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-21.62%
EPS Next Y-60.87%
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
EPS Next 5Y10.29%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-1.97%
Revenue Next Year-11.43%
Revenue Next 2Y-0.95%
Revenue Next 3Y2.79%
Revenue Next 5Y4.99%
EBIT growth 1Y-86.42%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.86%
EBIT Next Year44.58%
EBIT Next 3Y38.59%
EBIT Next 5Y24.63%
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%
STMICROELECTRONICS NV-NY SHS / STM FAQ
What is the ChartMill fundamental rating of STMICROELECTRONICS NV-NY SHS (STM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to STM.
What is the valuation status of STMICROELECTRONICS NV-NY SHS (STM) stock?
ChartMill assigns a valuation rating of 3 / 10 to STMICROELECTRONICS NV-NY SHS (STM). This can be considered as Overvalued.
How profitable is STMICROELECTRONICS NV-NY SHS (STM) stock?
STMICROELECTRONICS NV-NY SHS (STM) has a profitability rating of 7 / 10.
What is the valuation of STMICROELECTRONICS NV-NY SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STMICROELECTRONICS NV-NY SHS (STM) is 32.67 and the Price/Book (PB) ratio is 1.26.
Can you provide the dividend sustainability for STM stock?
The dividend rating of STMICROELECTRONICS NV-NY SHS (STM) is 6 / 10 and the dividend payout ratio is 35.28%.