STMicroelectronics Stock Analysis, Valuation (NYSE:STM)

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$23.43 $0.49 (2.05%) STM stock closing price May 18, 2018 (Closing)
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STMicroelectronics
Updated on : May 18, 2018
previous close
STM 23.4 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.83B
Debt/Equity Ratio:
 0.32
Compared to the industry
Cash Flow
Operating cash flow:
$455M
Net Income:
$239M
Dividend Yield
STM dividend yield:
0.85%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STM PS :
2.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
18.5%
Return on Equity:
17.9%
Free Cash Flow Margin:
4.7%
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STMicroelectronics Stock Analysis

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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 3.4/5

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 Q1 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 22.2% in 2018 Q1.
  • STMicroelectronics's average operating margin of 13% was exceptional.
  • LTM Net margins were good at 10.7% for STMicroelectronics.
  • The company has an operating cash flow which is 1.9 times the net income. We see this as a positive signal.
  • The STMicroelectronics stock currently trades at a price to earnings ratio of 20.6. We rate this as a positive, compared to the industry average of 25.1.
  • STMicroelectronics has an attractive ROIC (Return on Invested Capital) of 18.5%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for STMicroelectronics at 17.9%.

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.