STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €20.02B
• Dividend Yield: 1.47%
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 1.49
• Revenue Growth: -24.67%
• EPS Growth: -69.86%
• Country: FR
• Employees: 49,602
• Sector: Technology
• Sector Strength: 80
• Industry: Semiconductors
• EPS (TTM): -0.09
• Shares Outstanding: 902,771,060
• 10 Day Avg. Volume: 1,845,113
• 30 Day Avg. Volume: 2,810,651
• PEG Ratio: -0.24
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.69
• P/FCF Ratio: -103.73
• 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: €27.55
• Price Target Upside: 24.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: €28.00 ▲(26.47% 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

Acquisition

STM announced their planned acquisition of NXP’s MEMS sensor business for a purchase price of up to $950mn in cash, expected to close in 1H26.

Earnings

STM's 2Q25 revenue came above company-compiled consensus, as higher revenues in Personal Electronics and Industrial were partially offset by a weaker-than-expected Automotive contribution.

Guidance

The company’s 3Q25 revenue guidance is 4% above company-compiled consensus at the midpoint.

Negative Factors

Automotive Segment

Guidance was below consensus due to impacts related to EVs in the Automotive segment, among other factors.

Cost Structure

Current bloated cost structure remains a headwind to the multiple.

Gross Margins

Unfavourable FX weighed on gross margins, presenting a challenge to profitability.

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 generates revenue primarily through the sale of its semiconductor products, which are sold to a diverse customer base across multiple industries. The company benefits from its strong presence in the automotive sector, particularly with the growing demand for electric vehicles and advanced driver-assistance systems (ADAS). Key revenue streams include the sale of microcontrollers, power management ICs, and sensors. Additionally, STMicroelectronics has established significant partnerships with major technology companies and automakers, which not only enhance its product offerings but also contribute to its revenue through collaborative projects and long-term supply agreements. The company's focus on innovation and development of cutting-edge technologies, such as IoT solutions and power-efficient devices, further strengthens its market position and revenue potential.

STMicroelectronics NV Financial Statement Overview

Summary

STMicroelectronics NV exhibits strong financial health with robust profitability and a stable balance sheet. Revenue growth has slowed, but operational efficiency remains high. Cash flow management is adequate, though optimization of capital expenditures is needed.

Income Statement

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

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

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.

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
EBITDA	2.53B	3.72B	6.38B	5.71B	3.47B	2.27B
Net Income	1.10B	1.56B	3.98B	3.96B	2.00B	694.00M
Balance Sheet
Total Assets	24.92B	24.74B	24.45B	20.99B	16.41B	15.31B
Cash, Cash Equivalents and Short-Term Investments	5.96B	6.18B	6.08B	4.59B	3.52B	3.85B
Total Debt	2.88B	3.17B	3.17B	2.57B	2.53B	2.62B
Total Liabilities	6.96B	7.06B	7.60B	7.48B	6.83B	7.00B
Stockholders Equity	17.73B	17.45B	16.73B	13.44B	9.52B	8.25B
Cash Flow
Free Cash Flow	167.00M	-216.00M	1.46B	1.60B	1.19B	804.00M
Operating Cash Flow	2.68B	2.96B	5.99B	5.58B	3.46B	2.46B
Investing Cash Flow	-3.28B	-3.74B	-5.77B	-4.98B	-1.86B	-2.34B
Financing Cash Flow	-745.00M	-155.00M	-267.00M	-556.00M	-1.37B	279.00M

STMicroelectronics NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 22.14 is above the 20-day moving average (MA) of 22.12, below the 50-day MA of 24.77, and below the 200-day MA of 23.23, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 79.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:STMPA.

STMicroelectronics NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STMPA	71 Outperform	€20.02B	34.70	3.92%	1.47%	-24.67%	-69.86%
Sector *	61 Neutral	$35.38B	6.84	-10.99%	1.97%	8.74%	-8.28%
0HB4	―	€36.19B	31.22	13.92%	―	―	―
0RMT	―	€1.33B	14.62	5.91%	―	―	―
0IW5	―	€49.04B	71.75	14.51%	2.26%	―	―
XFB	―	€946.43M	33.75	3.08%	―	―	―
7U7	―	€1.52B	129.90	6.29%	―	―	―