ENXTPA:STM

Stock Analysis Report

Executive Summary

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

STM

7.7%

FR Semiconductor

-1.4%

FR Market


1 Year Return

93.0%

STM

79.9%

FR Semiconductor

21.1%

FR Market

Return vs Industry: STM exceeded the French Semiconductor industry which returned 93.6% over the past year.

Return vs Market: STM exceeded the French Market which returned 24.9% over the past year.


Shareholder returns

STMIndustryMarket
7 Day10.3%7.7%-1.4%
30 Day14.2%11.2%0.5%
90 Day37.3%29.1%5.9%
1 Year95.5%93.0%81.8%79.9%25.4%21.1%
3 Year130.7%121.9%103.0%95.4%43.2%29.6%
5 Year327.5%274.9%168.0%149.9%63.1%39.5%

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?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STM (€27.74) is trading below our estimate of fair value (€28.6)

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 (23.6x) compared to the Semiconductor industry average (29x).

PE vs Market: STM is poor value based on its PE Ratio (23.6x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: STM is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: STM is overvalued based on its PB Ratio (3.8x) compared to the FR Semiconductor industry average (2.9x).


Next Steps

Future Growth

How is STMicroelectronics forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STM's forecast earnings growth (16.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: STM's earnings (16.3% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STM's revenue (7.2% per year) is forecast to grow faster than the French market (4.7% per year).

High Growth Revenue: STM's revenue (7.2% 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 (17.5%).


Next Steps

Past Performance

How has STMicroelectronics performed over the past 5 years?

53.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STM has high quality earnings.

Growing Profit Margin: STM's current net profit margins (11.2%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: STM's earnings have grown significantly by 53.4% 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 (-10%) over the past year, making it difficult to compare to the Semiconductor industry average (-19.6%).


Return on Equity

High ROE: STM's Return on Equity (15.7%) 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 ($6.1B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: STM's short term assets ($6.1B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: STM's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: STM's debt to equity ratio has reduced from 36.4% to 32.4% over the past 5 years.

Debt Coverage: STM's debt is well covered by operating cash flow (79.9%).

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 2.8x debt).


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Upcoming Dividend Payment

Purchase STMicroelectronics before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%4.5%industryaverage1.2%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: STM's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: STM's dividend (0.86%) is low compared to the top 25% of dividend payers in the French market (4.43%).


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

What is the CEO of STMicroelectronics's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Jean-Marc Chery (59yo)

1.7yrs

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 ($USD1.24M) is below average for companies of similar size in the French market ($USD3.59M).

Compensation vs Earnings: Insufficient data to compare Jean-Marc's compensation with company performance.


Management Age and Tenure

1.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: STM's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

61yo

Average Age

Experienced Board: STM's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell€189,67220 Jun 19
Jean-Marc Chery
EntityIndividual
Role
Chief Executive Officer
President
Shares12,653
Max Price€14.99
Sell€210,30331 May 19
Jean-Marc Chery
EntityIndividual
Role
Chief Executive Officer
President
Shares15,352
Max Price€13.70
Sell€85,86225 May 19
Jean-Marc Chery
EntityIndividual
Role
Chief Executive Officer
President
Shares6,323
Max Price€13.58

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Claude Dardanne (67yo)

    President of Microcontrollers & Digital ICs Group

    • Tenure: 4yrs
  • Marco Cassis (56yo)

    President of Sales

    • Tenure: 1.7yrs
  • Thierry Tingaud (60yo)

    Executive VP of Europe & France Publ Affairs

    • Tenure: 1.5yrs
  • Jean-Marc Chery (59yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$1.24m
  • Orio Bellezza (60yo)

    President of Technology

    • Tenure: 2.5yrs
  • Tait Sorensen (51yo)

    Group Vice President of Investor Relations

    • Celine Berthier

      Group Vice President of Investor Relations

      • Tenure: 1.3yrs
    • Lorenzo Grandi (58yo)

      President of Finance

      • Tenure: 1.7yrs
    • Philippe Dereeper

      Chief Compliance Officer & Executive Secretary for Supervisory Board

      • Steve Rose (57yo)

        President of Legal Counsel

        • Tenure: 6.4yrs

      Board Members

      • Pasquale Pistorio (83yo)

        Honorary Chairman

        • Tenure: 14.8yrs
        • Compensation: US$6.38m
      • Nicolas Dufourcq (56yo)

        Chairman of Supervisory Board

        • Tenure: 2.6yrs
      • Janet Davidson (63yo)

        Member of Supervisory Board

        • Tenure: 6.6yrs
        • Compensation: US$101.00k
      • Frédéric Sanchez (59yo)

        Member of Supervisory Board

        • Tenure: 2.6yrs
        • Compensation: US$105.50k
      • Martine Verluyten (68yo)

        Member of Supervisory Board

        • Tenure: 7.7yrs
        • Compensation: US$149.00k
      • Jean-Georges Malcor (63yo)

        Member of Supervisory Board

        • Tenure: 8.7yrs
        • Compensation: US$98.50k
      • Maurizio Tamagnini (53yo)

        Vice Chairman of Supervisory Board

        • Tenure: 2.6yrs
        • Compensation: US$165.50k
      • Lucia Morselli (63yo)

        Member of Supervisory Board

        • Tenure: 0.7yrs
      • Heleen Kersten (54yo)

        Member of Supervisory Board

        • Tenure: 5.6yrs
        • Compensation: US$110.50k
      • Alessandro Rivera (48yo)

        Member of Supervisory Board

        • Tenure: 8.7yrs
        • Compensation: US$103.50k

      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: €24.707b
      • Shares outstanding: 890.67m
      • 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

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      SGMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1994
      STMNYSE (New York Stock Exchange)NY REGISTRYUSUSDDec 1994
      STM NBMV (Bolsa Mexicana de Valores)NY REGISTRYMXMXNDec 1994
      STMENXTPA (Euronext Paris)YesCommon StockFREURDec 1994
      STMBIT (Borsa Italiana)YesCommon StockITEURDec 1994
      SGMRDB (Deutsche Boerse AG)NY REGISTRYDEEURDec 1994
      0INBLSE (London Stock Exchange)YesCommon StockGBEURDec 1994
      STME.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1994
      STMPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 1994
      SGMXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1994
      SGMRDUSE (Dusseldorf Stock Exchange)NY REGISTRYDEEURDec 1994
      STMMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 1994
      STMIWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1994
      0L9YLSE (London Stock Exchange)NY REGISTRYGBUSDDec 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, and 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

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 20:43
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/28
      Annual Earnings2018/12/31


      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.