STMICROELECTRONICS NV (STMPA.PA) Stock Fundamental Analysis
EPA:STMPA - Euronext Paris - Matif - NL0000226223 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to STMPA. STMPA was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. While STMPA has a great profitability rating, there are some minor concerns on its financial health. STMPA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STMPA had positive earnings in the past year.
In the past year STMPA had a positive cash flow from operations.
STMPA had positive earnings in 4 of the past 5 years.
Of the past 5 years STMPA 4 years had a positive operating cash flow.
1.2 Ratios
STMPA's Return On Assets of 20.62% is amongst the best of the industry. STMPA outperforms 87.93% of its industry peers.
STMPA has a Return On Equity of 29.96%. This is in the better half of the industry: STMPA outperforms 72.41% of its industry peers.
STMPA has a Return On Invested Capital of 24.36%. This is amongst the best in the industry. STMPA outperforms 82.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STMPA is above the industry average of 16.14%.
The 3 year average ROIC (20.86%) for STMPA 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
Looking at the Profit Margin, with a value of 22.25%, STMPA is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
In the last couple of years the Profit Margin of STMPA has grown nicely.
STMPA has a Operating Margin of 23.58%. This is comparable to the rest of the industry: STMPA outperforms 58.62% of its industry peers.
STMPA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.53%, STMPA is in line with its industry, outperforming 44.83% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STMPA is creating value.
There is no outstanding debt for STMPA. 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 4.38 indicates that STMPA is not in any danger for bankruptcy at the moment.
STMPA has a Altman-Z score (4.38) which is comparable to the rest of the industry.
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.
With a Debt to FCF ratio value of 3.81, STMPA perfoms like the industry average, outperforming 43.10% of the companies in the same industry.
STMPA has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
STMPA has a Debt to Equity ratio of 0.07. This is in the better half of the industry: STMPA outperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.38 |
ROIC/WACC2.43
WACC10.02%
2.3 Liquidity
A Current Ratio of 2.27 indicates that STMPA has no problem at all paying its short term obligations.
STMPA has a Current ratio (2.27) which is in line with its industry peers.
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.
STMPA has a Quick ratio of 1.74. This is comparable to the rest of the industry: STMPA outperforms 55.17% of its industry peers.
| 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 -62.78%.
STMPA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.62% yearly.
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
Based on estimates for the next years, STMPA will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.92% on average per year.
The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y-41.59%
EPS Next 2Y5.01%
EPS Next 3Y14.8%
EPS Next 5Y19.92%
Revenue Next Year-12.6%
Revenue Next 2Y0.52%
Revenue Next 3Y3.29%
Revenue Next 5Y9.06%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.51, which indicates a correct valuation of STMPA.
Based on the Price/Earnings ratio, STMPA is valued a bit cheaper than 67.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, STMPA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 26.57, the valuation of STMPA can be described as expensive.
Based on the Price/Forward Earnings ratio, STMPA is valued a bit more expensive than 63.79% of the companies in the same industry.
STMPA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 26.57 |
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 96.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STMPA is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.06 | ||
| EV/EBITDA | 2.22 |
4.3 Compensation for Growth
STMPA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STMPA's earnings are expected to grow with 14.80% in the coming years.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y5.01%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
STMPA has a Yearly Dividend Yield of 1.38%.
STMPA's Dividend Yield is a higher than the industry average which is at 1.50.
Compared to an average S&P500 Dividend Yield of 2.33, STMPA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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.
STMPA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.48%
EPS Next 2Y5.01%
EPS Next 3Y14.8%
EPA:STMPA (3/7/2025, 7:00:00 PM)
23.725
-0.31 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.73%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap21.62B
Analysts75.17
Price Target28.69 (20.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.23
Dividend Growth(5Y)0.51%
DP4.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-5.25%
PT rev (3m)-9.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 26.57 | ||
| P/S | 0.98 | ||
| P/FCF | 30.06 | ||
| P/OCF | 4.41 | ||
| P/B | 1.32 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 2.22 |
EPS(TTM)1.53
EY6.45%
EPS(NY)0.89
Fwd EY3.76%
FCF(TTM)0.79
FCFY3.33%
OCF(TTM)5.38
OCFY22.69%
SpS24.24
BVpS18
TBVpS16.21
PEG (NY)N/A
PEG (5Y)2.04
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 | 4.38 |
F-Score7
WACC10.02%
ROIC/WACC2.43
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-41.59%
EPS Next 2Y5.01%
EPS Next 3Y14.8%
EPS Next 5Y19.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-22.44%
Revenue Next Year-12.6%
Revenue Next 2Y0.52%
Revenue Next 3Y3.29%
Revenue Next 5Y9.06%
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%