NYSE:STM stands out as a stock that provides good value for the fundamentals it showcases.

Last update: May 20, 2024

Discover STMICROELECTRONICS NV-NY SHS (NYSE:STM)—an undervalued stock our stock screener has picked out. NYSE:STM demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Assessment of NYSE:STM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:STM boasts a 8 out of 10:

With a Price/Earnings ratio of 10.68, the valuation of STM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of STM indicates a rather cheap valuation: STM is cheaper than 96.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, STM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.99, the valuation of STM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STM indicates a rather cheap valuation: STM is cheaper than 93.46% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. STM is valued rather cheaply when compared to this.
STM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STM is cheaper than 96.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STM is valued cheaper than 85.05% of the companies in the same industry.
The excellent profitability rating of STM may justify a higher PE ratio.

Profitability Insights: NYSE:STM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:STM, the assigned 9 is a significant indicator of profitability:

STM has a better Return On Assets (17.88%) than 91.59% of its industry peers.
STM's Return On Equity of 27.47% is amongst the best of the industry. STM outperforms 86.92% of its industry peers.
STM's Return On Invested Capital of 25.82% is amongst the best of the industry. STM outperforms 95.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STM is significantly above the industry average of 10.73%.
The 3 year average ROIC (20.86%) for STM is below the current ROIC(25.82%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 23.70%, STM belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
In the last couple of years the Profit Margin of STM has grown nicely.
Looking at the Operating Margin, with a value of 30.01%, STM belongs to the top of the industry, outperforming 89.72% of the companies in the same industry.
In the last couple of years the Operating Margin of STM has grown nicely.
In the last couple of years the Gross Margin of STM has grown nicely.

Health Examination for NYSE:STM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:STM, the assigned 7 for health provides valuable insights:

STM has an Altman-Z score of 5.18. This indicates that STM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STM (5.18) is better than 60.75% of its industry peers.
The Debt to FCF ratio of STM is 1.50, which is an excellent value as it means it would take STM, only 1.50 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.50, STM is doing good in the industry, outperforming 70.09% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that STM is not too dependend on debt financing.
A Current Ratio of 2.15 indicates that STM has no problem at all paying its short term obligations.
STM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Evaluating Growth: NYSE:STM

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:STM scores a 4 out of 10:

STM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.72% yearly.
Measured over the past years, STM shows a quite strong growth in Revenue. The Revenue has been growing by 12.33% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of STM

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.