STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €19.23B
• Dividend Yield: 1.48%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.45
• Revenue Growth: -24.67%
• EPS Growth: -69.86%
• Country: FR
• Employees: 49,602
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.22
• 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: €25.64
• Price Target Upside: 17.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: €28.00 ▲(28.68% 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

Strong Market Position

STMicroelectronics' leadership in the semiconductor industry, with a diverse product range across key sectors, supports its long-term market position and growth potential.

Automotive Sector Growth

The company's strong foothold in the automotive sector, driven by trends like EVs and ADAS, positions it well for sustained revenue growth in this expanding market.

Robust Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling STMicroelectronics to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Declining Revenue Growth

The decline in revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market competitiveness.

Profitability Challenges

Decreasing profit margins suggest rising cost pressures and reduced profitability, which may affect the company's ability to reinvest in innovation and growth.

Cash Flow Management Issues

Deteriorating cash flow management could constrain STMicroelectronics' ability to fund operations and strategic initiatives, impacting long-term financial health.

STMicroelectronics NV Business Overview & Revenue Model

Company Description

STMicroelectronics NV (STMMI) is a global semiconductor leader that designs, develops, manufactures, and markets a wide range of semiconductor products. The company operates across several sectors, including automotive, industrial, personal electronics, and communication equipment. Its core products include microcontrollers, sensors, power management devices, and integrated circuits, which are essential components in various applications, from consumer electronics to smart mobility solutions.

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. While revenue growth has slowed, operational efficiency remains high. Cash flow management is adequate but could be improved by optimizing capital expenditures.

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	11.86B	13.27B	17.29B	16.13B	12.76B	10.22B
Gross Profit	4.25B	5.22B	8.29B	7.63B	5.33B	3.40B
EBITDA	2.54B	3.72B	6.38B	5.71B	3.47B	2.27B
Net Income	651.00M	1.56B	3.98B	3.96B	2.00B	1.11B
Balance Sheet
Total Assets	25.46B	24.74B	24.45B	20.99B	16.41B	15.31B
Cash, Cash Equivalents and Short-Term Investments	5.63B	6.18B	6.08B	4.52B	3.52B	3.72B
Total Debt	2.96B	3.17B	3.17B	2.82B	2.74B	2.82B
Total Liabilities	7.48B	7.06B	7.60B	7.48B	6.83B	7.00B
Stockholders Equity	17.75B	17.45B	16.73B	13.44B	9.52B	8.45B
Cash Flow
Free Cash Flow	-77.00M	-216.00M	1.46B	1.60B	1.19B	804.00M
Operating Cash Flow	2.53B	2.96B	5.99B	5.58B	3.46B	2.46B
Investing Cash Flow	-3.16B	-3.74B	-5.77B	-4.98B	-1.86B	-2.34B
Financing Cash Flow	-853.00M	-155.00M	-267.00M	-556.00M	-1.31B	348.00M

STMicroelectronics NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 21.76 is below the 20-day moving average (MA) of 24.47, below the 50-day MA of 23.57, and below the 200-day MA of 23.06, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 22.21 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
HO	―	€50.43B	73.80	14.51%	1.47%	11.16%	-50.57%
STMPA	―	€19.23B	41.16	3.92%	1.48%	-24.67%	-69.86%
SOI	―	€1.35B	14.71	5.91%	―	-8.90%	-48.52%
DSY	―	€34.36B	28.85	14.37%	1.01%	3.38%	4.62%
XFAB	―	€849.11M	30.30	3.08%	―	-9.34%	-75.43%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OVH	―	€1.24B	3,169.23	0.19%	―	9.22%	―