STMicroelectronics NV

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STM : NYSE : Technology
$11.6 up 0.01 | 0.086%
Today's Range: 11.54 - 11.65
Avg. Daily Volume: 2748600.0
01/20/17 - 3:56 PM ET

Financial Analysis


STMICROELECTRONICS NV's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. STMICROELECTRONICS NV has strong liquidity. Currently, the Quick Ratio is 1.81 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.86% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1797.01764.0
EBITDA ($mil)291.0281.0
EBIT ($mil)119.095.0
Net Income ($mil)71.090.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2017.02207.0
Total Assets ($mil)8278.08686.0
Total Debt ($mil)1553.01748.0
Equity ($mil)4580.04667.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin45.3545.35
EBITDA Margin16.1915.92
Operating Margin6.625.39
Sales Turnover0.820.81
Return on Assets0.661.66
Return on Equity1.23.1
Debt Q3 FY16 Q3 FY15
Current Ratio2.822.71
Debt/Capital0.250.27
Interest Expense10.09.0
Interest Coverage11.910.56


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)883.33878.51
Div / share0.060.1
EPS0.080.1
Book value / share5.185.31
Institutional Own % n/a n/a
Avg Daily Volume2811650.02240572.0

Valuation


BUY. STMICROELECTRONICS NV's P/E ratio indicates a significant premium compared to an average of 32.67 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.20 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.52. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STM 190.00 Peers 32.67   STM 11.09 Peers 18.82

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

STM is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

STM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STM 22.80 Peers 19.26   STM 1.57 Peers 1.90

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

STM is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

STM trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STM 2.20 Peers 4.52   STM -62.50 Peers 17.50

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, STM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STM 1.49 Peers 4.66   STM -3.93 Peers 12.67

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

STM is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

STM significantly trails its peers on the basis of sales growth

 

 

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