STMicroelectronics (NYSE: STM) shares currently have a dividend yield of 4.10%. STMicroelectronics N.V. engages in the design, development, manufacture, and marketing of various semiconductor integrated circuits and discrete devices worldwide. The average volume for STMicroelectronics has been 1,438,500 shares per day over the past 30 days. STMicroelectronics has a market cap of $8.7 billion and is part of the electronics industry. Shares are up 35.2% year to date as of the close of trading on Monday. TheStreet Ratings rates STMicroelectronics as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 96.20% over the past year, a rise that has exceeded that of the S&P 500 Index. Although STM had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Semiconductors & Semiconductor Equipment industry average, but is less than that of the S&P 500. The net income increased by 3.4% when compared to the same quarter one year prior, going from -$177.00 million to -$171.00 million.
- STMICROELECTRONICS NV has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STMICROELECTRONICS NV swung to a loss, reporting -$1.31 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$1.31).
- Net operating cash flow has significantly decreased to $66.00 million or 73.60% when compared to the same quarter last year. Despite a decrease in cash flow of 73.60%, STMICROELECTRONICS NV is in line with the industry average cash flow growth rate of -79.08%.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, STMICROELECTRONICS NV's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full STMicroelectronics Ratings Report.
- Our dividend calendar.
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