STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STM - US8610121027
25.66 USD
-0.15 (-0.58%)
25.8 USD
+0.14 (+0.55%)
STM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 expensive valuation and it also scores bad on growth.
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
Looking at the Return On Assets, with a value of 3.42%, STM is in the better half of the industry, outperforming 63.39% of the companies in the same industry.
The Return On Equity of STM (4.84%) is better than 61.61% of its industry peers.
STM has a Return On Invested Capital of 3.12%. This is comparable to the rest of the industry: STM outperforms 56.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 10.79%.
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
With a decent Profit Margin value of 7.65%, STM is doing good in the industry, outperforming 67.86% of the companies in the same industry.
STM's Profit Margin has improved in the last couple of years.
STM's Operating Margin of 6.48% is in line compared to the rest of the industry. STM outperforms 59.82% of its industry peers.
In the last couple of years the Operating Margin of STM has grown nicely.
STM's Gross Margin of 32.96% is on the low side compared to the rest of the industry. STM is outperformed by 67.86% of its industry peers.
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.
The number of shares outstanding for STM has been increased compared to 5 years ago.
STM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.31 indicates that STM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.31, STM is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that STM is not too dependend on debt financing.
The Debt to Equity ratio of STM (0.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
ROIC/WACC0.3
WACC10.36%
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 63.39% 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 68.75% 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%.
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.
The Revenue is expected to grow by 4.99% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.48, which means the current valuation is very expensive for STM.
STM's Price/Earnings ratio is a bit cheaper when compared to the industry. STM is cheaper than 75.00% of the companies in the same industry.
STM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.41.
With a Price/Forward Earnings ratio of 20.68, STM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STM is valued a bit cheaper than 79.46% of the companies in the same industry.
STM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaper than 97.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.85 |
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)4.26
EPS Next 2Y-13.54%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.84%. 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 2.22. STM pays more dividend than 87.50% 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 | 1.84% |
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-13.54%
EPS Next 3Y6.91%
25.66
-0.15 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.22%
Inst Owner Change-3.13%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap23.38B
Revenue(TTM)13.27B
Net Income(TTM)907.00M
Analysts76.15
Price Target30.98 (20.73%)
Short Float %1%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-0.63%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)2.5%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 20.68 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 8.7 | ||
| P/B | 1.25 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 5.85 |
EPS(TTM)0.79
EY3.08%
EPS(NY)1.24
Fwd EY4.84%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)2.95
OCFY11.5%
SpS13.01
BVpS20.56
TBVpS18.53
PEG (NY)N/A
PEG (5Y)4.26
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 | 3.31 |
F-Score6
WACC10.36%
ROIC/WACC0.3
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 3 / 10 to STMICROELECTRONICS NV-NY SHS (STM). This can be considered as Overvalued.
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 32.48 and the Price/Book (PB) ratio is 1.25.
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%.