OTCPK:STME.F

Stock Analysis Report

Executive Summary

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products in EMEA, the Americas, and the Asia Pacific.


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: STME.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

STME.F

3.5%

US Semiconductor

5.3%

US Market


1 Year Return

31.5%

STME.F

3.6%

US Semiconductor

-10.7%

US Market

Return vs Industry: STME.F exceeded the US Semiconductor industry which returned 3.6% over the past year.

Return vs Market: STME.F exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

STME.FIndustryMarket
7 Day7.5%3.5%5.3%
30 Day-21.9%-11.4%-13.6%
90 Day-23.5%-16.2%-19.8%
1 Year31.5%31.5%5.6%3.6%-8.9%-10.7%
3 Year40.0%38.3%51.2%42.8%15.5%8.0%
5 Year142.5%125.6%108.8%88.7%35.2%20.4%

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

No news available

Valuation

Is STMicroelectronics undervalued compared to its fair value and its price relative to the market?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STME.F ($21.3) is trading below our estimate of fair value ($37.74)

Significantly Below Fair Value: STME.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STME.F is poor value based on its PE Ratio (50.5x) compared to the Semiconductor industry average (26.7x).

PE vs Market: STME.F is poor value based on its PE Ratio (50.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: STME.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: STME.F is overvalued based on its PB Ratio (2.7x) compared to the US Semiconductor industry average (2.3x).


Next Steps

Future Growth

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

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STME.F's forecast earnings growth (28.4% per year) is above the savings rate (1.7%).

Earnings vs Market: STME.F's earnings (28.4% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: STME.F's revenue (7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: STME.F's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STME.F's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has STMicroelectronics performed over the past 5 years?

46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STME.F has a large one-off loss of $143.0M impacting its December 31 2019 financial results.

Growing Profit Margin: STME.F's current net profit margins (4%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: STME.F's earnings have grown significantly by 46.1% per year over the past 5 years.

Accelerating Growth: STME.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STME.F had negative earnings growth (-76.2%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: STME.F's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is STMicroelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: STME.F's short term assets ($6.3B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: STME.F's short term assets ($6.3B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: STME.F's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: STME.F's debt to equity ratio has reduced from 35.6% to 28.9% over the past 5 years.

Debt Coverage: STME.F's debt is well covered by operating cash flow (106.2%).

Interest Coverage: STME.F's interest payments on its debt are well covered by EBIT (22.5x coverage).


Balance Sheet

Inventory Level: STME.F has a high level of physical assets or inventory.

Debt Coverage by Assets: STME.F's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STME.F's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: STME.F's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: STME.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), STME.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STME.F's dividends in 3 years are forecast to be well covered by earnings (15.1% payout ratio).


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)

1.83s

Tenure

US$4,462,933

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 ($USD4.46M) is below average for companies of similar size in the US market ($USD11.77M).

Compensation vs Earnings: Jean-Marc's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Marc Chery
President1.83yrsUS$4.46m0.025% $4.9m
Lorenzo Grandi
President of Finance1.83yrsno datano data
Orio Bellezza
President of Technology2.67yrsno datano data
Celine Berthier
Group Vice President of Investor Relations1.42yrsno datano data
Philippe Dereeper
Chief Compliance Officer & Executive Secretary for Supervisory Boardno datano datano data
Steven Rose
President of Legal Counsel6.58yrsno datano data
Marco Cassis
President of Sales1.83yrsno datano data
Claude Dardanne
President of Microcontrollers & Digital ICs Group4.17yrsno datano data
Thierry Tingaud
Executive Vice President of Europe & France Public Affairs1.67yrsno datano data
Fabio Gualandris
Executive VP and Head of Back-End Manufacturing & Technology9.08yrsno datano data

1.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: STME.F's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pasquale Pistorio
Honorary Chairman15yrsUS$6.38mno data
Nicolas Dufourcq
Independent Chairman of Supervisory Board2.75yrsno datano data
Janet Davidson
Independent Member of Supervisory Board6.75yrsUS$106.00kno data
Frédéric Sanchez
Independent Member of Supervisory Board2.75yrsUS$108.00kno data
Martine Verluyten
Independent Member of Supervisory Board7.83yrsUS$151.50kno data
Jean-Georges Malcor
Independent Member of Supervisory Board8.83yrsUS$99.50kno data
Maurizio Tamagnini
Independent Vice Chairman of Supervisory Board2.75yrsUS$166.00kno data
Lucia Morselli
Independent Member of Supervisory Board0.83yrUS$92.50kno data
Heleen Kersten
Independent Member of Supervisory Board5.75yrsUS$117.00kno data
Alessandro Rivera
Independent Member of Supervisory Board8.83yrsUS$92.00kno data

6.3yrs

Average Tenure

61yo

Average Age

Experienced Board: STME.F's board of directors are considered experienced (6.3 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: STME.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: €17.643b
  • Listing Market Cap: €19.388b
  • Shares outstanding: 887.69m
  • Website: https://www.st.com

Number of Employees


Location

  • STMicroelectronics N.V.
  • 39 Chemin du Champ des Filles
  • 1228 Plan-Les-Ouates
  • Geneva
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STMNYSE (New York Stock Exchange)NY SHS-EACH REPR 1 ORD EUR1.04USUSDDec 1994
STME.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 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
0INBLSE (London Stock Exchange)YesCommon StockGBEURDec 1994
SGMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1994
STMPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 1994
SGMXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 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 in EMEA, the Americas, and the Asia Pacific. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers digital and analog automotive integrated circuits (ICs); and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides custom and general purpose analog ICs; smart power products for industrial, computer, and personal electronics markets; touch screen controllers; wireline and wireless low power connectivity solutions for Internet of Things; power conversion products; metering solutions for smart grid; specialized imaging sensors and modules; and micro-electro-mechanical systems products for sensors or actuators. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers, electrically erasable programmable read-only memories, and digital application-specific integrated circuits; and aerospace and defense products, including components for microwave and millimeter wave. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:22
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.