STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
NYSE:STM - US8610121027
27.52 USD
+1.64 (+6.34%)
27.5 USD
-0.02 (-0.07%)
STM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 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 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.
In the past 5 years STM has always been profitable.
In the past 5 years STM always reported a positive cash flow from operatings.
1.2 Ratios
STM has a Return On Assets of 7.71%. This is in the better half of the industry: STM outperforms 77.27% of its industry peers.
The Return On Equity of STM (10.78%) is better than 74.55% of its industry peers.
STM has a better Return On Invested Capital (7.82%) than 75.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 10.86%.
The last Return On Invested Capital (7.82%) for STM is well below the 3 year average (17.62%), 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 | 7.82% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.62%
ROIC(5y)15.94%
1.3 Margins
STM has a Profit Margin of 14.97%. This is in the better half of the industry: STM outperforms 74.55% of its industry peers.
In the last couple of years the Profit Margin of STM has grown nicely.
STM has a Operating Margin of 14.30%. This is in the better half of the industry: STM outperforms 70.91% of its industry peers.
STM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.68%, STM is doing worse than 62.73% 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 | 14.3% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.68% |
OM growth 3Y-10.49%
OM growth 5Y2.14%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
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.
STM has less shares outstanding than it did 1 year ago.
STM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STM has a worse debt to assets ratio.
2.2 Solvency
STM has an Altman-Z score of 3.87. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
STM's Altman-Z score of 3.87 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's Debt to Equity ratio of 0.07 is in line compared to the rest of the industry. STM outperforms 57.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.87 |
ROIC/WACC0.77
WACC10.22%
2.3 Liquidity
A Current Ratio of 2.60 indicates that STM has no problem at all paying its short term obligations.
STM has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.98 indicates that STM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.98, STM perfoms like the industry average, outperforming 46.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for STM have decreased strongly by -72.98% in the last year.
Measured over the past 5 years, STM shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
The Revenue for STM has decreased by -50.57% in the past year. This is quite bad
STM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.79% yearly.
EPS 1Y (TTM)-72.98%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-84.21%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
3.2 Future
The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
Based on estimates for the next years, STM will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y-61.84%
EPS Next 2Y-4.84%
EPS Next 3Y12.11%
EPS Next 5Y13.83%
Revenue Next Year-11.3%
Revenue Next 2Y0.11%
Revenue Next 3Y3.85%
Revenue Next 5Y6.56%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.63, which means the current valuation is very expensive for STM.
63.64% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of STM to the average of the S&P500 Index (27.24), we can say STM is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.31, STM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STM is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
STM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 18.31 |
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 98.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
STM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STM's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)N/A
PEG (5Y)4.15
EPS Next 2Y-4.84%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
STM's Dividend Yield is rather good when compared to the industry average which is at 2.42. STM pays more dividend than 85.45% of the companies in the same industry.
STM's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
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 2Y-4.84%
EPS Next 3Y12.11%
27.52
+1.64 (+6.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners30.25%
Inst Owner Change-10.44%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap25.08B
Analysts76.3
Price Target31.94 (16.06%)
Short Float %1.18%
Short Ratio0.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.32
Dividend Growth(5Y)5.99%
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)-4.46%
PT rev (3m)8.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-19.63%
EPS NY rev (3m)-19.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.66%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 18.31 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | 7.5 | ||
| P/B | 1.36 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 4.57 |
EPS(TTM)0.87
EY3.16%
EPS(NY)1.5
Fwd EY5.46%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.67
OCFY13.33%
SpS14.56
BVpS20.23
TBVpS18.27
PEG (NY)N/A
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 10.78% | ||
| ROCE | 8.93% | ||
| ROIC | 7.82% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 12.52% | ||
| OM | 14.3% | ||
| PM (TTM) | 14.97% | ||
| GM | 37.68% | ||
| FCFM | N/A |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.62%
ROIC(5y)15.94%
ROICexc(3y)24.97%
ROICexc(5y)22.5%
ROICexgc(3y)26.71%
ROICexgc(5y)25.25%
ROCE(3y)20.11%
ROCE(5y)18.19%
ROICexcg growth 3Y-22.68%
ROICexcg growth 5Y-8.51%
ROICexc growth 3Y-21.07%
ROICexc growth 5Y-6.8%
OM growth 3Y-10.49%
OM growth 5Y2.14%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
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 | 24.01 | ||
| Cash Conversion | 84.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.87 |
F-Score5
WACC10.22%
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)-72.98%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-84.21%
EPS Next Y-61.84%
EPS Next 2Y-4.84%
EPS Next 3Y12.11%
EPS Next 5Y13.83%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
Revenue Next Year-11.3%
Revenue Next 2Y0.11%
Revenue Next 3Y3.85%
Revenue Next 5Y6.56%
EBIT growth 1Y-73.23%
EBIT growth 3Y-9.32%
EBIT growth 5Y9.07%
EBIT Next Year46.94%
EBIT Next 3Y39.3%
EBIT Next 5Y26.74%
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%