STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STM • US8610121027
27.89 USD
-0.73 (-2.55%)
At close: Jan 30, 2026
27.57 USD
-0.32 (-1.15%)
After Hours: 1/30/2026, 8:20:04 PM
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. STM has an average financial health and profitability rating. STM has a valuation in line with the averages, but it does not seem to be growing.
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 4 of the past 5 years.
- Of the past 5 years STM 4 years had a positive operating cash flow.
1.2 Ratios
- STM has a better Return On Assets (3.42%) than 60.18% of its industry peers.
- STM has a Return On Equity of 4.84%. This is comparable to the rest of the industry: STM outperforms 58.41% of its industry peers.
- STM has a Return On Invested Capital (3.12%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for STM is significantly above the industry average of 10.85%.
- 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
- STM has a better Profit Margin (7.65%) than 63.72% 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 6.48%, STM is in line with its industry, outperforming 58.41% of the companies in the same industry.
- STM's Operating Margin has improved in the last couple of years.
- 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
- STM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- STM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.52 indicates that STM is not in any danger for bankruptcy at the moment.
- STM's Altman-Z score of 3.52 is in line compared to the rest of the industry. STM outperforms 46.02% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that STM is not too dependend on debt financing.
- STM has a better Debt to Equity ratio (0.06) than 61.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC0.29
WACC10.72%
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 64.60% of its industry peers.
- A Quick Ratio of 1.66 indicates that STM should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.66, STM is not doing good in the industry: 68.14% 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
- STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.07%.
- STM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.22% yearly.
EPS 1Y (TTM)-68.07%
EPS 3Y-49.8%
EPS 5Y-15.22%
EPS Q2Q%-70.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.24%
3.2 Future
- STM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.60% yearly.
- STM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.24% yearly.
EPS Next Y123.99%
EPS Next 2Y94.74%
EPS Next 3Y62.67%
EPS Next 5Y61.6%
Revenue Next Year10.74%
Revenue Next 2Y10.75%
Revenue Next 3Y9.34%
Revenue Next 5Y11.24%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 52.62 indicates a quite expensive valuation of STM.
- 62.83% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.30. STM is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 23.49 indicates a rather expensive valuation of STM.
- 81.42% of the companies in the same industry are more expensive than STM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of STM to the average of the S&P500 Index (25.57), we can say STM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.62 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
- 97.35% 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 | 6.79 |
4.3 Compensation for Growth
- STM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- STM has a very decent profitability rating, which may justify a higher PE ratio.
- STM's earnings are expected to grow with 62.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y94.74%
EPS Next 3Y62.67%
5. Dividend
5.1 Amount
- STM has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.49, STM pays a better dividend. On top of this STM pays more dividend than 86.73% of the companies listed in the same industry.
- STM's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 2Y94.74%
EPS Next 3Y62.67%
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 5 / 10 to STMICROELECTRONICS NV-NY SHS (STM). This can be considered as Fairly Valued.
How profitable is STMICROELECTRONICS NV-NY SHS (STM) stock?
STMICROELECTRONICS NV-NY SHS (STM) has a profitability rating of 6 / 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%.