STMicroelectronics N.V. Fundamental Analysis (XETRA: SGM.DE)
STMicroelectronics N.V. (XETRA: SGM.DE) shows weak financial fundamentals with a PE ratio of 94.89, profit margin of 3.54%, and ROE of 2.61%. The company generates $13.2B in annual revenue with weak year-over-year growth of -7.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGM.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakSGM.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSGM.DE shows balanced valuation metrics.
Growth Score
WeakSGM.DE faces weak or negative growth trends.
Financial Health Score
ExcellentSGM.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateSGM.DE maintains healthy but balanced margins.
Key Financial Metrics
Is SGM.DE Expensive or Cheap?
P/E Ratio
SGM.DE trades at 94.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SGM.DE's PEG of -3.08 indicates potential undervaluation.
Price to Book
The market values STMicroelectronics N.V. at 2.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.66 times EBITDA. This signals the market has high growth expectations.
How Well Does SGM.DE Make Money?
Net Profit Margin
For every $100 in sales, STMicroelectronics N.V. keeps $3.54 as profit after all expenses.
Operating Margin
Core operations generate 5.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.61 in profit for every $100 of shareholder equity.
ROA
STMicroelectronics N.V. generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
STMicroelectronics N.V. produces operating cash flow of $2.27B, showing steady but balanced cash generation.
Free Cash Flow
STMicroelectronics N.V. produces free cash flow of $420.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
SGM.DE converts 0.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
94.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How SGM.DE Stacks Against Its Sector Peers
| Metric | SGM.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 94.89 | 34.40 | Worse (Expensive) |
| ROE | 2.61% | 730.00% | Weak |
| Net Margin | 3.54% | -3110.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 0.22 | Neutral |
| Current Ratio | 2.78 | 6.05 | Strong Liquidity |
| ROA | 1.72% | 254.00% | Weak |
SGM.DE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews STMicroelectronics N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.09%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-84.00%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-10.33%
Industry Style: Growth, Innovation, High Beta
Declining