STMICROELECTRONICS NV-NY SHS (STM)
US8610121027
Overall STM gets a fundamental rating of 7 out of 10. We evaluated STM against 108 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, STM could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year STM was profitable.
In the past year STM had a positive cash flow from operations.
Each year in the past 5 years STM has been profitable.
In the past 5 years STM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 20.62%, STM belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
The Return On Equity of STM (29.96%) is better than 92.59% of its industry peers.
The Return On Invested Capital of STM (24.36%) is better than 95.37% of its industry peers.
STM had an Average Return On Invested Capital over the past 3 years of 20.86%. This is significantly above the industry average of 11.24%.
The last Return On Invested Capital (24.36%) for STM is above the 3 year average (20.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.62% | ||
| ROE | 29.96% | ||
| ROIC | 24.36% |
ROA(3y)16.43%
ROA(5y)11.37%
ROE(3y)25.74%
ROE(5y)18.22%
ROIC(3y)20.86%
ROIC(5y)16.88%
1.3 Margins
Looking at the Profit Margin, with a value of 22.25%, STM belongs to the top of the industry, outperforming 82.41% of the companies in the same industry.
In the last couple of years the Profit Margin of STM has grown nicely.
STM's Operating Margin of 23.58% is amongst the best of the industry. STM outperforms 81.48% of its industry peers.
STM's Operating Margin has improved in the last couple of years.
STM has a Gross Margin (45.53%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.58% | ||
| PM (TTM) | 22.25% | ||
| GM | 45.53% |
OM growth 3Y26.27%
OM growth 5Y12.94%
PM growth 3Y53.08%
PM growth 5Y7.64%
GM growth 3Y11.71%
GM growth 5Y5.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STM is creating value.
STM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, STM has more shares outstanding
The debt/assets ratio for STM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.30 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score of 4.30. This is comparable to the rest of the industry: STM outperforms 56.48% of its industry peers.
The Debt to FCF ratio of STM is 3.81, which is a good value as it means it would take STM, 3.81 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.81, STM is doing good in the industry, outperforming 62.96% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that STM is not too dependend on debt financing.
STM has a Debt to Equity ratio (0.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.3 |
ROIC/WACC2.07
WACC11.75%
2.3 Liquidity
A Current Ratio of 2.27 indicates that STM has no problem at all paying its short term obligations.
STM has a worse Current ratio (2.27) than 64.81% of its industry peers.
STM has a Quick Ratio of 1.74. 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 Quick ratio of 1.74. This is in the lower half of the industry: STM underperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The earnings per share for STM have decreased strongly by -47.63% in the last year.
STM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.72% yearly.
The Revenue has been growing slightly by 7.18% in the past year.
The Revenue has been growing by 12.33% on average over the past years. This is quite good.
EPS 1Y (TTM)-47.63%
EPS 3Y54.47%
EPS 5Y25.72%
EPS Q2Q%-68.1%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y19.15%
Revenue growth 5Y12.33%
Sales Q2Q%-26.63%
3.2 Future
STM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.82% yearly.
STM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
EPS Next Y-62.31%
EPS Next 2Y-29.32%
EPS Next 3Y-11%
EPS Next 5Y-1.82%
Revenue Next Year-23.49%
Revenue Next 2Y-8.88%
Revenue Next 3Y-2.14%
Revenue Next 5Y1.43%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 10.13, which indicates a very decent valuation of STM.
97.22% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of STM to the average of the S&P500 Index (27.73), we can say STM is valued rather cheaply.
A Price/Forward Earnings ratio of 11.05 indicates a reasonable valuation of STM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STM indicates a rather cheap valuation: STM is cheaper than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, STM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STM is valued cheaper than 99.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STM is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.72 | ||
| EV/EBITDA | 2.09 |
4.3 Compensation for Growth
STM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as STM's earnings are expected to decrease with -11.00% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-29.32%
EPS Next 3Y-11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, STM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.31, STM pays a better dividend. On top of this STM pays more dividend than 84.26% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, STM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of STM has a limited annual growth rate of 0.51%.
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)0.51%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
4.48% of the earnings are spent on dividend by STM. This is a low number and sustainable payout ratio.
DP4.48%
EPS Next 2Y-29.32%
EPS Next 3Y-11%
STMICROELECTRONICS NV-NY SHS
NYSE:STM (12/20/2024, 8:04:01 PM)
After market: 24.62 +0.01 (+0.04%)24.61
+0.13 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.24%
Inst Owner Change16.93%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.43B
Analysts77.14
Price Target33.21 (34.95%)
Short Float %1.54%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)0.51%
DP4.48%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.41%
Min EPS beat(2)-7.15%
Max EPS beat(2)0.33%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-7.15%
Max EPS beat(4)15.93%
EPS beat(8)6
Avg EPS beat(8)5.44%
EPS beat(12)9
Avg EPS beat(12)7.87%
EPS beat(16)12
Avg EPS beat(16)6.36%
Revenue beat(2)0
Avg Revenue beat(2)-4.49%
Min Revenue beat(2)-6.85%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.56%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)-1.69%
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)-15.63%
PT rev (3m)-30.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.94 | ||
| P/FCF | 28.72 | ||
| P/OCF | 4.21 | ||
| P/B | 1.26 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 2.09 |
EPS(TTM)2.43
EY9.87%
EPS(NY)2.23
Fwd EY9.05%
FCF(TTM)0.86
FCFY3.48%
OCF(TTM)5.84
OCFY23.75%
SpS26.32
BVpS19.55
TBVpS17.59
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.62% | ||
| ROE | 29.96% | ||
| ROCE | 27.38% | ||
| ROIC | 24.36% | ||
| ROICexc | 35.02% | ||
| ROICexgc | 39.96% | ||
| OM | 23.58% | ||
| PM (TTM) | 22.25% | ||
| GM | 45.53% | ||
| FCFM | 3.26% |
ROA(3y)16.43%
ROA(5y)11.37%
ROE(3y)25.74%
ROE(5y)18.22%
ROIC(3y)20.86%
ROIC(5y)16.88%
ROICexc(3y)29.23%
ROICexc(5y)23.8%
ROICexgc(3y)32.05%
ROICexgc(5y)27.07%
ROCE(3y)23.44%
ROCE(5y)18.97%
ROICexcg growth 3Y14.92%
ROICexcg growth 5Y6.25%
ROICexc growth 3Y22.13%
ROICexc growth 5Y9.71%
OM growth 3Y26.27%
OM growth 5Y12.94%
PM growth 3Y53.08%
PM growth 5Y7.64%
GM growth 3Y11.71%
GM growth 5Y5.26%
F-Score7
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 229.55% | ||
| Cap/Sales | 18.95% | ||
| Interest Coverage | 87.02 | ||
| Cash Conversion | 69.75% | ||
| Profit Quality | 14.63% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 4.3 |
F-Score7
WACC11.75%
ROIC/WACC2.07
Cap/Depr(3y)231.63%
Cap/Depr(5y)190.34%
Cap/Sales(3y)23.6%
Cap/Sales(5y)20.61%
Profit Quality(3y)47.12%
Profit Quality(5y)85.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-47.63%
EPS 3Y54.47%
EPS 5Y25.72%
EPS Q2Q%-68.1%
EPS Next Y-62.31%
EPS Next 2Y-29.32%
EPS Next 3Y-11%
EPS Next 5Y-1.82%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y19.15%
Revenue growth 5Y12.33%
Sales Q2Q%-26.63%
Revenue Next Year-23.49%
Revenue Next 2Y-8.88%
Revenue Next 3Y-2.14%
Revenue Next 5Y1.43%
EBIT growth 1Y8.83%
EBIT growth 3Y50.45%
EBIT growth 5Y26.87%
EBIT Next Year-28.05%
EBIT Next 3Y-2.06%
EBIT Next 5Y6.51%
FCF growth 1Y-28.55%
FCF growth 3Y22.25%
FCF growth 5Y23.37%
OCF growth 1Y27.26%
OCF growth 3Y37.33%
OCF growth 5Y24.68%