STMicroelectronics NV (STMPA) AI Stock Analysis

• Market Cap: €20.00B
• Dividend Yield: 1.43%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 42.8
• 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: €25.50
• Price Target Upside: 13.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €28.00 ▲(25.17% 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

Renewable Energy Initiative

The long-term renewable energy contract enhances sustainability and reduces operational costs, aligning with global trends towards green energy.

Product Innovation

The new sensor strengthens STMicroelectronics' position in the IoT market, driving long-term growth through innovation in high-demand sectors.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and investment capacity.

Negative Factors

Revenue Decline

Declining revenue growth can hinder long-term profitability and market competitiveness, necessitating strategic adjustments to regain momentum.

Cash Flow Challenges

Deteriorating cash flow metrics may impact liquidity and limit the ability to invest in growth opportunities, posing risks to financial health.

Profit Margin Pressure

Decreasing profit margins indicate operational challenges, potentially affecting long-term profitability and requiring cost management strategies.

STMicroelectronics NV Business Overview & Revenue Model

Company Description

STMicroelectronics NV (STMMI) is a global leader in semiconductor solutions, headquartered in Switzerland. The company operates across various sectors, including automotive, industrial, personal electronics, and communication equipment. STMicroelectronics offers a diverse portfolio of products, including microcontrollers, sensors, power management ICs, and analog devices, catering to a wide range of applications such as IoT, automotive safety, and consumer electronics.

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, with declining margins and negative revenue growth. The balance sheet is strong with low leverage, but declining return on equity indicates reduced profitability. Cash flow management needs improvement, with significant declines in free cash flow.

Income Statement

STMicroelectronics NV's income statement shows a decline in revenue growth with a negative rate of -3.78% TTM, indicating challenges in maintaining sales momentum. The gross profit margin has decreased to 35.83% TTM from 39.34% in the previous year, reflecting increased cost pressures. Net profit margin also declined to 5.49% TTM from 11.73%, suggesting reduced profitability. However, the company maintains a positive EBIT margin of 7.12% TTM, indicating operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet of STMicroelectronics NV remains strong with a low debt-to-equity ratio of 0.17 TTM, indicating prudent financial leverage. The equity ratio stands at 69.71% TTM, showcasing a solid capital structure. However, the return on equity has decreased to 3.69% TTM from 8.92% in the previous year, suggesting a decline in profitability relative to shareholder equity.

Cash Flow

The cash flow statement reveals a concerning trend with a significant decline in free cash flow growth rate of -146.11% TTM, indicating cash flow challenges. The operating cash flow to net income ratio is 0.60 TTM, showing a decrease in cash generation efficiency. The negative free cash flow to net income ratio of -0.03 TTM highlights the need for improved cash management.

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	2.63B	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	3.63B	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: Positive
• Last Price: 22.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 22.37 is above the 20-day moving average (MA) of 20.53, above the 50-day MA of 21.85, and below the 200-day MA of 22.60, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.02 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
HO	73 Outperform	€50.76B	74.28	14.51%	1.64%	11.16%	-50.57%
STMPA	71 Outperform	€20.00B	42.78	3.92%	1.43%	-24.67%	-69.86%
DSY	68 Neutral	€32.15B	27.00	14.37%	1.11%	3.38%	4.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XFAB	57 Neutral	€641.66M	34.52	2.04%	―	-5.30%	-81.29%
SOI	56 Neutral	€1.38B	15.00	0.73%	―	-14.27%	-89.94%
OVH	46 Neutral	€1.23B	3,138.46	0.19%	―	9.22%	90.39%