STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - NYSE:STM - US8610121027
23.7 USD
-0.03 (-0.13%)
23.93 USD
+0.23 (+0.97%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. STM has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 each of the past 5 years.
STM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STM's Return On Assets of 3.42% is fine compared to the rest of the industry. STM outperforms 61.61% of its industry peers.
STM has a better Return On Equity (4.84%) than 61.61% of its industry peers.
The Return On Invested Capital of STM (3.12%) 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 10.93%.
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
STM has a better Profit Margin (7.65%) than 66.07% of its industry peers.
In the last couple of years the Profit Margin of STM has grown nicely.
With a Operating Margin value of 6.48%, STM perfoms like the industry average, outperforming 59.82% of the companies in the same 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 67.86% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STM is still creating some value.
STM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STM has more shares outstanding
Compared to 1 year ago, STM has a worse debt to assets ratio.
2.2 Solvency
STM has an Altman-Z score of 3.18. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
STM has a Altman-Z score (3.18) which is in line with its industry peers.
STM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.18 |
ROIC/WACC0.31
WACC10.02%
2.3 Liquidity
A Current Ratio of 2.32 indicates that STM has no problem at all paying 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 64.29% of its industry peers.
A Quick Ratio of 1.66 indicates that STM should not have too much problems paying its short term obligations.
The Quick ratio of STM (1.66) is worse than 66.96% of its industry peers.
| 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.
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%.
The Revenue has been growing slightly by 6.79% on average over the past years.
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 10.29% 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 4.99% yearly.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.00, STM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, STM is valued a bit cheaper than 75.00% of the companies in the same industry.
STM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 19.10, STM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STM indicates a rather cheap valuation: STM is cheaper than 83.93% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of STM to the average of the S&P500 Index (33.72), we can say STM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaply inside the industry as 97.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.23 |
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)3.94
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.75%.
STM's Dividend Yield is rather good when compared to the industry average which is at 2.16. STM pays more dividend than 86.61% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, STM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 2Y-13.54%
EPS Next 3Y6.91%
23.7
-0.03 (-0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.22%
Inst Owner Change1.15%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap21.60B
Revenue(TTM)13.27B
Net Income(TTM)907.00M
Analysts76.15
Price Target31.17 (31.52%)
Short Float %1.7%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)-6.57%
PT rev (3m)-5.27%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-11.69%
EPS NY rev (1m)2.5%
EPS NY rev (3m)-17.58%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 19.1 | ||
| P/S | 1.82 | ||
| P/FCF | N/A | ||
| P/OCF | 8.03 | ||
| P/B | 1.15 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)0.79
EY3.33%
EPS(NY)1.24
Fwd EY5.24%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY12.45%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)3.94
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 | 3.18 |
F-Score6
WACC10.02%
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-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 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 30 and the Price/Book (PB) ratio is 1.15.
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%.