STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €25.14B
• Dividend Yield: 1.4%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 172.5
• Beta (1Y): 1.49
• Revenue Growth: -24.67%
• EPS Growth: -69.86%
• Country: FR
• Employees: 49,602
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.09
• Shares Outstanding: 911,281,900
• 10 Day Avg. Volume: 2,061,836
• 30 Day Avg. Volume: 2,176,139
• PEG Ratio: -1.51
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 540.48
• 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: €27.72
• Price Target Upside: -1.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): €11.18B

• Rating: 71 Outperform
• Price Target: €28.00 ▼(-0.60% Downside)
• Action: Reiterated Date: 06/05/25
• Date: Action: Reiterated 06/05/25

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

Conservative balance sheet

ST’s low leverage (debt-to-equity ~0.12) and sizeable equity base provide durable financial flexibility through semiconductor cycles. This strengthens the company’s ability to fund R&D, capex, M&A and working capital without stress, supporting long-term investment and strategic optionality.

Strategic hyperscale partnership

A multi-year, multi‑billion USD commercial engagement with AWS represents a structural revenue channel and technology validation. Long-term hyperscaler demand for efficient mixed-signal, microcontrollers and power ICs can create stable volume, higher product stickiness, and accelerated roadmap prioritization.

Sensors portfolio expansion via acquisition

Closing the NXP MEMS sensors deal materially broadens ST’s sensors footprint in automotive and industrial markets. The acquisition accelerates product breadth, scale and cross-sell opportunities in high-growth sensing end-markets, reinforcing structural competitive positioning over coming years.

Negative Factors

Sharply compressed profitability

Margins collapsing from mid‑20s to ~1% signals deep operational and pricing stress. Sustained margin recovery is required to rebuild internal cash, ROE and investment capacity; if pricing, cost structure or utilization issues persist, durable profitability could remain impaired.

Weak free cash flow

Near‑breakeven FCF and prior negative FCF reduce internal funding for capex, R&D, dividends or integration costs. Reliance on the balance sheet to fund growth or M&A elevates execution risk and could constrain strategic initiatives if cash conversion does not improve sustainably.

Revenue and earnings decline

Sharp topline and EPS declines reflect end‑market cyclicality and demand weakness. Persistent revenue volatility limits operating leverage and makes multi-year planning harder; until multi-segment demand normalizes, growth recovery may be slow and margins pressured.

STMicroelectronics NV 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 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 Money

STMicroelectronics primarily generates revenue through the sale of semiconductor products across various industries. Its key revenue streams include automotive semiconductors, which are crucial for electric vehicles and advanced driver-assistance systems; industrial applications, providing solutions for automation and energy efficiency; and personal electronics, offering components for smartphones and tablets. The company has established significant partnerships with major technology firms and automotive manufacturers, which not only enhance its market presence but also drive collaborative innovation. Additionally, STMicroelectronics benefits from long-term contracts and strategic alliances that provide stability in revenue, as well as from the growing demand for IoT solutions and smart devices, contributing to its overall earnings.

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

STMicroelectronics NV has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit and net profit margins have also decreased compared to previous years, indicating pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio indicating conservative leverage. Return on equity has decreased in the TTM period but remains positive, reflecting some profitability. The equity ratio is stable, showing a solid capital structure.

Cash Flow

Cash flow metrics show a concerning trend with a significant decline in free cash flow growth and a negative free cash flow to net income ratio in the TTM period. Operating cash flow remains positive but has decreased, indicating potential liquidity challenges.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.28B	13.27B	17.29B	16.13B	12.76B
Gross Profit	4.16B	5.22B	8.29B	7.63B	5.33B
EBITDA	416.31M	3.72B	6.38B	5.71B	3.47B
Net Income	172.77M	1.56B	4.21B	3.96B	2.00B
Balance Sheet
Total Assets	24.80B	24.74B	24.45B	20.99B	16.41B
Cash, Cash Equivalents and Short-Term Investments	4.92B	6.18B	6.08B	4.52B	3.52B
Total Debt	2.13B	3.17B	3.17B	2.82B	2.74B
Total Liabilities	6.58B	7.06B	7.60B	7.48B	6.83B
Stockholders Equity	17.83B	17.45B	16.73B	13.44B	9.52B
Cash Flow
Free Cash Flow	42.67M	-216.00M	1.46B	1.60B	1.22B
Operating Cash Flow	2.24B	2.96B	5.99B	5.58B	3.06B
Investing Cash Flow	117.61M	-3.74B	-5.77B	-4.98B	-1.52B
Financing Cash Flow	-1.79B	-155.00M	-267.00M	-556.00M	-1.31B

STMicroelectronics NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.17 is above the 20-day moving average (MA) of 27.34, above the 50-day MA of 25.09, and above the 200-day MA of 23.66, indicating a bullish trend. The MACD of 1.16 indicates Positive momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 63.92 is Neutral, 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
HO	73 Outperform	€52.59B	76.65	14.51%	1.66%	11.16%	-50.57%
STMPA	71 Outperform	€25.14B	172.50	3.92%	1.40%	-24.67%	-69.86%
SOI	65 Neutral	€1.54B	135.75	0.73%	―	-14.27%	-89.94%
DSY	62 Neutral	€24.70B	20.43	14.37%	1.10%	3.38%	4.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OVH	55 Neutral	€1.39B	-1,773.08	0.19%	―	9.22%	90.39%
XFAB	50 Neutral	€613.71M	22.79	2.04%	―	-5.30%	-81.29%