STMicroelectronics Stock Analysis, Valuation (NYSE:STM)

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$19.5 $0.03 (0.15%) STM stock closing price Aug 20, 2018 (Closing)

Investors can watch the Amigobulls STMicroelectronics stock analysis video here. Our analyst opinion covering the buy and sell arguments for STM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

STMicroelectronics NV (ADR) Stock Rating 3.7/5

Amigobulls STM stock analysis takes into account various financial ratios like relative valuation, STMicroelectronics revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check STMicroelectronics dividend performance. We compare STMicroelectronics valuation with its sector peers to gauge relative attractiveness of STM stock. Our STMicroelectronics stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy STM stock?

  • The Year Over Year (YoY) revenue growth for STMicroelectronics was 18% in 2018-06.
  • The TTM operating margin was good at 13.67 for STMicroelectronics.
  • Net margins stood at a healthy 11.5% (average) for STMicroelectronics in the Trailing Twelve Months.
  • The STMicroelectronics stock currently trades at a price to earnings ratio of 15.6, compared to the sector average of 25.4. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 2.9, the price-to-sales ratio of 2 for STM stock is attractive.
  • STMicroelectronics's return on invested capital of 19.8 is good.
  • The LTM ROE of 19.4 for STMicroelectronics is attractive.

Should you sell STM stock?

Comments on this video and STMicroelectronics stock

Amigobulls STMicroelectronics stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of STM stock. Company's fundamentals remain one of the key driver of STM stock and helps investors in making good buy and sell decision.

STMicroelectronics revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about STM stock.