STMICROELECTRONICS NV-NY SHS (STM) Fundamental Analysis & Valuation

NYSE:STM • US8610121027

Current stock price

31.45 USD
+0.59 (+1.91%)
Last:

This STM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. STM Profitability Analysis

1.1 Basic Checks

  • In the past year STM was profitable.
  • In the past year STM had a positive cash flow from operations.
  • STM had positive earnings in 4 of the past 5 years.
  • STM had a positive operating cash flow in 4 of the past 5 years.
STM Yearly Net Income VS EBIT VS OCF VS FCFSTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

1.2 Ratios

  • With a decent Return On Assets value of 3.42%, STM is doing good in the industry, outperforming 61.74% of the companies in the same industry.
  • STM has a Return On Equity (4.84%) which is comparable to the rest of the industry.
  • STM's Return On Invested Capital of 3.12% is in line compared to the rest of the industry. STM outperforms 57.39% of its industry peers.
  • STM had an Average Return On Invested Capital over the past 3 years of 17.60%. This is significantly above the industry average of 10.70%.
  • 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 RankSector 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%
STM Yearly ROA, ROE, ROICSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of STM (7.65%) is better than 63.48% of its industry peers.
  • STM's Profit Margin has improved in the last couple of years.
  • STM has a Operating Margin (6.48%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of STM has grown nicely.
  • STM has a worse Gross Margin (32.96%) than 66.09% of its industry peers.
  • In the last couple of years the Gross Margin of STM has remained more or less at the same level.
Industry RankSector 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%
STM Yearly Profit, Operating, Gross MarginsSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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4

2. STM Health Analysis

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
STM Yearly Shares OutstandingSTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
STM Yearly Total Debt VS Total AssetsSTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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 49.57% of 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.
  • With a Debt to Equity ratio value of 0.06, STM perfoms like the industry average, outperforming 59.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Altman-Z 3.68
ROIC/WACC0.29
WACC10.92%
STM Yearly LT Debt VS Equity VS FCFSTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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 has a Current ratio of 2.32. This is in the lower half of the industry: STM underperforms 65.22% of its industry peers.
  • STM has a Quick Ratio of 1.66. This is a normal value and indicates that STM is financially healthy and should not expect problems in meeting its short term obligations.
  • STM has a worse Quick ratio (1.66) than 68.70% of its industry peers.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 1.66
STM Yearly Current Assets VS Current LiabilitesSTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. STM Growth Analysis

3.1 Past

  • The earnings per share for STM have decreased strongly by -68.07% in the last year.
  • The earnings per share for STM have been decreasing by -15.22% on average. This is quite bad
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%0.27%

3.2 Future

  • Based on estimates for the next years, STM will show a very strong growth in Earnings Per Share. The EPS will grow by 41.51% on average per year.
  • STM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.40% yearly.
EPS Next Y129.38%
EPS Next 2Y98.25%
EPS Next 3Y77.76%
EPS Next 5Y41.51%
Revenue Next Year12.93%
Revenue Next 2Y12.07%
Revenue Next 3Y11.63%
Revenue Next 5Y8.4%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
STM Yearly Revenue VS EstimatesSTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
STM Yearly EPS VS EstimatesSTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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4

4. STM Valuation Analysis

4.1 Price/Earnings Ratio

  • STM is valuated quite expensively with a Price/Earnings ratio of 59.34.
  • Compared to the rest of the industry, the Price/Earnings ratio of STM is on the same level as its industry peers.
  • STM is valuated expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.87, which means the current valuation is very expensive for STM.
  • STM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STM is cheaper than 70.43% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, STM is valued at the same level.
Industry RankSector Rank
PE 59.34
Fwd PE 25.87
STM Price Earnings VS Forward Price EarningsSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 97.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.51
STM Per share dataSTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of STM may justify a higher PE ratio.
  • STM's earnings are expected to grow with 77.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y98.25%
EPS Next 3Y77.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. STM Dividend Analysis

5.1 Amount

  • STM has a Yearly Dividend Yield of 1.13%. 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 0.50. STM pays more dividend than 84.35% of the companies in the same industry.
  • With a Dividend Yield of 1.13, STM pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.13%

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
STM Yearly Dividends per shareSTM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

5.3 Sustainability

  • 35.28% 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.
DP35.28%
EPS Next 2Y98.25%
EPS Next 3Y77.76%
STM Yearly Income VS Free CF VS DividendSTM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B
STM Dividend Payout.STM Dividend Payout, showing the Payout Ratio.STM Dividend Payout.PayoutRetained Earnings

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STM Fundamentals: All Metrics, Ratios and Statistics

STMICROELECTRONICS NV-NY SHS

NYSE:STM (3/23/2026, 12:45:10 PM)

31.45

+0.59 (+1.91%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners30.48%
Inst Owner Change9.32%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap28.66B
Revenue(TTM)N/A
Net Income(TTM)907.00M
Analysts76.15
Price Target34.96 (11.16%)
Short Float %1.65%
Short Ratio1.28
Dividend
Industry RankSector Rank
Dividend Yield 1.13%
Yearly Dividend0.32
Dividend Growth(5Y)5.99%
DP35.28%
Div Incr Years1
Div Non Decr Years4
Ex-Date03-24
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)3.58%
PT rev (3m)11.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.51%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 59.34
Fwd PE 25.87
P/S 2.42
P/FCF N/A
P/OCF 10.66
P/B 1.53
P/tB 1.7
EV/EBITDA 7.51
EPS(TTM)0.53
EY1.69%
EPS(NY)1.22
Fwd EY3.87%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY9.38%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)0.46
PEG (5Y)N/A
Graham Number15.66
Profitability
Industry RankSector 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 RankSector 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 3.68
F-Score6
WACC10.92%
ROIC/WACC0.29
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)-68.07%
EPS 3Y-49.8%
EPS 5Y-15.22%
EPS Q2Q%-70.27%
EPS Next Y129.38%
EPS Next 2Y98.25%
EPS Next 3Y77.76%
EPS Next 5Y41.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.27%
Revenue Next Year12.93%
Revenue Next 2Y12.07%
Revenue Next 3Y11.63%
Revenue Next 5Y8.4%
EBIT growth 1Y-86.42%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.86%
EBIT Next Year38.63%
EBIT Next 3Y35.14%
EBIT Next 5Y23.14%
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 Fundamental Analysis 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 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 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%.