Stmicroelectronics N.V. (STM)
NYSE:STM
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STMicroelectronics
(NYSE:STM)
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Rating:62Neutral
Price Target:
$83.00
▲(87.70% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by mixed fundamentals: a resilient, low-leverage balance sheet offsets materially compressed margins and inconsistent free cash flow. Technicals are constructive with a strong trend, but overbought signals raise near-term risk. Valuation is a notable headwind due to an extremely high P/E and low yield, while the latest earnings call supports the outlook with strong revenue momentum but highlights ongoing near-term margin and cash-flow pressures.
Positive Factors
Conservative balance sheet / low leverage
Low leverage and a sizable equity base provide durable financial flexibility through semiconductor cycles. This supports investment in capacity, M&A (e.g., NXP MEMS), and shareholder returns while reducing refinancing risk during downturns, preserving long-term strategic optionality.
Negative Factors
Material margin compression
Sustained margin erosion materially weakens returns on capital and limits free cash flow generation. If pricing/mix or higher costs persist, the company will face constrained reinvestment capacity and lower resilience to cyclical downturns despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Low leverage and a sizable equity base provide durable financial flexibility through semiconductor cycles. This supports investment in capacity, M&A (e.g., NXP MEMS), and shareholder returns while reducing refinancing risk during downturns, preserving long-term strategic optionality.
Read all positive factors
STMicroelectronics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Data provided by:
The Fly
The FlySTMicroelectronics (STM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.99B
Dividend Yield1.28%
Average Volume (3M)12.44M
Price to Earnings (P/E)466.1
Beta (1Y)1.59
Revenue Growth0.79%
EPS Growth-86.68%
CountryUS
Employees49,602
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.16
Shares Outstanding911,281,900
10 Day Avg. Volume11,465,643
30 Day Avg. Volume12,441,497
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.27
Price to Sales (P/S)1.91
P/FCF Ratio-435.83
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue4.98
Enterprise Value/Gross Profit14.72
Enterprise Value/Ebitda26.61
Forecast
1Y Price Target
$73.29Price Target Upside65.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.25
Revenue Forecast (FY)$14.18B
STMicroelectronics Business Overview & Revenue Model
Company Description
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete...
How the Company Makes Money
STMicroelectronics primarily makes money by selling semiconductor products to customers that integrate these components into end products such as vehicles, factory automation equipment, power systems, consumer and personal electronics, and communi...
STMicroelectronics Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive commercial momentum with strong year‑over‑year growth across multiple segments, robust bookings, strategic wins (AWS engagement, photonics PIC100, NXP MEMS acquisition) and an upgraded 2026 top‑line outlook. However, near‑term profitability and cash generation are affected by restructuring charges, acquisition cash outflow, temporary manufacturing inefficiencies and higher OpEx to accelerate new opportunities. Management expects margins and operational benefits to improve sequentially through 2026 with more substantial benefits materializing in late 2027 and 2028.Positive Updates
Quarterly Revenue and Guidance
Q1 net revenues $3.1B (includes ~$40M from NXP MEMS). Q2 guidance $3.45B ±350bps (midpoint +11.6% sequential, +24.9% YoY). Company expects full-year 2026 revenues to show double-digit growth.
Negative Updates
Sequential Softness in Several Segments
On a sequential basis Q1 declines: Automotive -10%, Personal Electronics -14%, Analog/MEMS & Sensors -9.1%, Power & Discrete -5.4%, Embedded Processing -4%, RF & Optical -9%. Several key segments showed quarter-on-quarter softness.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue and Guidance
Q1 net revenues $3.1B (includes ~$40M from NXP MEMS). Q2 guidance $3.45B ±350bps (midpoint +11.6% sequential, +24.9% YoY). Company expects full-year 2026 revenues to show double-digit growth.
Read all positive updates
Company Guidance
ST guided Q2 revenues of $3.45 billion (±350 basis points), which at the midpoint implies +11.6% sequential and +24.9% year‑over‑year growth, and said revenues should be well above average seasonality; Q2 gross margin is expected to be about 34.8% (±200 bps) including roughly 100 bps of unused‑capacity charges (non‑U.S. GAAP gross margin ~35.2%), while Q2 non‑U.S. GAAP net OpEx is guided to $950–$960 million (higher sequentially due to calendar effects, start‑up costs and one extra month of NXP MEMS OpEx). For full‑year 2026, like‑for‑like net OpEx is expected up mid‑to‑high single digits y/y (low‑double‑digit up including the NXP acquisition and FX, with ~ $50M of added NXP OpEx and an FX assumption around $/€1.15–1.16); the company reiterated data‑center revenues “nicely above” $500M in 2026 and well above $1B in 2027, reaffirmed a path to sequential gross‑margin improvement (despite ~50 bps of nonrecurring reshaping costs persisting this year) and the longer‑term target of >40% gross margin when quarterly revenues exceed ~$4B.STMicroelectronics Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.40B | 11.84B | 13.27B | 17.29B | 16.13B | 12.76B |
| Gross Profit | 4.20B | 4.01B | 5.22B | 8.29B | 7.63B | 5.33B |
| EBITDA | 2.32B | 401.24M | 3.72B | 6.38B | 5.71B | 3.42B |
| Net Income | 144.73M | 166.51M | 1.56B | 4.21B | 3.96B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 25.13B | 24.80B | 24.74B | 24.45B | 19.98B | 15.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.57B | 4.92B | 6.18B | 6.08B | 4.52B | 3.52B |
| Total Debt | 2.57B | 2.13B | 3.17B | 3.17B | 2.91B | 2.74B |
| Total Liabilities | 6.96B | 6.58B | 7.06B | 7.60B | 7.22B | 6.27B |
| Stockholders Equity | 17.77B | 17.83B | 17.45B | 16.73B | 12.69B | 9.21B |
Cash Flow | ||||||
| Free Cash Flow | 160.60M | -52.00M | -216.00M | 1.46B | 1.57B | 1.12B |
| Operating Cash Flow | 2.12B | 2.15B | 2.96B | 5.99B | 5.20B | 3.06B |
| Investing Cash Flow | -970.36M | -43.00M | -3.74B | -5.77B | -4.59B | -1.52B |
| Financing Cash Flow | -1.04B | -1.56B | -155.00M | -267.00M | -567.00M | -1.31B |
STMicroelectronics Technical Analysis
Positive
44.22
Price Trends
52.45
Positive
41.93
Positive
34.02
Positive
Market Momentum
6.89
Negative
77.23
Negative
88.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Positive. The current price of 44.22 is below the 20-day moving average (MA) of 66.29, below the 50-day MA of 52.45, and above the 200-day MA of 34.02, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 77.23 is Negative, neither overbought nor oversold. The STOCH value of 88.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STM.
STMicroelectronics Risk Analysis
STMicroelectronics disclosed 35 risk factors in its most recent earnings report. STMicroelectronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
STMicroelectronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $29.78B | 162.52 | 13.19% | ― | 27.05% | ― | |
72 Outperform | $52.49B | 90.55 | 7.45% | ― | -9.04% | -4.21% | |
71 Outperform | $52.11B | 31.16 | 13.50% | 6.06% | 7.52% | 17.94% | |
69 Neutral | $47.85B | 60.42 | 6.66% | ― | 0.80% | ― | |
62 Neutral | $70.99B | 466.11 | 0.86% | 1.28% | 0.79% | -86.68% | |
62 Neutral | $86.10B | 54.88 | 14.45% | 2.29% | 15.55% | 43.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
STM
STMicroelectronics
78.36
50.21
178.38%
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84.70
46.97
124.49%
STMicroelectronics Corporate Events
STMicroelectronics Lifts 2026 Data Center Revenue Target on Surging AI Demand
Jun 2, 2026
On June 2, 2026, STMicroelectronics raised its revenue ambition for data center products, citing continued strong demand for AI infrastructure and progress in ramping up production capacity. The company now expects about $1 billion in data center ...
STMicroelectronics Shareholders Approve All Resolutions and $0.36 Dividend at 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics held its Annual General Meeting of Shareholders in Amsterdam, where investors approved all resolutions on the agenda. The AGM validated the 2025 statutory accounts under IFRS, confirmed board governance items in...
STMicroelectronics Names New Chairman and Vice-Chairman After 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics’ Supervisory Board acted following the company’s Annual General Meeting of Shareholders in Amsterdam, appointing Armando Varricchio as Chairman and Nicolas Dufourcq as Vice-Chairman for a three-year ...
STMicroelectronics Posts Strong Year-on-Year Q1 2026 Revenue Growth Despite Sequential Dip
May 4, 2026
STMicroelectronics reported first-quarter 2026 results on May 4, 2026, filing a Form 6-K that includes its operating and financial review, unaudited interim consolidated financial statements, and Sarbanes-Oxley certifications. For the three months...
STMicroelectronics Posts Strong Q1 2026 Growth and Signals AI-Driven Datacenter Upside
Apr 23, 2026
On April 23, 2026, STMicroelectronics reported first-quarter 2026 net revenues of $3.10 billion, up 23% year-on-year, including about $40 million from the recently acquired NXP MEMS sensor business, with gross margin at 33.8% and operating income ...
STMicroelectronics Sets 2026 AGM Agenda with Dividend Plan and Capital Authority Renewals
Mar 27, 2026
STMicroelectronics announced on March 26, 2026, the set of resolutions it will submit to shareholders at its Annual General Meeting in Amsterdam on May 27, 2026, including adoption of its IFRS statutory accounts for 2025, which were filed the same...
STMicroelectronics Files 2025 Dutch Statutory Annual Report with U.S. SEC
Mar 26, 2026
STMicroelectronics has filed a Form 6-K for March 2026 with the U.S. Securities and Exchange Commission, furnishing its 2025 Dutch statutory annual report and IFRS statutory accounts. The extensive document details the group’s organizational...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.