STMicroelectronics
Market Cap
€26.1b
Last Updated
2021/05/18 18:09 UTC
Data Sources
Company Financials +
Executive Summary
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. More Details
Rewards
Risk Analysis
STM passed our risk checks.
Snowflake Analysis
Excellent balance sheet with proven track record.
Similar Companies
Share Price & News
How has STMicroelectronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STM is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: STM's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.03%
STM
-3.6%
FR Semiconductor
-0.4%
FR Market
1 Year Return
31.5%
STM
37.6%
FR Semiconductor
41.5%
FR Market
Return vs Industry: STM underperformed the French Semiconductor industry which returned 41.6% over the past year.
Return vs Market: STM underperformed the French Market which returned 48.4% over the past year.
Shareholder returns
| STM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.03% | -3.6% | -0.4% |
| 30 Day | -10.6% | -11.7% | 1.0% |
| 90 Day | -15.2% | -17.6% | 9.3% |
| 1 Year | 32.2%31.5% | 38.2%37.6% | 45.3%41.5% |
| 3 Year | 49.2%44.7% | 48.6%44.8% | 25.3%14.4% |
| 5 Year | 489.6%449.2% | 325.3%282.8% | 82.7%55.3% |
Long-Term Price Volatility Vs. Market
How volatile is STMicroelectronics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
STMicroelectronics (EPA:STM) Shareholders Will Want The ROCE Trajectory To Continue1 month ago | Simply Wall St
Why STMicroelectronics N.V. (EPA:STM) Could Be Worth Watching1 month ago | Simply Wall St
How Many STMicroelectronics N.V. (EPA:STM) Shares Have Insiders Sold, In The Last Year?Valuation
Is STMicroelectronics undervalued compared to its fair value and its price relative to the market?
8.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STM (€29.03) is trading below our estimate of fair value (€31.87)
Significantly Below Fair Value: STM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: STM is good value based on its PE Ratio (24.8x) compared to the European Semiconductor industry average (43.4x).
PE vs Market: STM is poor value based on its PE Ratio (24.8x) compared to the French market (24.5x).
Price to Earnings Growth Ratio
PEG Ratio: STM is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: STM is overvalued based on its PB Ratio (3.7x) compared to the FR Semiconductor industry average (2.9x).
Future Growth
How is STMicroelectronics forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STM's forecast earnings growth (10.3% per year) is above the savings rate (0.4%).
Earnings vs Market: STM's earnings (10.3% per year) are forecast to grow slower than the French market (19.3% per year).
High Growth Earnings: STM's earnings are forecast to grow, but not significantly.
Revenue vs Market: STM's revenue (5.9% per year) is forecast to grow slower than the French market (6.8% per year).
High Growth Revenue: STM's revenue (5.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STM's Return on Equity is forecast to be low in 3 years time (17.2%).
Past Performance
How has STMicroelectronics performed over the past 5 years?
30.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STM has high quality earnings.
Growing Profit Margin: STM's current net profit margins (11.6%) are higher than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: STM's earnings have grown significantly by 30% per year over the past 5 years.
Accelerating Growth: STM's earnings growth over the past year (22.7%) is below its 5-year average (30% per year).
Earnings vs Industry: STM earnings growth over the past year (22.7%) exceeded the Semiconductor industry 18.3%.
Return on Equity
High ROE: STM's Return on Equity (14.9%) is considered low.
Financial Health
How is STMicroelectronics's financial position?
Financial Position Analysis
Short Term Liabilities: STM's short term assets ($8.0B) exceed its short term liabilities ($3.2B).
Long Term Liabilities: STM's short term assets ($8.0B) exceed its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: STM's debt to equity ratio (34.5%) is considered satisfactory.
Reducing Debt: STM's debt to equity ratio has increased from 33% to 34.5% over the past 5 years.
Debt Coverage: STM's debt is well covered by operating cash flow (79.9%).
Interest Coverage: STM's interest payments on its debt are well covered by EBIT (52.1x coverage).
Balance Sheet
Dividend
What is STMicroelectronics's current dividend yield, its reliability and sustainability?
0.68%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STM's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.32%).
High Dividend: STM's dividend (0.68%) is low compared to the top 25% of dividend payers in the French market (3.83%).
Stability and Growth of Payments
Stable Dividend: STM is not paying a notable dividend for the French market, therefore no need to check if payments are stable.
Growing Dividend: STM is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: STM is not paying a notable dividend for the French market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of STM's dividend in 3 years as they are not forecast to pay a notable one for the French market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Jean-Marc Chery (60 yo)
3yrs
Tenure
US$6,191,857
Compensation
Mr. Jean-Marc Chery has been President, Chief Executive Officer and Member of the Managing Board of STMicroelectronics N.V. since May 31, 2018 and served as its Acting President of Human Resources & Corpor...
CEO Compensation Analysis
Compensation vs Market: Jean-Marc's total compensation ($USD6.19M) is above average for companies of similar size in the French market ($USD3.92M).
Compensation vs Earnings: Jean-Marc's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: STM's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: STM's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
STMicroelectronics N.V.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: STMicroelectronics N.V.
- Ticker: STM
- Exchange: ENXTPA
- Founded: 1987
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: €26.096b
- Shares outstanding: 898.92m
- Website: https://www.st.com
Number of Employees
Location
- STMicroelectronics N.V.
- 39 Chemin du Champ des Filles
- 1228 Plan-Les-Ouates
- Geneva
- Geneva
- Switzerland
Listings
Biography
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It opera...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/18 18:09 |
| End of Day Share Price | 2021/05/18 00:00 |
| Earnings | 2021/04/03 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.