STMicroelectronics
Market Cap
€25.1b
Last Updated
2020/02/22 20:51 UTC
Data Sources
Company Financials +
Executive Summary
STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide.
Rewards
Risk Analysis
No risks detected for STM from our risk checks.
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
STM
-2.8%
FR Semiconductor
-0.5%
FR Market
1 Year Return
91.0%
STM
76.3%
FR Semiconductor
15.2%
FR Market
Return vs Industry: STM exceeded the French Semiconductor industry which returned 76.4% over the past year.
Return vs Market: STM exceeded the French Market which returned 15.2% over the past year.
Shareholder returns
| STM | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -2.8% | -0.5% |
| 30 Day | 4.8% | 4.4% | 1.3% |
| 90 Day | 30.0% | 21.4% | 3.5% |
| 1 Year | 93.4%91.0% | 78.1%76.3% | 19.2%15.2% |
| 3 Year | 107.7%99.9% | 99.1%91.6% | 43.8%30.2% |
| 5 Year | 304.4%254.6% | 158.0%140.4% | 52.3%30.8% |
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
Has STMicroelectronics N.V. (EPA:STM) Been Employing Capital Shrewdly?3 weeks ago | Simply Wall St
STMicroelectronics N.V. Just Recorded A 5.3% EPS Beat: Here's What Analysts Are Forecasting Next1 month ago | Simply Wall St
Is STMicroelectronics (EPA:STM) Using Too Much Debt?Valuation
Is STMicroelectronics undervalued compared to its fair value and its price relative to the market?
7.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STM (€28.3) is trading below our estimate of fair value (€30.52)
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 (26.7x) compared to the Semiconductor industry average (29x).
PE vs Market: STM is poor value based on its PE Ratio (26.7x) compared to the French market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: STM is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: STM is overvalued based on its PB Ratio (3.9x) compared to the FR Semiconductor industry average (2.6x).
Next Steps
Future Growth
How is STMicroelectronics forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
15.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STM's forecast earnings growth (15.2% per year) is above the savings rate (-0.1%).
Earnings vs Market: STM's earnings (15.2% per year) are forecast to grow faster than the French market (12.9% per year).
High Growth Earnings: STM's earnings are forecast to grow, but not significantly.
Revenue vs Market: STM's revenue (7.4% per year) is forecast to grow faster than the French market (4.6% per year).
High Growth Revenue: STM's revenue (7.4% 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 (18.1%).
Next Steps
Past Performance
How has STMicroelectronics performed over the past 5 years?
49.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STM has high quality earnings.
Growing Profit Margin: STM's current net profit margins (10.8%) are lower than last year (13.3%).
Past Earnings Growth Analysis
Earnings Trend: STM's earnings have grown significantly by 49% per year over the past 5 years.
Accelerating Growth: STM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STM had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Semiconductor industry average (-19%).
Return on Equity
High ROE: STM's Return on Equity (14.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is STMicroelectronics's financial position?
Financial Position Analysis
Short Term Liabilities: STM's short term assets ($6.3B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: STM's short term assets ($6.3B) exceed its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: STM's debt to equity ratio (26.3%) is considered satisfactory.
Reducing Debt: STM's debt to equity ratio has reduced from 35.6% to 26.3% over the past 5 years.
Debt Coverage: STM's debt is well covered by operating cash flow (93.6%).
Interest Coverage: STM earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: STM has a high level of physical assets or inventory.
Debt Coverage by Assets: STM's debt is covered by short term assets (assets are 3.3x debt).
Next Steps
Dividend
What is STMicroelectronics's current dividend yield, its reliability and sustainability?
0.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STM's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.54%).
High Dividend: STM's dividend (0.78%) is low compared to the top 25% of dividend payers in the French market (4.54%).
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?
1.8yrs
Average management tenure
CEO
Jean-Marc Chery (59yo)
1.8yrs
Tenure
US$1,236,461
Compensation
Mr. Jean-Marc Chery has been President, Chief Executive Officer and Member of the Managing Board of STMicroelectronics N.V. since May 31, 2018 and its Acting President of Human Resources & Corporate Social ...
CEO Compensation Analysis
Compensation vs Market: Jean-Marc's total compensation ($USD1.24M) is below average for companies of similar size in the French market ($USD3.31M).
Compensation vs Earnings: Insufficient data to compare Jean-Marc's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.8yrs | US$1.24m | 0.0029% $731.2k | |
| President of Finance | 1.8yrs | no data | no data | |
| President of Technology | 2.6yrs | no data | no data | |
| Group Vice President of Investor Relations | 0yrs | no data | no data | |
| Group Vice President of Investor Relations | 1.3yrs | no data | no data | |
| Chief Compliance Officer & Executive Secretary for Supervisory Board | 0yrs | no data | no data | |
| President of Legal Counsel | 6.5yrs | no data | no data | |
| President of Sales | 1.8yrs | no data | no data | |
| President of Microcontrollers & Digital ICs Group | 4.1yrs | no data | no data | |
| Executive Vice President of Europe & France Public Affairs | 1.6yrs | no data | no data |
1.8yrs
Average Tenure
58.5yo
Average Age
Experienced Management: STM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Honorary Chairman | 14.9yrs | US$6.38m | no data | |
| Chairman of Supervisory Board | 2.7yrs | no data | no data | |
| Member of Supervisory Board | 6.7yrs | US$101.00k | no data | |
| Member of Supervisory Board | 2.7yrs | US$105.50k | no data | |
| Member of Supervisory Board | 7.8yrs | US$149.00k | no data | |
| Member of Supervisory Board | 8.8yrs | US$98.50k | no data | |
| Vice Chairman of Supervisory Board | 2.7yrs | US$165.50k | no data | |
| Member of Supervisory Board | 0.8yrs | no data | no data | |
| Member of Supervisory Board | 5.7yrs | US$110.50k | no data | |
| Member of Supervisory Board | 8.8yrs | US$103.50k | no data |
6.2yrs
Average Tenure
61yo
Average Age
Experienced Board: STM's board of directors are considered experienced (6.2 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 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: €25.127b
- Shares outstanding: 887.90m
- Website: https://www.st.com
Number of Employees
Location
- STMicroelectronics N.V.
- 39 Chemin du Champ des Filles
- Plan-Les-Ouates
- Geneva
- Geneva
- 1228
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STM | NYSE (New York Stock Exchange) | NY REGISTRY | US | USD | Dec 1994 | |
| STME.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Dec 1994 |
| STM N | BMV (Bolsa Mexicana de Valores) | NY REGISTRY | MX | MXN | Dec 1994 | |
| STM | ENXTPA (Euronext Paris) | Yes | Common Stock | FR | EUR | Dec 1994 |
| STM | BIT (Borsa Italiana) | Yes | Common Stock | IT | EUR | Dec 1994 |
| SGMR | DB (Deutsche Boerse AG) | NY REGISTRY | DE | EUR | Dec 1994 | |
| 0INB | LSE (London Stock Exchange) | Yes | Common Stock | GB | EUR | Dec 1994 |
| SGM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1994 |
| STMP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | EUR | Dec 1994 |
| SGM | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 1994 |
| SGMR | DUSE (Dusseldorf Stock Exchange) | NY REGISTRY | DE | EUR | Dec 1994 | |
| STMM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | EUR | Dec 1994 |
| STMI | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Dec 1994 |
| 0L9Y | LSE (London Stock Exchange) | NY REGISTRY | GB | USD | Dec 1994 |
Biography
STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, assembly, and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 20:51 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.