STMicroelectronics N.V.
STMicroelectronics N.V. Fundamental Analysis
STMicroelectronics N.V. (STMEF) shows weak financial fundamentals with a PE ratio of 182.09, profit margin of 1.41%, and ROE of 0.97%. The company generates $10.9B in annual revenue with weak year-over-year growth of -23.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 7.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STMEF's fundamental strength across five key dimensions:
Efficiency Score
WeakSTMEF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTMEF shows balanced valuation metrics.
Growth Score
WeakSTMEF faces weak or negative growth trends.
Financial Health Score
ExcellentSTMEF maintains a strong and stable balance sheet.
Profitability Score
WeakSTMEF struggles to sustain strong margins.
Key Financial Metrics
Is STMEF Expensive or Cheap?
P/E Ratio
STMEF trades at 182.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STMEF's PEG of -2.30 indicates potential undervaluation.
Price to Book
The market values STMicroelectronics N.V. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.42 times EBITDA. This signals the market has high growth expectations.
How Well Does STMEF Make Money?
Net Profit Margin
For every $100 in sales, STMicroelectronics N.V. keeps $1.41 as profit after all expenses.
Operating Margin
Core operations generate 2.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.97 in profit for every $100 of shareholder equity.
ROA
STMicroelectronics N.V. generates $0.70 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 $2.10B, showing steady but balanced cash generation.
Free Cash Flow
STMicroelectronics N.V. generates weak or negative free cash flow of $-12.51M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
STMEF converts -0.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
182.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How STMEF Stacks Against Its Sector Peers
| Metric | STMEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 182.09 | 35.62 | Worse (Expensive) |
| ROE | 0.97% | 1161.00% | Weak |
| Net Margin | 1.41% | -126170.00% (disorted) | Weak |
| Debt/Equity | 0.12 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 3.36 | 5.83 | Strong Liquidity |
| ROA | 0.70% | -308589.00% (disorted) | Weak |
STMEF outperforms its industry in 2 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
38.27%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
50.23%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
58.05%
Industry Style: Growth, Innovation, High Beta
High Growth