ENXTPA:STM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


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


Market Performance


7 Day Return

6.3%

STM

6.4%

FR Semiconductor

2.1%

FR Market


1 Year Return

32.1%

STM

32.0%

FR Semiconductor

10.2%

FR Market

Return vs Industry: STM underperformed the French Semiconductor industry which returned 32% over the past year.

Return vs Market: STM exceeded the French Market which returned 10.2% over the past year.


Shareholder returns

STMIndustryMarket
7 Day6.3%6.4%2.1%
30 Day4.2%3.0%-0.7%
90 Day19.8%15.2%-0.7%
1 Year34.1%32.1%33.6%32.0%14.1%10.2%
3 Year170.1%158.9%192.1%181.1%44.6%30.6%
5 Year318.8%263.0%287.3%231.5%76.5%50.1%

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?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: STM (€19.03) is trading below our estimate of fair value (€20.79)

Significantly Undervalued: 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 (16.7x) compared to the Semiconductor industry average (24.5x).

PE vs Market: STM is good value based on its PE Ratio (16.7x) compared to the French market (17.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: STM is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: STM is overvalued based on its PB Ratio (2.9x) compared to the FR Semiconductor industry average (1.6x).


Next Steps

Future Growth

How is STMicroelectronics forecast to perform in the next 1 to 3 years based on estimates from 20 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 (0.7%).

Earnings vs Market: STM's earnings (15.2% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: STM's revenue (6.8% per year) is forecast to grow faster than the French market (4.4% per year).

High Growth Revenue: STM's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: STM's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has STMicroelectronics performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STM has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: STM's earnings growth over the past year (7.9%) is below its 5-year average (59.2% per year).

Earnings vs Industry: STM earnings growth over the past year (7.9%) exceeded the Semiconductor industry -3%.


Return on Equity

High ROE: STM's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: STM has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: STM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is STMicroelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: STM's short term assets ($6.0B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: STM's short term assets (6.0B) exceeds its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: STM's debt to equity ratio (33.5%) is considered satisfactory

Reducing Debt: STM's debt to equity ratio has increased from 20.9% to 33.5% over the past 5 years.

Debt Coverage: STM's debt is well covered by operating cash flow (76.9%).

Interest Coverage: Insufficient data to determine if STM's interest payments on its debt are well covered by EBIT.


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 2.722770x debt).


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.1%marketbottom25%1.6%markettop25%4.7%industryaverage1.2%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STM's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: STM's dividend (1.14%) is low compared to the top 25% of dividend payers in the French market (4.67%).

Stable Dividend: STM's dividend payments have been volatile in the past 10 years.

Growing Dividend: STM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), STM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STM's dividends in 3 years are forecast to be well covered by earnings (18% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Jean-Marc Chery (59yo)

1.4yrs

Tenure

US$1,236,461

Compensation

Mr. Jean-Marc Chery has been President, CEO and Member of the Managing Board of STMicroelectronics N.V. since May 31, 2018. Mr. Chery served as the Deputy Chief Executive Officer of STMicroelectronics N.V. ...


CEO Compensation Analysis

Compensation vs. Market: Jean-Marc has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the French market.

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


Management Age and Tenure

1.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: STM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: STM's board of directors are considered experienced (5.8 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.


Ownership Breakdown


Management Team

  • Claude Dardanne (67yo)

    President of Microcontrollers & Digital ICs Group

    • Tenure: 3.8yrs
  • Marco Cassis (56yo)

    President of Sales

    • Tenure: 1.4yrs
  • Jean-Marc Chery (59yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$1.24m
  • Orio Bellezza (60yo)

    President of Technology

    • Tenure: 2.3yrs
  • Tait Sorensen (51yo)

    Group Vice President of Investor Relations

    • Tenure: 0yrs
  • Celine Berthier

    Group Vice President of Investor Relations

    • Tenure: 1yrs
  • Lorenzo Grandi (58yo)

    President of Finance

    • Tenure: 1.4yrs
  • Philippe Brun (61yo)

    President of Human Resources & Corporate Social Responsibility

    • Tenure: 1.3yrs
  • Philippe Dereeper

    Chief Compliance Officer & Executive Secretary for Supervisory Board

    • Tenure: 0yrs
  • Steve Rose (57yo)

    President of Legal Counsel

    • Tenure: 6.2yrs

Board Members

  • Pasquale Pistorio (83yo)

    Honorary Chairman

    • Tenure: 14.6yrs
    • Compensation: US$6.38m
  • Nicolas Dufourcq (56yo)

    Chairman of Supervisory Board

    • Tenure: 2.3yrs
  • Janet Davidson (63yo)

    Member of Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: US$101.00k
  • Frédéric Sanchez (59yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: US$105.50k
  • Martine Verluyten (68yo)

    Member of Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: US$149.00k
  • Jean-Georges Malcor (63yo)

    Member of Supervisory Board

    • Tenure: 8.4yrs
    • Compensation: US$98.50k
  • Maurizio Tamagnini (53yo)

    Vice Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: US$165.50k
  • Lucia Morselli (63yo)

    Member of Supervisory Board

    • Tenure: 0.4yrs
  • Heleen Kersten (54yo)

    Member of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: US$110.50k
  • Alessandro Rivera (48yo)

    Member of Supervisory Board

    • Tenure: 8.4yrs
    • 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: €16.876b
  • Shares outstanding: 886.82m
  • 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
0INBLSE (London Stock Exchange)YesCommon StockGBEURDec 1994
STMNYSE (New York Stock Exchange)NY SHS-EACH REPR 1 ORD EUR1.04USUSDDec 1994
STM NBMV (Bolsa Mexicana de Valores)NY SHS-EACH REPR 1 ORD EUR1.04MXMXNDec 1994
STMENXTPA (Euronext Paris)YesCommon StockFREURDec 1994
STMBIT (Borsa Italiana)YesCommon StockITEURDec 1994
SGMRDB (Deutsche Boerse AG)NY SHS-EACH REPR 1 ORD EUR1.04DEEURDec 1994
STME.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1994
SGMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1994
STMPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 1994
SGMRDUSE (Dusseldorf Stock Exchange)NY SHS-EACH REPR 1 ORD EUR1.04DEEURDec 1994
STMMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 1994
STMIWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1994
0L9YLSE (London Stock Exchange)NY SHS-EACH REPR 1 ORD EUR1.04GBUSDDec 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 Gr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/29
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.