STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €24.46B
• Dividend Yield: 1.13%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.57
• Revenue Growth: -24.67%
• EPS Growth: -69.86%
• Country: FR
• Employees: 49,602
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.06
• Shares Outstanding: 902,771,060
• 10 Day Avg. Volume: 2,211,561
• 30 Day Avg. Volume: 2,391,133
• PEG Ratio: -0.84
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 108.10
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 5.74
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: €27.01
• Price Target Upside: -2.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 71 Outperform
• 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 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 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

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	2.47B	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	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: 27.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STMPA	71 Outperform	€24.46B	25.08	6.33%	1.13%	-24.67%	-69.86%
Sector *	69 Neutral	¥229.66B	14.25	7.50%	2.73%	9.14%	8.34%
0HB4		€41.95B	34.98	13.67%	0.83%	―	―
0RMT		€1.67B	18.73	5.91%	―	―	―
0IW5		€51.05B	49.25	14.05%	1.15%	―	―
XFB		€849.11M	18.14	5.01%	―	―	―
7U7		€1.60B	137.34	6.29%	―	―	―