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STM

STMicroelectronicsENXTPA:STM Stock Report

Market Cap

€34.7b

7D

4.2%

1Y

36.8%

Updated

25 Oct, 2021

Data

Company Financials +
STM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends0/6

STM Overview

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.

STMicroelectronics Competitors

X-FAB Silicon Foundries

ENXTPA:XFAB

€1.1b

Taiwan Semiconductor Manufacturing

TWSE:2330

NT$15.4t

Cisco Systems

NasdaqGS:CSCO

US$232.6b

Texas Instruments

NasdaqGS:TXN

US$184.8b

Price History & Performance

Summary of all time highs, changes and price drops for STMicroelectronics
Historical stock prices
Current Share Price€38.26
52 Week High€25.74
52 Week Low€40.40
Beta1.27
1 Month Change-3.08%
3 Month Change17.47%
1 Year Change36.77%
3 Year Change197.70%
5 Year Change340.37%
Change since IPO1,146.18%

Recent News & Updates

Oct 01
STMicroelectronics (EPA:STM) Seems To Use Debt Rather Sparingly

STMicroelectronics (EPA:STM) Seems To Use Debt Rather Sparingly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 07
Estimating The Intrinsic Value Of STMicroelectronics N.V. (EPA:STM)

Estimating The Intrinsic Value Of STMicroelectronics N.V. (EPA:STM)

In this article we are going to estimate the intrinsic value of STMicroelectronics N.V. ( EPA:STM ) by taking the...

Shareholder Returns

STMFR SemiconductorFR Market
7D4.2%5.8%1.0%
1Y36.8%43.2%37.0%

Return vs Industry: STM underperformed the French Semiconductor industry which returned 38.5% over the past year.

Return vs Market: STM exceeded the French Market which returned 35.2% over the past year.

Price Volatility

Is STM's price volatile compared to industry and market?
STM volatility
STM Beta1.27
Industry Beta1.36
Market Beta1

Stable Share Price: STM is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198746,016Jean-Marc Cheryhttps://www.st.com

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 operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs); and discrete and power transistor products.

STMicroelectronics Fundamentals Summary

How do STMicroelectronics's earnings and revenue compare to its market cap?
STM fundamental statistics
Market CapUS$40.35b
Earnings (TTM)US$1.60b
Revenue (TTM)US$11.91b

25.2x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STM income statement (TTM)
RevenueUS$11.91b
Cost of RevenueUS$7.31b
Gross ProfitUS$4.60b
ExpensesUS$3.00b
EarningsUS$1.60b

Last Reported Earnings

Jul 03, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)1.76
Gross Margin38.63%
Net Profit Margin13.44%
Debt/Equity Ratio36.3%

How did STM perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

14%

Payout Ratio

Does STM pay a reliable dividends?

See STM dividend history and benchmarks
When do you need to buy STM by to receive an upcoming dividend?
STMicroelectronics dividend dates
Ex Dividend DateDec 13 2021
Dividend Pay DateDec 15 2021
Days until Ex dividend47 days
Days until Dividend pay date49 days

Does STM pay a reliable dividends?

See STM dividend history and benchmarks

Valuation

Is STMicroelectronics undervalued compared to its fair value and its price relative to the market?

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STM (€38.26) is trading below our estimate of fair value (€45.35)

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 (25.2x) compared to the European Semiconductor industry average (46.5x).

PE vs Market: STM is poor value based on its PE Ratio (25.2x) compared to the French market (19.5x).


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 (4.7x) compared to the FR Semiconductor industry average (3.3x).


Future Growth

How is STMicroelectronics forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STM's forecast earnings growth (10.4% per year) is above the savings rate (0.3%).

Earnings vs Market: STM's earnings (10.4% per year) are forecast to grow slower than the French market (12.3% per year).

High Growth Earnings: STM's earnings are forecast to grow, but not significantly.

Revenue vs Market: STM's revenue (6.7% per year) is forecast to grow faster than the French market (6.2% per year).

High Growth Revenue: STM's revenue (6.7% 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 (18.8%).


Past Performance

How has STMicroelectronics performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STM has high quality earnings.

Growing Profit Margin: STM's current net profit margins (13.4%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: STM's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: STM's earnings growth over the past year (64.6%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: STM earnings growth over the past year (64.6%) exceeded the Semiconductor industry 63.9%.


Return on Equity

High ROE: STM's Return on Equity (18.4%) is considered low.


Financial Health

How is STMicroelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: STM's short term assets ($8.4B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: STM's short term assets ($8.4B) exceed its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: STM's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: STM's debt to equity ratio has increased from 34.7% to 36.3% over the past 5 years.

Debt Coverage: STM's debt is well covered by operating cash flow (81.8%).

Interest Coverage: STM's interest payments on its debt are well covered by EBIT (58.4x coverage).


Balance Sheet


Dividend

What is STMicroelectronics's current dividend yield, its reliability and sustainability?

0.54%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 26 2021Ex Dividend DateDec 13 2021Dividend Pay DateDec 15 20212 days from Ex DividendBuy in the next 47 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STM's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.32%).

High Dividend: STM's dividend (0.54%) is low compared to the top 25% of dividend payers in the French market (3.93%).


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?

3.4yrs

Average management tenure


CEO

Jean-Marc Chery (61 yo)

3.42yrs

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 ($USD6.19M) is above average for companies of similar size in the French market ($USD3.25M).

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 (3.4 years average tenure).


Board Members

Experienced Board: STM's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

STMicroelectronics N.V.'s 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: €34.748b
  • Shares outstanding: 908.31m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:30
End of Day Share Price2021/10/25 00:00
Earnings2021/07/03
Annual Earnings2020/12/31


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.