STMICROELECTRONICS NV (STMPA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:STMPA - NL0000226223 - Common Stock
24.435 EUR
+0.43 (+1.81%)
STMPA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. STMPA has an average financial health and profitability rating. STMPA is quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years STMPA had a positive operating cash flow.
1.2 Ratios
- STMPA's Return On Assets of 3.42% is on the low side compared to the rest of the industry. STMPA is outperformed by 66.67% of its industry peers.
- STMPA has a Return On Equity of 4.84%. This is in the lower half of the industry: STMPA underperforms 69.57% of its industry peers.
- The Return On Invested Capital of STMPA (3.12%) is worse than 81.16% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for STMPA is above the industry average of 14.31%.
- The last Return On Invested Capital (3.12%) for STMPA is well below the 3 year average (17.60%), which needs to be investigated, but indicates that STMPA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 4.84% | ||
| ROIC | 3.12% |
ROA(3y)15.52%
ROA(5y)12.31%
ROE(3y)23.34%
ROE(5y)19.28%
ROIC(3y)17.6%
ROIC(5y)15.93%
1.3 Margins
- With a Profit Margin value of 7.65%, STMPA is not doing good in the industry: 63.77% of the companies in the same industry are doing better.
- STMPA's Profit Margin has improved in the last couple of years.
- STMPA has a Operating Margin of 6.48%. This is amonst the worse of the industry: STMPA underperforms 82.61% of its industry peers.
- In the last couple of years the Operating Margin of STMPA has grown nicely.
- STMPA has a Gross Margin of 32.96%. This is amonst the worse of the industry: STMPA underperforms 86.96% of its industry peers.
- In the last couple of years the Gross Margin of STMPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.48% | ||
| PM (TTM) | 7.65% | ||
| GM | 32.96% |
OM growth 3Y-10.78%
OM growth 5Y1.94%
PM growth 3Y3.75%
PM growth 5Y29.89%
GM growth 3Y-1.89%
GM growth 5Y1.17%
2. Health
2.1 Basic Checks
- STMPA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for STMPA has been reduced compared to 1 year ago.
- The number of shares outstanding for STMPA has been increased compared to 5 years ago.
- The debt/assets ratio for STMPA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.51 indicates that STMPA is not in any danger for bankruptcy at the moment.
- STMPA has a Altman-Z score of 3.51. This is in the lower half of the industry: STMPA underperforms 69.57% of its industry peers.
- STMPA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of STMPA (0.06) is better than 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.51 |
ROIC/WACC0.29
WACC10.71%
2.3 Liquidity
- A Current Ratio of 2.32 indicates that STMPA has no problem at all paying its short term obligations.
- STMPA has a Current ratio (2.32) which is in line with its industry peers.
- STMPA has a Quick Ratio of 1.66. This is a normal value and indicates that STMPA is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.66, STMPA is in line with its industry, outperforming 42.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
- The earnings per share for STMPA have decreased strongly by -67.49% in the last year.
- Measured over the past 5 years, STMPA shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
- Looking at the last year, STMPA shows a very negative growth in Revenue. The Revenue has decreased by -23.24% in the last year.
- The Revenue has been growing slightly by 6.79% on average over the past years.
EPS 1Y (TTM)-67.49%
EPS 3Y-8.4%
EPS 5Y7.62%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)-23.24%
Revenue growth 3Y1.31%
Revenue growth 5Y6.79%
Sales Q2Q%-1.97%
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 10.29% on average per year.
- STMPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y-61.78%
EPS Next 2Y-15.43%
EPS Next 3Y6.58%
EPS Next 5Y10.29%
Revenue Next Year-11.33%
Revenue Next 2Y-0.91%
Revenue Next 3Y2.84%
Revenue Next 5Y5.51%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- STMPA is valuated quite expensively with a Price/Earnings ratio of 36.47.
- The rest of the industry has a similar Price/Earnings ratio as STMPA.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, STMPA is valued a bit more expensive.
- The Price/Forward Earnings ratio is 24.36, which indicates a rather expensive current valuation of STMPA.
- Based on the Price/Forward Earnings ratio, STMPA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- STMPA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.47 | ||
| Fwd PE | 24.36 |
4.2 Price Multiples
- 91.30% of the companies in the same industry are more expensive than STMPA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.79
EPS Next 2Y-15.43%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.46%, STMPA has a reasonable but not impressive dividend return.
- STMPA's Dividend Yield is rather good when compared to the industry average which is at 0.74. STMPA pays more dividend than 85.51% of the companies in the same industry.
- STMPA's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
- The dividend of STMPA has a limited annual growth rate of 5.99%.
Dividend Growth(5Y)5.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 35.28% 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.
DP35.28%
EPS Next 2Y-15.43%
EPS Next 3Y6.58%
STMICROELECTRONICS NV / STMPA.PA FAQ
What is the ChartMill fundamental rating of STMICROELECTRONICS NV (STMPA.PA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to STMPA.PA.
What is the valuation status for STMPA stock?
ChartMill assigns a valuation rating of 2 / 10 to STMICROELECTRONICS NV (STMPA.PA). This can be considered as Overvalued.
Can you provide the profitability details for STMICROELECTRONICS NV?
STMICROELECTRONICS NV (STMPA.PA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for STMPA stock?
The Price/Earnings (PE) ratio for STMICROELECTRONICS NV (STMPA.PA) is 36.47 and the Price/Book (PB) ratio is 1.41.
What is the earnings growth outlook for STMICROELECTRONICS NV?
The Earnings per Share (EPS) of STMICROELECTRONICS NV (STMPA.PA) is expected to decline by -61.78% in the next year.