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STMicroelectronics
(NYSE:STM)
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Rating:62Neutral
Price Target:
$79.00
▲(78.65% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by mixed fundamentals: a resilient, low-leverage balance sheet offsets materially compressed margins and inconsistent free cash flow. Technicals are constructive with a strong trend, but overbought signals raise near-term risk. Valuation is a notable headwind due to an extremely high P/E and low yield, while the latest earnings call supports the outlook with strong revenue momentum but highlights ongoing near-term margin and cash-flow pressures.
Positive Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.12) gives STMicroelectronics durable financial flexibility to fund capex, acquisitions and cyclical downturns without stressing liquidity. This balance-sheet strength supports multi-year investment in fabs and product transitions even if operating cash flow remains uneven.
Negative Factors
Compressed profitability
Margins have materially eroded versus cycle peaks, reflecting tougher pricing/mix, higher OpEx and one-offs. Sustained lower gross and operating margins reduce internal reinvestment capacity, slow return-to-normalized profitability and make long-term returns sensitive to successful fab efficiency and product-mix recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.12) gives STMicroelectronics durable financial flexibility to fund capex, acquisitions and cyclical downturns without stressing liquidity. This balance-sheet strength supports multi-year investment in fabs and product transitions even if operating cash flow remains uneven.
Read all positive factors
STMicroelectronics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Data provided by:
The Fly
The FlySTMicroelectronics (STM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.14B
Dividend Yield1.28%
Average Volume (3M)13.17M
Price to Earnings (P/E)415.8
Beta (1Y)1.58
Revenue Growth0.79%
EPS Growth-86.68%
CountryUS
Employees49,602
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.16
Shares Outstanding911,281,900
10 Day Avg. Volume15,577,933
30 Day Avg. Volume13,173,376
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.27
Price to Sales (P/S)1.91
P/FCF Ratio-435.83
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue5.44
Enterprise Value/Gross Profit16.06
Enterprise Value/Ebitda29.57
Forecast
1Y Price Target
$75.25Price Target Upside70.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.29
Revenue Forecast (FY)$14.29B
STMicroelectronics Business Overview & Revenue Model
Company Description
STMicroelectronics N.V., founded in 1987 and headquartered in Schiphol, Netherlands, is a prominent global semiconductor company. It engages in the entire product lifecycle, from designing and developing to manufacturing and selling semiconductor ...
How the Company Makes Money
STMicroelectronics primarily makes money by selling semiconductor products to customers that integrate these components into end products such as vehicles, factory automation equipment, power systems, consumer and personal electronics, and communi...
STMicroelectronics Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive commercial momentum with strong year‑over‑year growth across multiple segments, robust bookings, strategic wins (AWS engagement, photonics PIC100, NXP MEMS acquisition) and an upgraded 2026 top‑line outlook. However, near‑term profitability and cash generation are affected by restructuring charges, acquisition cash outflow, temporary manufacturing inefficiencies and higher OpEx to accelerate new opportunities. Management expects margins and operational benefits to improve sequentially through 2026 with more substantial benefits materializing in late 2027 and 2028.Positive Updates
Quarterly Revenue and Guidance
Q1 net revenues $3.1B (includes ~$40M from NXP MEMS). Q2 guidance $3.45B ±350bps (midpoint +11.6% sequential, +24.9% YoY). Company expects full-year 2026 revenues to show double-digit growth.
Negative Updates
Sequential Softness in Several Segments
On a sequential basis Q1 declines: Automotive -10%, Personal Electronics -14%, Analog/MEMS & Sensors -9.1%, Power & Discrete -5.4%, Embedded Processing -4%, RF & Optical -9%. Several key segments showed quarter-on-quarter softness.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue and Guidance
Q1 net revenues $3.1B (includes ~$40M from NXP MEMS). Q2 guidance $3.45B ±350bps (midpoint +11.6% sequential, +24.9% YoY). Company expects full-year 2026 revenues to show double-digit growth.
Read all positive updates
Company Guidance
ST guided Q2 revenues of $3.45 billion (±350 basis points), which at the midpoint implies +11.6% sequential and +24.9% year‑over‑year growth, and said revenues should be well above average seasonality; Q2 gross margin is expected to be about 34.8% (±200 bps) including roughly 100 bps of unused‑capacity charges (non‑U.S. GAAP gross margin ~35.2%), while Q2 non‑U.S. GAAP net OpEx is guided to $950–$960 million (higher sequentially due to calendar effects, start‑up costs and one extra month of NXP MEMS OpEx). For full‑year 2026, like‑for‑like net OpEx is expected up mid‑to‑high single digits y/y (low‑double‑digit up including the NXP acquisition and FX, with ~ $50M of added NXP OpEx and an FX assumption around $/€1.15–1.16); the company reiterated data‑center revenues “nicely above” $500M in 2026 and well above $1B in 2027, reaffirmed a path to sequential gross‑margin improvement (despite ~50 bps of nonrecurring reshaping costs persisting this year) and the longer‑term target of >40% gross margin when quarterly revenues exceed ~$4B.STMicroelectronics Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.40B | 11.84B | 13.27B | 17.29B | 16.13B | 12.76B |
| Gross Profit | 4.20B | 4.01B | 5.22B | 8.29B | 7.63B | 5.33B |
| EBITDA | 2.28B | 2.26B | 3.72B | 6.38B | 5.71B | 3.42B |
| Net Income | 144.73M | 166.51M | 1.56B | 4.21B | 3.96B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 25.13B | 24.80B | 24.74B | 24.45B | 19.98B | 15.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.57B | 4.92B | 6.18B | 6.08B | 4.52B | 3.52B |
| Total Debt | 2.57B | 2.13B | 3.17B | 3.17B | 2.91B | 2.74B |
| Total Liabilities | 6.96B | 6.58B | 7.06B | 7.60B | 7.22B | 6.27B |
| Stockholders Equity | 17.77B | 17.83B | 17.45B | 16.73B | 12.69B | 9.21B |
Cash Flow | ||||||
| Free Cash Flow | 76.80M | -52.00M | -216.00M | 1.46B | 1.57B | 1.12B |
| Operating Cash Flow | 2.11B | 2.15B | 2.96B | 5.99B | 5.20B | 3.06B |
| Investing Cash Flow | -960.70M | -43.00M | -3.74B | -5.77B | -4.59B | -1.52B |
| Financing Cash Flow | -1.04B | -1.56B | -155.00M | -267.00M | -567.00M | -1.31B |
STMicroelectronics Technical Analysis
Neutral
44.22
Price Trends
66.24
Positive
50.56
Positive
38.54
Positive
Market Momentum
1.43
Positive
46.00
Neutral
22.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Neutral. The current price of 44.22 is below the 20-day moving average (MA) of 74.36, below the 50-day MA of 66.24, and above the 200-day MA of 38.54, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STM.
STMicroelectronics Risk Analysis
STMicroelectronics disclosed 35 risk factors in its most recent earnings report. STMicroelectronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
STMicroelectronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $24.59B | 135.97 | 13.19% | ― | 27.05% | ― | |
71 Outperform | $67.14B | 41.27 | 13.50% | 6.06% | 7.52% | 17.94% | |
69 Neutral | $47.07B | 61.23 | 6.66% | ― | 0.80% | ― | |
63 Neutral | $47.66B | 83.55 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $63.14B | 415.80 | 0.86% | 1.28% | 0.79% | -86.68% | |
62 Neutral | $93.70B | 67.00 | 14.45% | 2.29% | 15.55% | 43.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
STM
STMicroelectronics
68.35
36.35
113.58%
ASX
ASE Technology Holding Co
41.87
31.50
303.76%
MTSI
MACOM Technology Solutions Holdings
322.26
181.58
129.07%
ON
ON Semiconductor
91.22
34.62
61.17%
UMC
United Micro
24.54
16.71
213.41%
GFS
GlobalFoundries Inc
69.84
30.10
75.73%
STMicroelectronics Corporate Events
STMicroelectronics Prices US$1.5 Billion Dual-Tranche Convertible Bond Offering
Jun 16, 2026
On June 16, 2026, STMicroelectronics priced a US$1.5 billion dual-tranche issuance of senior unsecured convertible bonds, split into US$750 million notes maturing in 2031 and US$750 million notes maturing in 2033. The 2031 bonds are zero-coupon, w...
STMicroelectronics Launches $1.5 Billion Dual-Tranche Convertible Bond Offering and Calls 2027 Notes Early
Jun 16, 2026
On June 16, 2026, STMicroelectronics N.V. launched a US$1.5 billion dual-tranche offering of senior unsecured convertible bonds, with new 5-year notes due 2031 and 7-year notes due 2033, both issued at par and carrying low coupon ranges. The bonds...
STMicroelectronics Lifts 2026 Data Center Revenue Target on Surging AI Demand
Jun 2, 2026
On June 2, 2026, STMicroelectronics raised its revenue ambition for data center products, citing continued strong demand for AI infrastructure and progress in ramping up production capacity. The company now expects about $1 billion in data center ...
STMicroelectronics Shareholders Approve All Resolutions and $0.36 Dividend at 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics held its Annual General Meeting of Shareholders in Amsterdam, where investors approved all resolutions on the agenda. The AGM validated the 2025 statutory accounts under IFRS, confirmed board governance items in...
STMicroelectronics Names New Chairman and Vice-Chairman After 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics’ Supervisory Board acted following the company’s Annual General Meeting of Shareholders in Amsterdam, appointing Armando Varricchio as Chairman and Nicolas Dufourcq as Vice-Chairman for a three-year ...
STMicroelectronics Posts Strong Year-on-Year Q1 2026 Revenue Growth Despite Sequential Dip
May 4, 2026
STMicroelectronics reported first-quarter 2026 results on May 4, 2026, filing a Form 6-K that includes its operating and financial review, unaudited interim consolidated financial statements, and Sarbanes-Oxley certifications. For the three months...
STMicroelectronics Posts Strong Q1 2026 Growth and Signals AI-Driven Datacenter Upside
Apr 23, 2026
On April 23, 2026, STMicroelectronics reported first-quarter 2026 net revenues of $3.10 billion, up 23% year-on-year, including about $40 million from the recently acquired NXP MEMS sensor business, with gross margin at 33.8% and operating income ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.