NOT FOR DISTRIBUTION
Header cover image

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


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

STMIndustryMarket
7 Day0.03%-3.6%-0.4%
30 Day-10.6%-11.7%1.0%
90 Day-15.2%-17.6%9.3%
1 Year32.2%31.5%38.2%37.6%45.3%41.5%
3 Year49.2%44.7%48.6%44.8%25.3%14.4%
5 Year489.6%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

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

TodayMay 18 2021Ex Dividend DateJun 21 2021Dividend Pay DateJun 23 20212 days from Ex DividendBuy in the next 33 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 18:09
End of Day Share Price2021/05/18 00:00
Earnings2021/04/03
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.