STMicroelectronics NV (STMMI) AI Stock Analysis

• Market Cap: €18.54B
• Dividend Yield: 1.55%
• Average Volume (3M): 3.51M
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.20
• Revenue Growth: -18.77%
• EPS Growth: -76.73%
• Country: IT
• Employees: 49,602
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.22
• Shares Outstanding: 911,281,900
• 10 Day Avg. Volume: 3,914,153
• 30 Day Avg. Volume: 3,511,372
• 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: 24.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €22.50 ▲(9.01% Upside)

STMicroelectronics NV's overall stock score reflects significant challenges in financial performance, particularly in revenue growth and cash flow management. Technical analysis indicates mixed signals with potential downward pressure. The stock appears overvalued with a high P/E ratio and low dividend yield, limiting its attractiveness to investors.

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 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 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: Negative
• Last Price: 20.64
• 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 IT:STMMI, the sentiment is Negative. The current price of 20.64 is below the 20-day moving average (MA) of 22.43, below the 50-day MA of 23.14, and below the 200-day MA of 22.89, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:STMMI.

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%	1.54%	11.16%	-50.57%
SOI	72 Outperform	€1.38B	15.00	5.91%	―	-8.90%	-48.52%
DSY	68 Neutral	€32.15B	27.00	14.37%	1.09%	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%
OVH	55 Neutral	€1.23B	3,138.46	0.19%	―	9.22%	―
STMMI	54 Neutral	€18.54B	39.68	3.17%	1.55%	-18.77%	-76.73%