STMICROELECTRONICS NV (STMMI.MI) Stock Fundamental Analysis
BIT:STMMI - Euronext Milan - NL0000226223 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to STMMI. STMMI was compared to 57 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 is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years STMMI has always been profitable.
In the past 5 years STMMI always reported a positive cash flow from operatings.
1.2 Ratios
STMMI has a Return On Assets of 7.71%. This is comparable to the rest of the industry: STMMI outperforms 47.37% of its industry peers.
With a Return On Equity value of 10.78%, STMMI perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
STMMI has a Return On Invested Capital (7.82%) which is in line with its industry peers.
STMMI had an Average Return On Invested Capital over the past 3 years of 17.62%. This is above the industry average of 15.10%.
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 (14.97%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of STMMI has grown nicely.
The Operating Margin of STMMI (14.30%) is comparable to the rest of the industry.
STMMI's Operating Margin has improved in the last couple of years.
STMMI's Gross Margin of 37.68% is on the low side compared to the rest of the industry. STMMI is outperformed by 75.44% of its industry peers.
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.
Compared to 1 year ago, STMMI has a worse debt to assets ratio.
2.2 Solvency
STMMI has an Altman-Z score of 4.07. This indicates that STMMI is financially healthy and has little risk of bankruptcy at the moment.
STMMI has a Altman-Z score (4.07) which is comparable to the rest of the industry.
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 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.07 |
ROIC/WACC0.76
WACC10.35%
2.3 Liquidity
STMMI has a Current Ratio of 2.60. This indicates that STMMI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of STMMI (2.60) is better than 61.40% of its industry peers.
A Quick Ratio of 1.98 indicates that STMMI should not have too much problems paying its short term obligations.
STMMI's Quick ratio of 1.98 is fine compared to the rest of the industry. STMMI outperforms 66.67% 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 -69.49%.
The Earnings Per Share has been growing slightly by 7.62% on average over the past years.
The Revenue for STMMI has decreased by -23.24% 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)-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
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.
STMMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.66% yearly.
EPS Next Y-52.53%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
EPS Next 5Y13.46%
Revenue Next Year-13.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y3.35%
Revenue Next 5Y5.66%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STMMI is valuated quite expensively with a Price/Earnings ratio of 25.15.
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 26.86.
STMMI is valuated rather expensively with a Price/Forward Earnings ratio of 17.23.
STMMI's Price/Forward Earnings is on the same level as the industry average.
STMMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STMMI is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
STMMI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STMMI's earnings are expected to grow with 14.06% in the coming years.
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y2.42%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
STMMI has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.28, STMMI pays a better dividend. On top of this STMMI pays more dividend than 84.21% of the companies listed in the same industry.
With a Dividend Yield of 1.44, STMMI pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of STMMI has a limited annual growth rate of 0.51%.
Dividend Growth(5Y)0.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
14.49% of the earnings are spent on dividend by STMMI. This is a low number and sustainable payout ratio.
STMMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.49%
EPS Next 2Y2.42%
EPS Next 3Y14.06%
BIT:STMMI (6/27/2025, 11:44:54 AM)
25.65
-0.17 (-0.66%)
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 Cap23.37B
Analysts75.17
Price Target27.58 (7.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.21
Dividend Growth(5Y)0.51%
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)5.05%
PT rev (3m)-3.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 17.23 | ||
| P/S | 2.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.18 | ||
| P/B | 1.48 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)1.02
EY3.98%
EPS(NY)1.49
Fwd EY5.8%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)3.14
OCFY12.23%
SpS12.45
BVpS17.3
TBVpS15.62
PEG (NY)N/A
PEG (5Y)3.3
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 | 4.07 |
F-Score5
WACC10.35%
ROIC/WACC0.76
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 5Y13.46%
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 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%