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STMicroelectronics NV (FR:STMPA)
:STMPA

STMicroelectronics NV (STMPA) AI Stock Analysis

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STMicroelectronics NV

(LSE:STMPA)

Rating:71Outperform
Price Target:
€28.00
▲(1.01%Upside)
The overall stock score of 71 is driven by strong financial performance, particularly in profitability and balance sheet strength. Technical analysis indicates a positive trend, though potential volatility and overbought conditions are concerns. The valuation suggests moderate attractiveness, with limited income potential from dividends.
Positive Factors
Microcontroller Market
STMicroelectronics is on Positive Catalyst Watch due to short-term positivity in the microcontroller market.
Order Improvement
There are signs of improvement in China orders for microcontrollers, indicating an easing of inventory issues.
Revenue Outlook
Revenue and EBIT estimates for the company have been significantly raised, reflecting a more optimistic outlook.
Negative Factors
Gross Margin and Capacity Charges
Margin pressures continue due to higher unused capacity charges impacting the company's profitability.
Inventory and Guidance Issues
Inventories increased 8% Q/Q, which is a negative.
Tariff and Demand Uncertainty
The company faces ongoing uncertainty related to tariffs and potential fading of current order demand in the future.

STMicroelectronics NV (STMPA) vs. iShares MSCI France ETF (EWQ)

STMicroelectronics NV Business Overview & Revenue Model

Company DescriptionSTMicroelectronics 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 Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; radio frequency (RF) and electrically erasable programmable read-only memories; and RF, digital, and mixed-signal ASICs. It also provides assembly and other services. The company sells its products through distributors and retailers, as well as through sales representatives. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.
How the Company Makes MoneySTMicroelectronics generates revenue primarily through the sale of its semiconductor products and solutions. The company serves multiple industries, with key revenue streams coming from sectors such as automotive, industrial, personal electronics, and communications. STMicroelectronics capitalizes on its broad product portfolio to cater to the growing demand in these markets. Additionally, the company has established significant partnerships and collaborations with other technology firms to enhance its product offerings and market reach. Factors contributing to its earnings include advancements in technology, ongoing innovation, and the increasing integration of electronics in various industries.

STMicroelectronics NV Financial Statement Overview

Summary
STMicroelectronics NV shows strong profitability and a robust balance sheet with low leverage and high equity. Challenges in revenue growth are noted, but operational efficiency and cash generation are commendable. The transition to positive free cash flow is a strength, though improvement in converting earnings to free cash flow is needed.
Income Statement
75
Positive
The company shows strong profitability with a consistent gross profit margin and a healthy net profit margin. Revenue growth has slowed in recent periods, indicating a potential plateau. EBIT and EBITDA margins remain robust, reflecting operational efficiency.
Balance Sheet
80
Positive
STMicroelectronics NV maintains a solid equity position with a favorable equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting manageable leverage. Return on equity demonstrates strong profitability in relation to shareholder equity.
Cash Flow
70
Positive
Operating cash flow is strong, but free cash flow has shown volatility due to high capital expenditures. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.32B13.27B17.29B16.13B12.76B10.22B
Gross Profit4.62B5.22B8.29B7.33B5.05B3.40B
EBITDA2.47B3.72B6.38B5.71B3.47B2.27B
Net Income1.10B1.56B3.98B3.96B2.00B694.00M
Balance Sheet
Total Assets24.92B24.74B24.45B20.99B16.41B15.31B
Cash, Cash Equivalents and Short-Term Investments5.96B6.18B6.08B4.59B3.52B3.85B
Total Debt2.88B3.17B3.17B2.57B2.53B2.62B
Total Liabilities6.96B7.06B7.60B7.48B6.83B7.00B
Stockholders Equity17.73B17.45B16.73B13.44B9.52B8.25B
Cash Flow
Free Cash Flow235.00M-216.00M1.46B1.60B1.19B804.00M
Operating Cash Flow2.46B2.96B5.99B5.58B3.46B2.46B
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-1.37B279.00M

STMicroelectronics NV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.72
Price Trends
50DMA
23.09
Positive
100DMA
21.95
Positive
200DMA
22.73
Positive
Market Momentum
MACD
1.14
Negative
RSI
69.82
Neutral
STOCH
93.36
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 27.72 is above the 20-day moving average (MA) of 25.49, above the 50-day MA of 23.09, and above the 200-day MA of 22.73, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 69.82 is Neutral, neither overbought nor oversold. The STOCH value of 93.36 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€24.46B25.086.33%1.13%-24.67%-69.86%
69
Neutral
¥229.66B14.257.50%2.73%9.14%8.34%
€41.95B34.9813.67%0.83%
€1.67B18.735.91%
€51.05B49.2514.05%1.15%
DEXFB
€849.11M18.145.01%
DE7U7
€1.60B137.346.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:STMPA
STMicroelectronics NV
27.72
-9.54
-25.60%
GB:0HB4
Dassault Systemes
31.55
-2.03
-6.05%
GB:0RMT
Soitec SA
48.23
-66.38
-57.92%
GB:0IW5
Thales
246.20
96.54
64.51%
DE:XFB
X-Fab Silicon Foundries SE
6.50
0.08
1.25%
DE:7U7
OVH Groupe SAS
10.52
4.95
88.87%
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.Date of analysis: Jun 05, 2025