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

-2.9%

STM

-0.7%

FR Semiconductor

-0.2%

FR Market


1 Year Return

9.1%

STM

12.0%

FR Semiconductor

2.7%

FR Market

STM underperformed the Semiconductor industry which returned 12% over the past year.

STM outperformed the Market in France which returned 2.7% over the past year.


Share holder returns

STMIndustryMarket
7 Day-2.9%-0.7%-0.2%
30 Day7.7%10.8%4.7%
90 Day18.4%15.7%1.7%
1 Year10.7%9.1%13.4%12.0%6.2%2.7%
3 Year157.3%146.7%184.4%173.6%43.9%30.0%
5 Year242.5%196.9%240.0%190.3%62.1%38.3%

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

3 weeks ago | Simply Wall St

Does STMicroelectronics N.V.'s (EPA:STM) P/E Ratio Signal A Buying Opportunity?

Valuation

Is STMicroelectronics undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

STMicroelectronics's share price is below the future cash flow value, but not at a moderate discount (< 20%).

STMicroelectronics's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

STMicroelectronics is good value based on earnings compared to the Europe Semiconductor industry average.

STMicroelectronics is good value based on earnings compared to the France market.


Price Based on Expected Growth

STMicroelectronics is poor value based on expected growth next year.


Price Based on Value of Assets

STMicroelectronics is overvalued based on assets compared to the FR Semiconductor industry average.


Next Steps

Future Growth

How is STMicroelectronics expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

STMicroelectronics's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

STMicroelectronics's earnings are expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).

STMicroelectronics's revenue growth is expected to exceed the France market average.

STMicroelectronics's earnings growth is expected to exceed the France market average.

STMicroelectronics's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

STMicroelectronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

STMicroelectronics has delivered over 20% year on year earnings growth in the past 5 years.

STMicroelectronics's 1-year earnings growth is less than its 5-year average (7.9% vs 59.2%)

STMicroelectronics's earnings growth has exceeded the Europe Semiconductor industry average in the past year (7.9% vs -4.9%).


Return on Equity

STMicroelectronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

STMicroelectronics used its assets more efficiently than the Europe Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

STMicroelectronics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is STMicroelectronics's financial position?


Financial Position Analysis

STMicroelectronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

STMicroelectronics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

STMicroelectronics's level of debt (33.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (20.9% vs 33.5% today).

Debt is well covered by operating cash flow (76.9%, greater than 20% of total debt).

Unable to confirm if the interest payments on STMicroelectronics's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

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

1.38%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

STMicroelectronics's pays a lower dividend yield than the bottom 25% of dividend payers in France (1.56%).

STMicroelectronics's dividend is below the markets top 25% of dividend payers in France (4.48%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jean-Marc Chery (59yo)

1.3yrs

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

Jean-Marc's remuneration is lower than average for companies of similar size in France.

Insufficient data for Jean-Marc to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

57.5yo

Average Age

The average tenure for the STMicroelectronics management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

57.5yo

Average Age

The tenure for the STMicroelectronics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Marco Cassis (56yo)

    President of Sales

    • Tenure: 1.3yrs
  • Jean-Marc Chery (59yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$1.24m
  • Orio Bellezza (60yo)

    President of Technology

    • Tenure: 2.2yrs
  • Tait Sorensen (51yo)

    Group Vice President of Investor Relations

    • Tenure: 0yrs
  • Celine Berthier

    Group Vice President of Investor Relations

    • Tenure: 0.9yrs
  • Lorenzo Grandi (58yo)

    President of Finance

    • Tenure: 1.3yrs
  • Philippe Brun (61yo)

    President of Human Resources & Corporate Social Responsibility

    • Tenure: 1.2yrs
  • Philippe Dereeper

    Chief Compliance Officer & Executive Secretary for Supervisory Board

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

    President of Legal Counsel

    • Tenure: 6.1yrs
  • Michael Anfang (51yo)

    Executive Vice President of Sales & Marketing - Europe

    • Tenure: 0.8yrs

Board Members

  • Pasquale Pistorio (83yo)

    Honorary Chairman

    • Tenure: 14.5yrs
    • 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: 7.3yrs
    • Compensation: US$149.00k
  • Jean-Georges Malcor (63yo)

    Member of Supervisory Board

    • Tenure: 8.3yrs
    • Compensation: US$98.50k
  • Maurizio Tamagnini (53yo)

    Vice Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: US$165.50k
  • Heleen Kersten (54yo)

    Member of Supervisory Board

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

    Member of Supervisory Board

    • Tenure: 8.3yrs
    • Compensation: US$103.50k
  • Michael Anfang (51yo)

    Executive Vice President of Sales & Marketing - Europe

    • Tenure: 0.8yrs

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: €15.734b
  • Shares outstanding: 887.43m
  • 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 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
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 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 Gr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 20:40
End of Day Share Price2019/09/20 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.