STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
NYSE:STM - New York Stock Exchange, Inc. - US8610121027 - Currency: USD
Taking everything into account, STM scores 5 out of 10 in our fundamental rating. STM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While STM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year STM was profitable.
STM had a positive operating cash flow in the past year.
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
The Return On Assets of STM (7.71%) is better than 75.45% of its industry peers.
With a decent Return On Equity value of 10.78%, STM is doing good in the industry, outperforming 70.91% of the companies in the same industry.
STM has a Return On Invested Capital of 7.86%. This is in the better half of the industry: STM outperforms 74.55% of its industry peers.
STM had an Average Return On Invested Capital over the past 3 years of 17.63%. This is significantly above the industry average of 11.29%.
The last Return On Invested Capital (7.86%) for STM is well below the 3 year average (17.63%), which needs to be investigated, but indicates that STM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROIC | 7.86% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.63%
ROIC(5y)15.95%
1.3 Margins
Looking at the Profit Margin, with a value of 14.97%, STM is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
STM has a Operating Margin of 14.36%. This is in the better half of the industry: STM outperforms 70.91% of its industry peers.
In the last couple of years the Operating Margin of STM has grown nicely.
Looking at the Gross Margin, with a value of 37.74%, STM is doing worse than 61.82% 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 | 14.36% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.74% |
OM growth 3Y-10.37%
OM growth 5Y2.22%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.84%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STM is creating some value.
Compared to 1 year ago, STM has a worse debt to assets ratio.
2.2 Solvency
STM has an Altman-Z score of 3.68. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
STM's Altman-Z score of 3.68 is in line compared to the rest of the industry. STM outperforms 55.45% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that STM is not too dependend on debt financing.
STM has a Debt to Equity ratio (0.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.68 |
ROIC/WACC0.77
WACC10.18%
2.3 Liquidity
A Current Ratio of 2.60 indicates that STM has no problem at all paying its short term obligations.
STM's Current ratio of 2.60 is in line compared to the rest of the industry. STM outperforms 41.82% of its industry peers.
STM has a Quick Ratio of 1.98. 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 1.98, STM perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.49%.
STM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.62% yearly.
Looking at the last year, STM shows a very negative growth in Revenue. The Revenue has decreased by -23.24% in the last year.
STM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.79% yearly.
EPS 1Y (TTM)-69.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-87.04%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-27.36%
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 17.72% yearly.
The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y17.72%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y9.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue 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
Based on the Price/Earnings ratio of 21.00, the valuation of STM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STM indicates a somewhat cheap valuation: STM is cheaper than 71.82% of the companies listed in the same industry.
STM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
A Price/Forward Earnings ratio of 14.35 indicates a correct valuation of STM.
Based on the Price/Forward Earnings ratio, STM is valued a bit cheaper than 75.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, STM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STM indicates a rather cheap valuation: STM is cheaper than 96.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
STM has a very decent profitability rating, which may justify a higher PE ratio.
STM's earnings are expected to grow with 14.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y2.42%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, STM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.61, STM pays a better dividend. On top of this STM pays more dividend than 83.64% of the companies listed in the same industry.
With a Dividend Yield of 1.38, STM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of STM has a limited annual growth rate of 0.51%.
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)0.51%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
14.49% 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.
DP14.49%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
24.99
-0.39 (-1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.73%
Inst Owner Change21.89%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.77B
Analysts75.17
Price Target29.53 (18.17%)
Short Float %2.28%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.25
Dividend Growth(5Y)0.51%
DP14.49%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.89%
Min EPS beat(2)2.3%
Max EPS beat(2)13.48%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-7.15%
Max EPS beat(4)13.48%
EPS beat(8)6
Avg EPS beat(8)3.97%
EPS beat(12)10
Avg EPS beat(12)8.21%
EPS beat(16)13
Avg EPS beat(16)7.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-2.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)-2.12%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
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)-7.76%
PT rev (3m)-5.55%
EPS NQ rev (1m)11.55%
EPS NQ rev (3m)-71.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 14.35 | ||
| P/S | 1.72 | ||
| P/FCF | N/A | ||
| P/OCF | 6.81 | ||
| P/B | 1.24 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 3.98 |
EPS(TTM)1.19
EY4.76%
EPS(NY)1.74
Fwd EY6.97%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.67
OCFY14.68%
SpS14.56
BVpS20.23
TBVpS18.27
PEG (NY)N/A
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROCE | 8.97% | ||
| ROIC | 7.86% | ||
| ROICexc | 11.08% | ||
| ROICexgc | 12.57% | ||
| OM | 14.36% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.74% | ||
| FCFM | N/A |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.63%
ROIC(5y)15.95%
ROICexc(3y)24.99%
ROICexc(5y)22.51%
ROICexgc(3y)26.72%
ROICexgc(5y)25.26%
ROCE(3y)20.12%
ROCE(5y)18.2%
ROICexcg growth 3Y-22.57%
ROICexcg growth 5Y-8.43%
ROICexc growth 3Y-20.96%
ROICexc growth 5Y-6.72%
OM growth 3Y-10.37%
OM growth 5Y2.22%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.84%
GM growth 5Y1.2%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 171.94% | ||
| Cap/Sales | 26.64% | ||
| Interest Coverage | 24.11 | ||
| Cash Conversion | 84.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.68 |
F-Score5
WACC10.18%
ROIC/WACC0.77
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)-69.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-87.04%
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y17.72%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-27.36%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y9.06%
EBIT growth 1Y-73.12%
EBIT growth 3Y-9.19%
EBIT growth 5Y9.16%
EBIT Next Year46.94%
EBIT Next 3Y39.3%
EBIT Next 5Y32.75%
FCF growth 1Y-113.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.5%
OCF growth 3Y-1.17%
OCF growth 5Y8.75%