STMicroelectronics NV

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STM : NYSE : Technology
$19.89 up 0.29 | 1.5%
Today's Range: 19.58 - 19.9
Avg. Daily Volume: 3988900.0
09/19/17 - 3:59 PM ET

Financial Analysis


STMICROELECTRONICS NV's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. STMICROELECTRONICS NV has strong liquidity. Currently, the Quick Ratio is 1.54 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.56% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)1923.01703.0
EBITDA ($mil)334.0216.0
EBIT ($mil)182.037.0
Net Income ($mil)150.023.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1989.02027.0
Total Assets ($mil)8746.08117.0
Total Debt ($mil)1465.01601.0
Equity ($mil)4835.04495.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin46.2344.39
EBITDA Margin17.3612.68
Operating Margin9.462.17
Sales Turnover0.850.83
Return on Assets5.040.91
Return on Equity9.121.64
Debt Q2 FY17 Q2 FY16
Current Ratio2.412.89
Debt/Capital0.230.26
Interest Expense10.010.0
Interest Coverage18.23.7


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)887.81883.27
Div / share0.060.06
EPS0.170.03
Book value / share5.455.09
Institutional Own % n/a n/a
Avg Daily Volume4020507.04580165.0

Valuation


BUY. STMICROELECTRONICS NV's P/E ratio indicates a discount compared to an average of 46.90 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 3.49 indicates a premium versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 5.49. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, STMICROELECTRONICS NV proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STM 38.02 Peers 46.90   STM 12.34 Peers 18.33

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STM is trading at a discount 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 18.28 Peers 21.72   STM 0.11 Peers 1.12

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

STM is trading at a valuation on par with 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STM 3.49 Peers 5.49   STM 525.00 Peers 122.55

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.

 

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

STM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STM 2.28 Peers 5.24   STM 9.67 Peers 25.22

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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