STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €21.26B
• Dividend Yield: 1.4%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 139.8
• Beta (1Y): 1.46
• 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: -0.23
• 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: €26.26
• Price Target Upside: 10.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €28.00 ▲(17.45% 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

Diversified end-market exposure

ST’s broad product portfolio across automotive, industrial and personal electronics reduces reliance on any single cyclical demand driver. Durable exposure to EVs, ADAS, IoT and industrial automation supports steadier multi-year revenue opportunities and long-term customer relationships.

Conservative balance sheet

Low leverage and a solid capital structure provide financial flexibility to fund R&D, strategic capex and navigate semiconductor cycles. A healthy balance sheet supports long-term investment in factories and product development without excessive refinancing risk.

Planned strategic capex to reshape operations

A multi-year capex program and manufacturing reshaping can raise structural competitiveness by modernizing fabs, lowering unit costs and enabling advanced nodes. If executed, this should improve long-term product mix, margins and free cash flow generation.

Negative Factors

Declining revenue trend

Significant TTM revenue decline signals demand or share-pressure in key markets. Persistent top-line contraction undermines operating leverage, limits scale benefits on R&D and manufacturing, and forces management to rely on cost actions rather than organic volume recovery.

Weak free cash flow generation

Deteriorating free cash flow reduces the firm’s ability to self-fund capex, dividends or opportunistic investments. Over several quarters this can pressure liquidity, increase dependence on external financing, and limit flexibility to execute strategic programs.

Margin and profitability pressure

Compression of gross and net margins indicates worsening product mix or pricing pressure, eroding returns on invested capital. Sustained margin deterioration weakens ability to invest in advanced nodes and maintain competitive R&D intensity versus peers.

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 faces challenges in revenue growth and profitability, as seen in the declining income statement metrics. The balance sheet remains robust with low leverage, but cash flow issues could pose risks if not addressed. Overall, the company needs to focus on improving revenue and cash flow generation to sustain its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.78B	13.27B	17.29B	16.13B	12.76B	10.22B
Gross Profit	4.07B	5.22B	8.29B	7.63B	5.33B	3.40B
EBITDA	2.51B	3.72B	6.38B	5.71B	3.47B	2.27B
Net Income	535.98M	1.56B	3.98B	3.96B	2.00B	1.11B
Balance Sheet
Total Assets	24.81B	24.74B	24.45B	20.99B	16.41B	15.31B
Cash, Cash Equivalents and Short-Term Investments	4.80B	6.18B	6.08B	4.52B	3.52B	3.72B
Total Debt	2.38B	3.17B	3.17B	3.63B	2.74B	2.82B
Total Liabilities	6.62B	7.06B	7.60B	7.48B	6.83B	7.00B
Stockholders Equity	17.95B	17.45B	16.73B	13.44B	9.52B	8.45B
Cash Flow
Free Cash Flow	51.39M	-216.00M	1.46B	1.60B	1.19B	804.00M
Operating Cash Flow	2.35B	2.96B	5.99B	5.58B	3.46B	2.46B
Investing Cash Flow	-1.73B	-3.74B	-5.77B	-4.98B	-1.52B	-2.34B
Financing Cash Flow	-1.69B	-155.00M	-267.00M	-556.00M	-1.31B	348.00M

STMicroelectronics NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.84
• 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 Neutral. The current price of 23.84 is below the 20-day moving average (MA) of 24.25, above the 50-day MA of 22.45, and above the 200-day MA of 23.02, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€52.61B	76.95	14.51%	1.66%	11.16%	-50.57%
STMPA	71 Outperform	€21.26B	139.76	3.92%	1.40%	-24.67%	-69.86%
DSY	67 Neutral	€31.05B	25.73	14.37%	1.10%	3.38%	4.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOI	56 Neutral	€942.48M	83.07	0.73%	―	-14.27%	-89.94%
OVH	55 Neutral	€1.50B	-1,916.35	0.19%	―	9.22%	90.39%
XFAB	52 Neutral	€669.49M	36.02	2.04%	―	-5.30%	-81.29%