STMICROELECTRONICS NV-NY SHS (STM)
US8610121027
STM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While STM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STM is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make STM a good candidate for value investing.
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.
Each year in the past 5 years STM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STM (20.62%) is better than 96.30% of its industry peers.
STM's Return On Equity of 29.96% is amongst the best of the industry. STM outperforms 92.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.36%, STM belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
STM had an Average Return On Invested Capital over the past 3 years of 20.86%. This is significantly above the industry average of 11.05%.
The 3 year average ROIC (20.86%) for STM is below the current ROIC(24.36%), indicating increased profibility in the last year.
| 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
STM's Profit Margin of 22.25% is amongst the best of the industry. STM outperforms 81.48% of its industry peers.
STM's Profit Margin has improved in the last couple of years.
STM has a better Operating Margin (23.58%) than 82.41% of its industry peers.
In the last couple of years the Operating Margin of STM has grown nicely.
With a Gross Margin value of 45.53%, STM perfoms like the industry average, outperforming 49.07% of the companies in the same 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
STM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
STM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score of 4.26. This is comparable to the rest of the industry: STM outperforms 58.33% 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.
STM's Debt to FCF ratio of 3.81 is fine compared to the rest of the industry. STM outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that STM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.07, STM perfoms like the industry average, outperforming 54.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.26 |
ROIC/WACC2.05
WACC11.9%
2.3 Liquidity
STM has a Current Ratio of 2.27. This indicates that STM is financially healthy and has no problem in meeting its short term obligations.
STM's Current ratio of 2.27 is on the low side compared to the rest of the industry. STM is outperformed by 67.59% of its industry peers.
A Quick Ratio of 1.74 indicates that STM should not have too much problems paying its short term obligations.
The Quick ratio of STM (1.74) is worse than 60.19% 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.
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.
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
The Earnings Per Share is expected to grow by 1.65% on average over the next years.
Based on estimates for the next years, STM will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y-62.31%
EPS Next 2Y-29.32%
EPS Next 3Y-11%
EPS Next 5Y1.65%
Revenue Next Year-23.49%
Revenue Next 2Y-8.88%
Revenue Next 3Y-2.14%
Revenue Next 5Y3.54%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.10 indicates a reasonable valuation of STM.
97.22% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, STM is valued rather cheaply.
A Price/Forward Earnings ratio of 11.01 indicates a reasonable valuation of STM.
STM's Price/Forward Earnings ratio is rather cheap when compared to the industry. STM is cheaper than 93.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. STM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
STM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STM is 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 | 28.06 | ||
| EV/EBITDA | 2.01 |
4.3 Compensation for Growth
The excellent profitability rating of STM 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
STM has a Yearly Dividend Yield of 1.35%.
The stock price of STM dropped by -22.42% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.37, 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 2.23, STM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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
STM pays out 4.48% of its income as dividend. This is a sustainable payout ratio.
STM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.48%
EPS Next 2Y-29.32%
EPS Next 3Y-11%
STMICROELECTRONICS NV-NY SHS
NYSE:STM (11/21/2024, 8:04:01 PM)
After market: 24.41 -0.13 (-0.53%)24.54
+0.04 (+0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 11.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.62% | ||
| ROE | 29.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.58% | ||
| PM (TTM) | 22.25% | ||
| GM | 45.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-47.63%
EPS 3Y54.47%
EPS 5Y
EPS Q2Q%
EPS Next Y-62.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.18%
Revenue growth 3Y19.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y