STMICROELECTRONICS NV (STMMI.MI) Stock Fundamental Analysis
BIT:STMMI - Euronext Milan - NL0000226223 - Common Stock - Currency: EUR
Overall STMMI gets a fundamental rating of 5 out of 10. We evaluated STMMI against 60 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of STMMI get a neutral evaluation. Nothing too spectacular is happening here. STMMI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year STMMI was profitable.
In the past year STMMI had a positive cash flow from operations.
Each year in the past 5 years STMMI has been profitable.
Each year in the past 5 years STMMI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.71%, STMMI is in line with its industry, outperforming 46.67% of the companies in the same industry.
With a Return On Equity value of 10.78%, STMMI perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
STMMI has a Return On Invested Capital (7.82%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STMMI is above the industry average of 15.32%.
The 3 year average ROIC (17.62%) for STMMI is well above the current ROIC(7.82%). The reason for the recent decline needs to be investigated.
| 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
STMMI has a Profit Margin of 14.97%. This is comparable to the rest of the industry: STMMI outperforms 55.00% of its industry peers.
STMMI's Profit Margin has improved in the last couple of years.
STMMI has a Operating Margin (14.30%) which is in line with its industry peers.
STMMI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.68%, STMMI is doing worse than 76.67% of the companies in the same industry.
In the last couple of years the Gross Margin of STMMI 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), STMMI is creating some value.
STMMI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for STMMI has been increased compared to 5 years ago.
Compared to 1 year ago, STMMI has a worse debt to assets ratio.
2.2 Solvency
STMMI has an Altman-Z score of 3.66. This indicates that STMMI is financially healthy and has little risk of bankruptcy at the moment.
STMMI has a Altman-Z score of 3.66. This is in the lower half of the industry: STMMI underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that STMMI is not too dependend on debt financing.
STMMI has a better Debt to Equity ratio (0.07) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.66 |
ROIC/WACC0.78
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.60 indicates that STMMI has no problem at all paying its short term obligations.
STMMI has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.98 indicates that STMMI should not have too much problems paying its short term obligations.
STMMI has a Quick ratio of 1.98. This is in the better half of the industry: STMMI outperforms 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
STMMI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.43%.
Measured over the past 5 years, STMMI shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
The Revenue for STMMI has decreased by -50.57% in the past year. This is quite bad
The Revenue has been growing slightly by 6.79% on average over the past years.
EPS 1Y (TTM)-71.43%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-71.05%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
3.2 Future
STMMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.46% yearly.
The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y13.46%
Revenue Next Year-11.55%
Revenue Next 2Y0.3%
Revenue Next 3Y3.85%
Revenue Next 5Y5.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.07, which means the current valuation is very expensive for STMMI.
STMMI's Price/Earnings is on the same level as the industry average.
STMMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.99.
STMMI is valuated correctly with a Price/Forward Earnings ratio of 14.25.
71.67% of the companies in the same industry are more expensive than STMMI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of STMMI to the average of the S&P500 Index (36.36), we can say STMMI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STMMI is valued cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
STMMI has a very decent profitability rating, which may justify a higher PE ratio.
STMMI'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)3.55
EPS Next 2Y2.42%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
STMMI has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.33, STMMI pays a better dividend. On top of this STMMI pays more dividend than 83.33% of the companies listed in the same industry.
STMMI's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of STMMI has a limited annual growth rate of 5.99%.
Dividend Growth(5Y)5.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STMMI pays out 14.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of STMMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.49%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
BIT:STMMI (8/7/2025, 12:59:16 PM)
21.385
+0.08 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners30.25%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap19.49B
Analysts75.71
Price Target28.91 (35.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.28
Dividend Growth(5Y)5.99%
DP14.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)N/A
Avg Revenue beat(8)N/A
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)4.81%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.55%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.38%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 14.25 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 6.77 | ||
| P/B | 1.23 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)0.79
EY3.69%
EPS(NY)1.5
Fwd EY7.02%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)3.16
OCFY14.78%
SpS12.55
BVpS17.43
TBVpS15.74
PEG (NY)N/A
PEG (5Y)3.55
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 | 3.66 |
F-Score5
WACC10.09%
ROIC/WACC0.78
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)-71.43%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-71.05%
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y13.46%
Revenue 1Y (TTM)-50.57%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-14.42%
Revenue Next Year-11.55%
Revenue Next 2Y0.3%
Revenue Next 3Y3.85%
Revenue Next 5Y5.66%
EBIT growth 1Y-73.23%
EBIT growth 3Y-9.32%
EBIT growth 5Y9.07%
EBIT Next Year46.94%
EBIT Next 3Y39.3%
EBIT Next 5Y26.52%
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%