STMICROELECTRONICS NV-NY SHS (STM) Stock Fundamental Analysis
NYSE:STM - New York Stock Exchange, Inc. - US8610121027 - Currency: USD
We assign a fundamental rating of 6 out of 10 to STM. STM was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. STM scores excellent on profitability, but there are some minor concerns on its financial health. STM is cheap, but on the other hand it scores bad on growth. These ratings would make STM suitable for value investing!
1. Profitability
1.1 Basic Checks
STM had positive earnings in the past year.
STM had a positive operating cash flow in the past year.
Of the past 5 years STM 4 years were profitable.
Of the past 5 years STM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STM (20.62%) is better than 95.37% of its industry peers.
Looking at the Return On Equity, with a value of 29.96%, STM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.36%, STM belongs to the best of the industry, outperforming 94.44% 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 11.92%.
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 82.41% of its industry peers.
STM's Profit Margin has improved in the last couple of years.
The Operating Margin of STM (23.58%) is better than 82.41% of its industry peers.
STM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.53%, STM perfoms like the industry average, outperforming 50.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STM is creating value.
There is no outstanding debt for STM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.16 indicates that STM is not in any danger for bankruptcy at the moment.
STM has a Altman-Z score of 4.16. This is comparable to the rest of the industry: STM outperforms 53.70% 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 has a Debt to FCF ratio of 3.81. This is in the better half of the industry: STM outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that STM is not too dependend on debt financing.
STM has a Debt to Equity ratio of 0.07. This is comparable to the rest of the industry: STM outperforms 52.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.16 |
ROIC/WACC2.11
WACC11.56%
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 65.74% of its industry peers.
A Quick Ratio of 1.74 indicates that STM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, STM is doing worse than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
STM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.78%.
Measured over the past 5 years, STM shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
EPS 1Y (TTM)-62.78%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-67.54%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-22.44%
3.2 Future
The Earnings Per Share is expected to grow by 19.92% on average over the next years. This is quite good.
STM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.12% yearly.
EPS Next Y-18.85%
EPS Next 2Y15.94%
EPS Next 3Y22.05%
EPS Next 5Y19.92%
Revenue Next Year-3.51%
Revenue Next 2Y4.75%
Revenue Next 3Y7.36%
Revenue Next 5Y9.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.76, the valuation of STM can be described as correct.
91.67% of the companies in the same industry are more expensive than STM, based on the Price/Earnings ratio.
STM is valuated cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.95, STM is valued correctly.
Based on the Price/Forward Earnings ratio, STM is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, STM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
99.07% of the companies in the same industry are more expensive than STM, based on the Enterprise Value to EBITDA ratio.
STM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STM is cheaper than 78.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.65 | ||
| EV/EBITDA | 1.84 |
4.3 Compensation for Growth
STM has an outstanding profitability rating, which may justify a higher PE ratio.
STM's earnings are expected to grow with 22.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.81
EPS Next 2Y15.94%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
STM has a Yearly Dividend Yield of 1.45%.
STM's Dividend Yield is rather good when compared to the industry average which is at 2.30. STM pays more dividend than 86.11% of the companies in the same industry.
STM's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of STM has a limited annual growth rate of 0.51%.
STM has paid a dividend for at least 10 years, which is 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.
The dividend of STM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.48%
EPS Next 2Y15.94%
EPS Next 3Y22.05%
STMICROELECTRONICS NV-NY SHS
NYSE:STM (1/31/2025, 12:31:06 PM)
22.84
+0.32 (+1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.24%
Inst Owner Change-0.53%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap20.81B
Analysts75.71
Price Target31.26 (36.87%)
Short Float %1.82%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.25
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)-2.55%
PT rev (3m)-17.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 16.95 | ||
| P/S | 0.87 | ||
| P/FCF | 26.65 | ||
| P/OCF | 3.91 | ||
| P/B | 1.17 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 1.84 |
EPS(TTM)1.66
EY7.27%
EPS(NY)1.35
Fwd EY5.9%
FCF(TTM)0.86
FCFY3.75%
OCF(TTM)5.84
OCFY25.59%
SpS26.32
BVpS19.55
TBVpS17.59
PEG (NY)N/A
PEG (5Y)1.81
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 | 4.16 |
F-Score7
WACC11.56%
ROIC/WACC2.11
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)-62.78%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-67.54%
EPS Next Y-18.85%
EPS Next 2Y15.94%
EPS Next 3Y22.05%
EPS Next 5Y19.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-22.44%
Revenue Next Year-3.51%
Revenue Next 2Y4.75%
Revenue Next 3Y7.36%
Revenue Next 5Y9.12%
EBIT growth 1Y8.83%
EBIT growth 3Y50.45%
EBIT growth 5Y26.87%
EBIT Next Year-28.05%
EBIT Next 3Y-2.06%
EBIT Next 5Y4.19%
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%