STMICROELECTRONICS NV (STMPA.PA)
NL0000226223 - Common Stock
Overall STMPA gets a fundamental rating of 6 out of 10. We evaluated STMPA against 50 industry peers in the Semiconductors & Semiconductor Equipment industry. STMPA has an excellent profitability rating, but there are some minor concerns on its financial health. STMPA may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, STMPA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year STMPA was profitable.
STMPA had a positive operating cash flow in the past year.
STMPA had positive earnings in each of the past 5 years.
In the past 5 years STMPA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 20.62%, STMPA belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.96%, STMPA is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 24.36%, STMPA is doing good in the industry, outperforming 74.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STMPA is above the industry average of 17.45%.
The last Return On Invested Capital (24.36%) for STMPA 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
The Profit Margin of STMPA (22.25%) is better than 64.00% of its industry peers.
STMPA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 23.58%, STMPA perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
STMPA's Operating Margin has improved in the last couple of years.
STMPA's Gross Margin of 45.53% is on the low side compared to the rest of the industry. STMPA is outperformed by 64.00% of its industry peers.
STMPA's Gross Margin has improved in the last couple of years.
| 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
STMPA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STMPA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for STMPA has been increased compared to 5 years ago.
Compared to 1 year ago, STMPA has an improved debt to assets ratio.
2.2 Solvency
STMPA has an Altman-Z score of 4.53. This indicates that STMPA is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.53, STMPA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of STMPA is 3.81, which is a good value as it means it would take STMPA, 3.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STMPA (3.81) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.07 indicates that STMPA is not too dependend on debt financing.
STMPA's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. STMPA outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.53 |
ROIC/WACC1.97
WACC12.38%
2.3 Liquidity
A Current Ratio of 2.27 indicates that STMPA has no problem at all paying its short term obligations.
With a Current ratio value of 2.27, STMPA perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
STMPA has a Quick Ratio of 1.74. This is a normal value and indicates that STMPA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.74, STMPA perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
STMPA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.60%.
STMPA 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 grown by 38.49% in the past year. This is a very strong growth!
Measured over the past years, STMPA shows a quite strong growth in Revenue. The Revenue has been growing by 12.33% on average per year.
EPS 1Y (TTM)-30.6%
EPS 3Y54.47%
EPS 5Y25.72%
EPS Q2Q%-64.15%
Revenue 1Y (TTM)38.49%
Revenue growth 3Y19.15%
Revenue growth 5Y12.33%
Sales Q2Q%-25.29%
3.2 Future
Based on estimates for the next years, STMPA will show a small growth in Earnings Per Share. The EPS will grow by 1.65% on average per year.
STMPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y-59%
EPS Next 2Y-23.07%
EPS Next 3Y-7.07%
EPS Next 5Y1.65%
Revenue Next Year-21.67%
Revenue Next 2Y-6.21%
Revenue Next 3Y-0.05%
Revenue Next 5Y3.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 8.55, the valuation of STMPA can be described as very reasonable.
96.00% of the companies in the same industry are more expensive than STMPA, based on the Price/Earnings ratio.
STMPA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.52.
With a Price/Forward Earnings ratio of 10.44, the valuation of STMPA can be described as very reasonable.
STMPA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STMPA is cheaper than 84.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STMPA to the average of the S&P500 Index (21.99), we can say STMPA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STMPA indicates a rather cheap valuation: STMPA is cheaper than 98.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STMPA is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 2.49 |
4.3 Compensation for Growth
STMPA has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as STMPA's earnings are expected to decrease with -7.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-23.07%
EPS Next 3Y-7.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, STMPA has a reasonable but not impressive dividend return.
In the last 3 months the price of STMPA has falen by -34.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
STMPA's Dividend Yield is a higher than the industry average which is at 1.32.
Compared to an average S&P500 Dividend Yield of 2.26, STMPA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of STMPA has a limited annual growth rate of 0.51%.
Dividend Growth(5Y)0.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.48% of the earnings are spent on dividend by STMPA. This is a low number and sustainable payout ratio.
The dividend of STMPA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.48%
EPS Next 2Y-23.07%
EPS Next 3Y-7.07%
STMICROELECTRONICS NV
EPA:STMPA (9/16/2024, 5:29:58 PM)
24.88
-0.87 (-3.4%)
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
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Market Cap22.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.44 | ||
| 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)0.33
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)-30.6%
EPS 3Y54.47%
EPS 5Y
EPS Q2Q%
EPS Next Y-59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.49%
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