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STMicroelectronics

NYSE:STM
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STM
NYSE
€13B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. The last earnings update was 53 days ago. More info.


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STM Share Price and Events
7 Day Returns
7.4%
NYSE:STM
3.7%
US Semiconductor
2.2%
US Market
1 Year Returns
-27.3%
NYSE:STM
-5.5%
US Semiconductor
3.8%
US Market
STM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
STMicroelectronics (STM) 7.4% 11.4% 7.8% -27.3% 202.1% 88.7%
US Semiconductor 3.7% 6.6% -1.9% -5.5% 79.8% 85.8%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • STM underperformed the Semiconductor industry which returned -5.5% over the past year.
  • STM underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
STM
Industry
5yr Volatility vs Market
Related Companies

STM Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of STMicroelectronics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for STMicroelectronics.

NYSE:STM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:STM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.228 (1 + (1- 18%) (15.87%))
1.26
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.26 * 5.96%)
10.24%

Discounted Cash Flow Calculation for NYSE:STM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for STMicroelectronics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:STM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.24%)
2019 663.72 Analyst x8 602.08
2020 976.00 Analyst x2 803.14
2021 1,154.36 Analyst x6 861.69
2022 1,052.00 Analyst x1 712.35
2023 1,659.00 Analyst x1 1,019.05
2024 1,859.49 Est @ 12.08% 1,036.13
2025 2,032.02 Est @ 9.28% 1,027.11
2026 2,180.64 Est @ 7.31% 999.87
2027 2,310.14 Est @ 5.94% 960.88
2028 2,425.10 Est @ 4.98% 915.02
Present value of next 10 years cash flows $8,937.34
NYSE:STM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,425.10 × (1 + 2.73%) ÷ (10.24% – 2.73%)
$33,183.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $33,183.64 ÷ (1 + 10.24%)10
$12,520.61
NYSE:STM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,937.34 + $12,520.61
$21,457.95
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21,457.95 / 890.64
$21.25
NYSE:STM Discount to Share Price
Calculation Result
Exchange Rate USD/EUR
(Reporting currency to currency of ENXTPA:STM)
0.883
Value per Share
(EUR)
= Value per Share in USD x Exchange Rate (USD/EUR)
= $24.09 x 0.883
€21.28
Value per share (USD) From above. $24.12
Current discount Discount to share price of $16.98
= -1 x ($16.98 - $24.12) / $24.12
29.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price STMicroelectronics is available for.
Intrinsic value
30%
Share price is $16.98 vs Future cash flow value of $24.12
Current Discount Checks
For STMicroelectronics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • STMicroelectronics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • STMicroelectronics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for STMicroelectronics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are STMicroelectronics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:STM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $1.36
ENXTPA:STM Share Price ** ENXTPA (2019-06-21) in EUR €14.98
ENXTPA:STM Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.132 $16.96
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 22.73x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of STMicroelectronics.

NYSE:STM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTPA:STM Share Price ÷ EPS (both in USD)

= 16.96 ÷ 1.36

12.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STMicroelectronics is good value based on earnings compared to the US Semiconductor industry average.
  • STMicroelectronics is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does STMicroelectronics's expected growth come at a high price?
Raw Data
NYSE:STM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
13.9%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 64 Publicly-Listed Semiconductor Companies 1.09x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:STM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.44x ÷ 13.9%

0.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STMicroelectronics is good value based on expected growth next year.
Price based on value of assets
What value do investors place on STMicroelectronics's assets?
Raw Data
NYSE:STM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $7.24
ENXTPA:STM Share Price * ENXTPA (2019-06-21) in EUR €14.98
ENXTPA:STM Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.132 $16.96
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.52x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:STM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTPA:STM Share Price ÷ Book Value per Share (both in USD)

= 16.96 ÷ 7.24

2.34x

* Primary Listing of STMicroelectronics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STMicroelectronics is good value based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess STMicroelectronics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. STMicroelectronics has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STM Future Performance

 How is STMicroelectronics expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is STMicroelectronics expected to grow at an attractive rate?
  • STMicroelectronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • STMicroelectronics's earnings growth is positive but not above the United States of America market average.
  • STMicroelectronics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:STM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:STM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 13.9%
NYSE:STM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 6.4%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:STM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:STM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 12,792 3,179 1,807 1
2022-12-31 11,763 2,910 1,697 2
2021-12-31 10,957 2,487 1,426 12
2020-12-31 10,120 1,923 1,255 7
2019-12-31 9,615 1,700 1,006 19
NYSE:STM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 9,514 1,731 1,226
2018-12-31 9,664 1,845 1,287
2018-09-29 9,483 2,070 593
2018-06-30 9,097 2,134 460
2018-03-31 8,752 1,843 933
2017-12-31 8,347 1,677 802
2017-09-30 7,740 1,738 562
2017-07-01 7,401 1,770 397
2017-04-01 7,181 1,460 270
2016-12-31 6,973 1,043 165
2016-10-01 6,781 910 55
2016-07-02 6,748 803 74
2016-04-02 6,805 834 85

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • STMicroelectronics's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • STMicroelectronics's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:STM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from STMicroelectronics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.64 1.64 1.64 1.00
2020-12-31 1.42 1.66 1.30 10.00
2019-12-31 1.11 1.11 1.11 1.00
NYSE:STM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 1.36
2018-12-31 1.43
2018-09-29 0.66
2018-06-30 0.52
2018-03-31 1.05
2017-12-31 0.91
2017-09-30 0.64
2017-07-01 0.45
2017-04-01 0.31
2016-12-31 0.19
2016-10-01 0.06
2016-07-02 0.08
2016-04-02 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • STMicroelectronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess STMicroelectronics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
STMicroelectronics has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STM Past Performance

  How has STMicroelectronics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare STMicroelectronics's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (31.6% vs 62.7%)
  • STMicroelectronics's earnings growth has exceeded the US Semiconductor industry average in the past year (31.6% vs 22.6%).
Earnings and Revenue History
STMicroelectronics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from STMicroelectronics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 9,514.00 1,226.00 1,113.00 1,417.00
2018-12-31 9,664.00 1,287.00 1,106.00 1,398.00
2018-09-29 9,483.00 593.00 1,094.00 1,138.00
2018-06-30 9,097.00 460.00 1,070.00 1,102.00
2018-03-31 8,752.00 933.00 1,024.00 1,313.00
2017-12-31 8,347.00 802.00 993.00 1,296.00
2017-09-30 7,740.00 562.00 978.00 1,095.00
2017-07-01 7,401.00 397.00 955.00 1,101.00
2017-04-01 7,181.00 270.00 941.00 1,111.00
2016-12-31 6,973.00 165.00 920.00 1,331.00
2016-10-01 6,781.00 55.00 912.00 1,348.00
2016-07-02 6,748.00 74.00 906.00 1,361.00
2016-04-02 6,805.00 85.00 904.00 1,398.00
2015-12-31 6,897.00 104.00 897.00 1,425.00
2015-09-26 7,058.00 145.00 902.00 1,449.00
2015-06-27 7,180.00 127.00 910.00 1,495.00
2015-03-28 7,284.00 130.00 921.00 1,511.00
2014-12-31 7,404.00 128.00 927.00 1,520.00
2014-09-27 7,590.00 49.00 940.00 1,551.00
2014-06-28 7,716.00 -165.00 967.00 1,597.00
2014-03-29 7,898.00 -353.00 1,015.00 1,661.00
2013-12-31 8,082.00 -500.00 1,066.00 1,816.00
2013-09-28 8,229.00 -892.00 1,107.00 1,994.00
2013-06-29 8,383.00 -1,228.00 1,128.00 2,149.00
2013-03-30 8,485.00 -1,153.00 1,135.00 2,313.00
2012-12-31 8,493.00 -1,158.00 1,166.00 2,413.00
2012-09-29 8,523.00 -741.00 1,162.00 2,442.00
2012-06-30 8,799.00 -192.00 1,190.00 2,461.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • STMicroelectronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • STMicroelectronics used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • STMicroelectronics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess STMicroelectronics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
STMicroelectronics has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STM Health

 How is STMicroelectronics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up STMicroelectronics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of STMicroelectronics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from STMicroelectronics Company Filings, last reported 2 months ago.

NYSE:STM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 6,613.00 2,397.00 2,638.00
2018-12-31 6,424.00 1,910.00 2,596.00
2018-09-29 6,052.00 1,724.00 2,171.00
2018-06-30 5,989.00 1,710.00 2,127.00
2018-03-31 5,769.00 1,712.00 2,234.00
2017-12-31 5,467.00 1,701.00 2,190.00
2017-09-30 5,149.00 2,175.00 2,621.00
2017-07-01 4,900.00 1,465.00 1,989.00
2017-04-01 4,772.00 1,458.00 1,976.00
2016-12-31 5,266.00 1,454.00 1,964.00
2016-10-01 4,645.00 1,553.00 2,017.00
2016-07-02 4,559.00 1,601.00 2,027.00
2016-04-02 4,817.00 1,601.00 2,040.00
2015-12-31 4,693.00 1,612.00 2,106.00
2015-09-26 4,733.00 1,748.00 2,207.00
2015-06-27 5,271.00 1,785.00 2,223.00
2015-03-28 4,761.00 1,775.00 2,287.00
2014-12-31 5,055.00 1,801.00 2,351.00
2014-09-27 5,400.00 1,966.00 2,460.00
2014-06-28 5,495.00 1,130.00 1,553.00
2014-03-29 5,675.00 1,133.00 1,745.00
2013-12-31 5,717.00 1,153.00 1,894.00
2013-09-28 5,806.00 787.00 1,526.00
2013-06-29 5,677.00 964.00 1,773.00
2013-03-30 5,948.00 897.00 1,906.00
2012-12-31 6,364.00 1,301.00 2,489.00
2012-09-29 6,329.00 1,558.00 1,923.00
2012-06-30 7,010.00 1,535.00 2,065.00
  • STMicroelectronics's level of debt (33.1%) 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% vs 33.1% today).
  • Debt is well covered by operating cash flow (79.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 667.5x coverage).
X
Financial health checks
We assess STMicroelectronics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. STMicroelectronics has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.42%
Current annual income from STMicroelectronics dividends. Estimated to be 1.62% next year.
If you bought $2,000 of STMicroelectronics shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • STMicroelectronics's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • STMicroelectronics's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:STM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:STM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.30 12.00
2020-12-31 0.28 17.00
2019-12-31 0.25 17.00
NYSE:STM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.240 1.439
2018-03-27 0.240 1.336
2017-05-08 0.240 1.235
2017-04-27 0.240 1.480
2016-04-01 0.240 2.898
2014-06-13 0.400 5.069
2014-05-06 0.400 4.142
2014-03-05 0.400 4.333
2014-01-27 0.400 4.753
2013-03-04 0.400 4.749
2012-08-03 0.400 6.104
2012-04-23 0.400 7.705
2011-04-27 0.400 5.409
2010-04-22 0.280 3.042
2010-04-19 0.280 2.693

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STMicroelectronics has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • STMicroelectronics has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of STMicroelectronics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.2x coverage).
X
Income/ dividend checks
We assess STMicroelectronics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can STMicroelectronics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. STMicroelectronics has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STM Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jean-Marc Chery
COMPENSATION $1,236,461
AGE 58
TENURE AS CEO 1.1 years
CEO Bio

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. from July 1, 2017 to May 31, 2018 and also served as its Chief Operating Officer from April 28, 2014 to July 1, 2017 and served as its General Manager of the Embedded Processing Solutions Segment since May 22, 2013. Mr. Chery served as Chief Manufacturing Officer, Chief Technology Officer and Executive Vice President at STMicroelectronics N.V. since January 2008 and served as its General Manager of Digital Sector until May 22, 2013. He served as Executive Vice President and General Manager of front- and back-end manufacturing operations in Asia-Pacific of STMicroelectronics N.V. He joined the Discrete Division of Thomson Semiconductors in 1985 and early in 2001, he joined ST's Central Front-End Manufacturing organization as General Manager of the Rousset 8 (200mm) plant orchestrating the expansion of 8 production. He later moved to Singapore, where he led ST's 6 wafer restructuring and managed ST's Asia-Pacific Fabs, the largest highest capacity fabs. He worked in Quality organization of Matra, the French engineering group. In 1986, he joined Thomson Semi conducteurs, which subsequently became ST, and held various management positions in product planning and manufacturing, rising to lead ST's wafer fabs in Tours, France, and later in Rousset, France. In 2005, Chery tookcharge of ST's Front-End Manufacturing in Asia Pacific. He assumed additional responsibilities for Manufacturing and Quality (2011) and the Digital Product Sector (2012). Chery chairs the Board of STS, ST's manufacturing joint venture in China, and holds board membership at the European microelectronics R&D program AENEAS. He graduated from the National Superior School for Engineering, ENSAM France in 1984.

CEO Compensation
  • Insufficient data for Jean-Marc to compare compensation growth.
  • Jean-Marc's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the STMicroelectronics management team in years:

1.1
Average Tenure
56.5
Average Age
  • The average tenure for the STMicroelectronics management team is less than 2 years, this suggests a new team.
Management Team

Jean-Marc Chery

TITLE
President
COMPENSATION
$1M
AGE
58
TENURE
1.1 yrs

Michael Anfang

TITLE
Executive Vice President of Sales & Marketing - Europe
AGE
50
TENURE
0.6 yrs

Lorenzo Grandi

TITLE
President of Finance
AGE
57
TENURE
1.1 yrs

Orio Bellezza

TITLE
President of Technology
AGE
59
TENURE
1.9 yrs

Tait Sorensen

TITLE
Group Vice President of Investor Relations
AGE
50

Celine Berthier

TITLE
Group Vice President of Investor Relations
TENURE
0.7 yrs

Philippe Dereeper

TITLE
Chief Compliance Officer & Executive Secretary for Supervisory Board

Steve Rose

TITLE
President of Legal Counsel
AGE
56
TENURE
5.8 yrs

Marco Cassis

TITLE
President of Sales
AGE
55
TENURE
1.1 yrs

Philippe Brun

TITLE
President of Human Resources & Corporate Social Responsibility
AGE
60
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the STMicroelectronics board of directors in years:

5.5
Average Tenure
56.5
Average Age
  • The tenure for the STMicroelectronics board of directors is about average.
Board of Directors

Nicolas Dufourcq

TITLE
Chairman of Supervisory Board
AGE
55
TENURE
2 yrs

Michael Anfang

TITLE
Executive Vice President of Sales & Marketing - Europe
AGE
50
TENURE
0.6 yrs

Maurizio Tamagnini

TITLE
Vice Chairman of Supervisory Board
COMPENSATION
$166K
AGE
52
TENURE
2 yrs

Pasquale Pistorio

TITLE
Honorary Chairman
COMPENSATION
$6M
AGE
82
TENURE
14.3 yrs

Martine Verluyten

TITLE
Member of Supervisory Board
COMPENSATION
$149K
AGE
67
TENURE
7.1 yrs

Heleen Kersten

TITLE
Member of Supervisory Board
COMPENSATION
$111K
AGE
53
TENURE
5 yrs

Jean-Georges Malcor

TITLE
Member of Supervisory Board
COMPENSATION
$99K
AGE
62
TENURE
8.1 yrs

Alessandro Rivera

TITLE
Member of Supervisory Board
COMPENSATION
$104K
AGE
47
TENURE
8.1 yrs

Janet Davidson

TITLE
Member of Supervisory Board
COMPENSATION
$101K
AGE
62
TENURE
6 yrs

Frédéric Sanchez

TITLE
Member of Supervisory Board
COMPENSATION
$106K
AGE
58
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess STMicroelectronics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. STMicroelectronics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STM News

Simply Wall St News

Was STMicroelectronics NV.'s (NYSE:STM) Earnings Growth Better Than The Industry's?

Today I will take a look at STMicroelectronics NV.'s (NYSE:STM) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the semiconductor industry performed. … See our latest analysis for STMicroelectronics How Did STM's Recent Performance Stack Up Against Its Past? … Given that these values are somewhat short-term, I’ve computed an annualized five-year figure for STM's net income, which stands at -US$25.89M This means that, on average, STMicroelectronics has been able to consistently raise its earnings over the last couple of years as well.

Simply Wall St -

Does STMicroelectronics NV.'s (NYSE:STM) PE Ratio Warrant A Sell?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for STM Price per share = $21.58 Earnings per share = $0.246 ∴ Price-Earnings Ratio = $21.58 ÷ $0.246 = 87.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Since STM's P/E of 87.6x is higher than its industry peers (24.2x), it means that investors are paying more than they should for each dollar of STM's earnings. … For example, if you are inadvertently comparing riskier firms with STM, then STM’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Are STMicroelectronics NV.'s (NYSE:STM) Interest Costs Too High?

STM has built up its total debt levels in the last twelve months, from US$1.45B to US$1.70B , which is made up of current and long term debt. … On top of this, STM has produced cash from operations of US$1.71B over the same time period, resulting in an operating cash to total debt ratio of 100.35%, indicating that STM’s current level of operating cash is high enough to cover debt. … Next Steps: STM’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

How STMicroelectronics NV (NYSE:STM) Delivered A Better ROE Than Its Industry

Check out our latest analysis for STMicroelectronics Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs STMicroelectronics’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity Returns are usually compared to costs to measure the efficiency of capital. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:STM Last Perf Jan 16th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Is It Too Late To Buy STMicroelectronics NV (NYSE:STM) At Its January Price?

STMicroelectronics is trading at price-to-earnings (PE) ratio of 33.91x, this tells us the stock is overvalued compared to the US market average ratio of 19.74x , and overvalued based on current earnings compared to the semiconductors and semiconductor equipment industry average of 20.32x. … NYSE:STM PE PEG Gauge Jan 5th 18 After looking at STM's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … However, seeing as STMicroelectronics is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.

Simply Wall St -

How Do Analysts See STMicroelectronics NV's (NYSE:STM) Margin Performing In The Years Ahead?

To get a preliminary understanding, I will try to evaluate STMicroelectronics's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for STM Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 606.00 Million ÷ 7.74 Billion = 7.83% The past five years have seen STMicroelectronics's margin expand, with revenue decling at -6.56% on average, which was quicker than the average fall in net income of -1.63%, which suggests that earnings has represented a larger percentage of the top line due to the faster fall in revenue. … Using STMicroelectronics's margin expectations as a way to understand projections for the future Margins are expected to shift towards expansion, with an expectation of 8.68% in annual revenue growth and a forecasted 23.16% in annual net income growth.

Simply Wall St -

Is STMicroelectronics NV's (STM) Liquidity As Good As Its Solvency?

How does STM’s operating cash flow stack up against its debt? … NYSE:STM Historical Debt Oct 27th 17 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … STM’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

STM Company Info

Description

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.

Details
Name: STMicroelectronics N.V.
STM
Exchange: NYSE
Founded: 1987
€15,106,140,877
890,637,091
Website: http://www.st.com
Address: STMicroelectronics N.V.
39 Chemin du Champ des Filles,
Plan-Les-Ouates,
Geneva,
Geneva, 1228,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTPA STM Common Stock Euronext Paris FR EUR 08. Dec 1994
OTCPK STME.F Common Stock Pink Sheets LLC US USD 08. Dec 1994
DB SGM Common Stock Deutsche Boerse AG DE EUR 08. Dec 1994
LSE 0INB Common Stock London Stock Exchange GB EUR 08. Dec 1994
BIT STM Common Stock Borsa Italiana IT EUR 08. Dec 1994
WBAG STMI Common Stock Wiener Boerse AG AT EUR 08. Dec 1994
BATS-CHIXE STMP Common Stock BATS 'Chi-X Europe' GB EUR 08. Dec 1994
BATS-CHIXE STMM Common Stock BATS 'Chi-X Europe' GB EUR 08. Dec 1994
NYSE STM NY SHS-EACH REPR 1 ORD EUR1.04 New York Stock Exchange US USD 08. Dec 1994
DB SGMR NY SHS-EACH REPR 1 ORD EUR1.04 Deutsche Boerse AG DE EUR 08. Dec 1994
DUSE SGMR NY SHS-EACH REPR 1 ORD EUR1.04 Dusseldorf Stock Exchange DE EUR 08. Dec 1994
LSE 0L9Y NY SHS-EACH REPR 1 ORD EUR1.04 London Stock Exchange GB USD 08. Dec 1994
BMV STM N NY SHS-EACH REPR 1 ORD EUR1.04 Bolsa Mexicana de Valores MX MXN 08. Dec 1994
Number of employees
Current staff
Staff numbers
45,953
STMicroelectronics employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:45
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/19
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.