STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - NYSE:STM - US8610121027
24.86 USD
-0.4 (-1.58%)
25 USD
+0.14 (+0.56%)
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 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.
In the past year STM had a positive cash flow from operations.
Each year in the past 5 years STM has been profitable.
Each year in the past 5 years STM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STM (3.42%) is comparable to the rest of the industry.
STM's Return On Equity of 4.84% is fine compared to the rest of the industry. STM outperforms 62.50% of its industry peers.
With a Return On Invested Capital value of 3.12%, STM perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 11.03%.
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 Profit Margin of 7.65%. This is in the better half of the industry: STM outperforms 65.18% of its industry peers.
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.
Looking at the Gross Margin, with a value of 32.96%, STM is doing worse than 66.96% of the companies in the same industry.
STM's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for STM has been reduced compared to 1 year ago.
Compared to 5 years ago, STM has more shares outstanding
The debt/assets ratio for STM is higher compared to a year ago.
2.2 Solvency
STM has an Altman-Z score of 3.26. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.26, STM perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that STM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, STM is in line with its industry, outperforming 58.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC0.31
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.32 indicates that STM has no problem at all paying its short term obligations.
STM has a Current ratio of 2.32. This is in the lower half of the industry: STM underperforms 65.18% of its industry peers.
A Quick Ratio of 1.66 indicates that STM should not have too much problems paying 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
STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.49%.
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)-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
The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
STM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.47, the valuation of STM can be described as expensive.
Based on the Price/Earnings ratio, STM is valued a bit cheaper than the industry average as 74.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STM to the average of the S&P500 Index (26.89), we can say STM is valued inline with the index average.
The Price/Forward Earnings ratio is 16.60, which indicates a correct valuation of STM.
Based on the Price/Forward Earnings ratio, STM is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
STM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.47 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
97.32% 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 | 5.59 |
4.3 Compensation for Growth
STM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.13
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, STM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, STM pays a better dividend. On top of this STM pays more dividend than 86.61% of the companies listed in the same industry.
STM's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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.
STM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.28%
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
24.86
-0.4 (-1.58%)
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 Cap22.65B
Revenue(TTM)13.27B
Net Income(TTM)907.00M
Analysts76
Price Target33.37 (34.23%)
Short Float %1.34%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)1.47%
PT rev (3m)-0.21%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-13.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.59%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.47 | ||
| Fwd PE | 16.6 | ||
| P/S | 1.91 | ||
| P/FCF | N/A | ||
| P/OCF | 8.43 | ||
| P/B | 1.21 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)0.79
EY3.18%
EPS(NY)1.5
Fwd EY6.02%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY11.87%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)4.13
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 | 3.26 |
F-Score6
WACC10.11%
ROIC/WACC0.31
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-61.83%
EPS Next 2Y-5.03%
EPS Next 3Y11.94%
EPS Next 5Y13.83%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-1.97%
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%
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 4 / 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 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 31.47 and the Price/Book (PB) ratio is 1.21.
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%.