STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €20.69B
• Dividend Yield: 1.45%
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.55
• Revenue Growth: -24.66%
• EPS Growth: -69.86%
• Country: FR
• Employees: 49,602
• Sector: Technology
• Sector Strength: 76
• Industry: Semiconductors
• EPS (TTM): 0.06
• Shares Outstanding: 902,771,060
• 10 Day Avg. Volume: 2,397,079
• 30 Day Avg. Volume: 2,956,007
• PEG Ratio: -0.67
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 86.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €24.51
• Price Target Upside: 6.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

STMicroelectronics NV demonstrates strong financial health and operational efficiency with robust profitability metrics and a solid balance sheet. Despite challenges in revenue growth, the company has shown improvement in cash flow. The technical analysis suggests moderate upward momentum, though some caution is advised due to potential overbought conditions. Valuation metrics indicate the stock is reasonably priced, though the dividend yield is moderate. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Market Expansion

STM expects to regain over 20% market share in microcontrollers, with strong design wins across China, EMEA, and the US.

Product Innovation

STM's recently launched STM32N6 MCU targeted at edge AI applications is already seeing strong demand, becoming its fastest MCU to reach sales of $100m.

Negative Factors

Customer Loss

Loss of a major customer, with Apple accounting for a significant portion of net revenue in recent years, poses a risk.

Revenue Decline

Revenue declined 27.3% to USD 2.52bn due to softness in automotive, industrial, and personal electronics end markets.

STMicroelectronics NV Business Overview & Revenue Model

Company Description

STMicroelectronics NV (STMPA) is a global semiconductor company that designs, develops, manufactures, and markets a wide range of semiconductor products used in a variety of microelectronic applications. The company operates in multiple sectors, including automotive, industrial, personal electronics, and communications. Its core products include microcontrollers, sensors, power management devices, and analog ICs, which serve a broad spectrum of industries and applications.

How the Company Makes Money

STMicroelectronics makes money primarily through the sale of its semiconductor products. The company's revenue model is built around designing and manufacturing integrated circuits that are embedded into various electronic devices and systems across different industries. Key revenue streams include sales of microcontrollers, which are used in automotive and industrial applications, as well as power and analog ICs that are critical components in personal electronics and telecommunications. STMicroelectronics also benefits from strategic partnerships and collaborations with major technology companies, which enhance its market reach and product offerings. Additionally, the company invests in research and development to innovate and improve its product portfolio, thereby maintaining its competitive edge in the semiconductor market.

STMicroelectronics NV Financial Statement Overview

Summary

STMicroelectronics NV presents a financially stable picture with strong profitability and an impressive balance sheet characterized by low leverage and high equity. Although the company faces challenges in revenue growth, its operational efficiency and cash generation are commendable. The positive shift in free cash flow is a notable strength, though the company should focus on converting more of its earnings into free cash flow to support sustainable growth.

Income Statement

The income statement shows strong profitability with a healthy gross profit margin of 37.48% and a net profit margin of 8.94% for TTM (Trailing-Twelve-Months). However, revenue has decreased by 7.14% compared to the previous annual period, indicating potential challenges in maintaining growth. The EBIT margin stands at 9.15%, and the EBITDA margin is at 20.04%, both indicating solid operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.16 and a strong equity ratio of 71.12%, reflecting a solid capital structure. Return on equity (ROE) is a commendable 6.21% for TTM, showing efficient use of equity. The company's financial stability is underscored by a substantial equity base relative to its assets, which minimizes risk exposure from leverage.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow, shifting from a negative position to positive TTM growth. The operating cash flow to net income ratio is 2.24, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio of 0.21 suggests that only a modest portion of net income is translating into free cash flow, which could impact future investments and growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.32B	13.27B	17.29B	16.13B	12.76B	10.22B
	Gross Profit
4.62B	5.22B	8.29B	7.33B	5.05B	3.40B
	EBIT
1.13B	1.68B	4.61B	4.53B	2.45B	1.23B
	EBITDA
2.47B	3.72B	6.38B	5.71B	3.47B	2.27B
	Net Income Common Stockholders
1.10B	1.56B	3.98B	3.96B	2.00B	694.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.24B	6.18B	6.08B	4.59B	3.52B	3.85B
	Total Assets
24.97B	24.74B	24.45B	20.99B	16.41B	15.31B
	Total Debt
3.11B	3.17B	3.17B	2.57B	2.53B	2.62B
	Net Debt
-20.00M	885.00M	-49.00M	-686.00M	-691.00M	-389.00M
	Total Liabilities
7.77B	7.06B	7.60B	7.48B	6.83B	7.00B
	Stockholders Equity
17.07B	17.45B	16.73B	13.44B	9.52B	8.25B
Cash Flow		Free Cash Flow
235.00M	-216.00M	1.46B	1.60B	1.19B	804.00M
	Operating Cash Flow
2.46B	2.96B	5.99B	5.58B	3.46B	2.46B
	Investing Cash Flow
-3.10B	-3.74B	-5.77B	-4.98B	-1.86B	-2.34B
	Financing Cash Flow
-713.00M	-155.00M	-267.00M	-556.00M	-1.37B	279.00M

STMicroelectronics NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:STMPA, the sentiment is Positive. The current price of 23.06 is above the 20-day moving average (MA) of 20.63, above the 50-day MA of 20.71, and below the 200-day MA of 23.85, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 92.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:STMPA.

STMicroelectronics NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUB	76 Outperform	€23.84B	14.35	15.92%	3.57%	8.30%	26.51%
SGO	74 Outperform	€50.03B	17.80	11.75%	2.07%	-2.86%	8.16%
STMPA	70 Outperform	€20.69B	21.20	6.33%	1.45%	-24.66%	-69.86%
CAP	70 Outperform	€25.75B	15.34	15.03%	2.25%	-1.89%	1.15%
SOP	66 Neutral	€3.89B	15.40	16.26%	2.43%	-0.49%	39.02%
SOI	65 Neutral	€1.98B	17.57	7.72%	―	-10.32%	-48.42%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%