STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STM - US8610121027
25.94 USD
-0.12 (-0.46%)
27.2 USD
+1.26 (+4.86%)
STM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 113 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year STM was profitable.
STM had a positive operating cash flow in the past year.
In the past 5 years STM has always been profitable.
STM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STM has a Return On Assets of 3.42%. This is in the better half of the industry: STM outperforms 60.18% of its industry peers.
With a Return On Equity value of 4.84%, STM perfoms like the industry average, outperforming 58.41% of the companies in the same industry.
STM's Return On Invested Capital of 3.12% is in line compared to the rest of the industry. STM outperforms 54.87% 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 10.75%.
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
The Profit Margin of STM (7.65%) is better than 64.60% of its industry peers.
STM's Profit Margin has improved in the last couple of years.
STM has a Operating Margin (6.48%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of STM has grown nicely.
Looking at the Gross Margin, with a value of 32.96%, STM is doing worse than 67.26% of the companies in the same industry.
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.
The number of shares outstanding for STM has been increased compared to 5 years ago.
Compared to 1 year ago, STM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.33 indicates that STM is not in any danger for bankruptcy at the moment.
The Altman-Z score of STM (3.33) 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 of 0.06. This is in the better half of the industry: STM outperforms 61.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.33 |
ROIC/WACC0.3
WACC10.46%
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 has a worse Current ratio (2.32) than 63.72% 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.
The Quick ratio of STM (1.66) is worse than 68.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.49%.
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
Based on estimates for the next years, STM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
The Revenue is expected to grow by 4.99% on average over the next years.
EPS Next Y-61.33%
EPS Next 2Y-13.48%
EPS Next 3Y6.98%
EPS Next 5Y10.29%
Revenue Next Year-11.33%
Revenue Next 2Y-0.91%
Revenue Next 3Y2.84%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.84, which means the current valuation is very expensive for STM.
Based on the Price/Earnings ratio, STM is valued a bit cheaper than 71.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, STM is valued a bit more expensive.
A Price/Forward Earnings ratio of 20.87 indicates a rather expensive valuation of STM.
STM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STM is cheaper than 78.76% of the companies in the same industry.
STM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaply inside the industry as 98.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
The decent profitability rating of STM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.31
EPS Next 2Y-13.48%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.56, STM pays a better dividend. On top of this STM pays more dividend than 86.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, STM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of STM has a limited annual growth rate of 5.99%.
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)5.99%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
35.28% of the earnings are spent on dividend by STM. This is a low number and 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-13.48%
EPS Next 3Y6.98%
25.94
-0.12 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners31.05%
Inst Owner Change-3.11%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap23.64B
Revenue(TTM)13.27B
Net Income(TTM)907.00M
Analysts76.15
Price Target31.58 (21.74%)
Short Float %2.21%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.32
Dividend Growth(5Y)5.99%
DP35.28%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
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)1.96%
PT rev (3m)-3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 20.87 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 8.79 | ||
| P/B | 1.26 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)0.79
EY3.05%
EPS(NY)1.24
Fwd EY4.79%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY11.37%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)4.31
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 | 3.33 |
F-Score6
WACC10.46%
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-61.33%
EPS Next 2Y-13.48%
EPS Next 3Y6.98%
EPS Next 5Y10.29%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-1.97%
Revenue Next Year-11.33%
Revenue Next 2Y-0.91%
Revenue Next 3Y2.84%
Revenue Next 5Y4.99%
EBIT growth 1Y-86.42%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.86%
EBIT Next Year40.58%
EBIT Next 3Y35%
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 for 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.
Can you provide the financial health for STM stock?
The financial health rating of STMICROELECTRONICS NV-NY SHS (STM) is 4 / 10.
How sustainable is the dividend of STMICROELECTRONICS NV-NY SHS (STM) stock?
The dividend rating of STMICROELECTRONICS NV-NY SHS (STM) is 6 / 10 and the dividend payout ratio is 35.28%.