One-glance verdict
Within fair range
$34.80 our estimate vs market $52.24
Wall Street consensus: $75.04 (115.6% higher than our fair-value estimate)
50% above our estimate
Fundamentals snapshot
STMicroelectronics N.V.
STM · NYQ · Technology · Semiconductors
Current price
$52.24
52-week range
$21.11 - $81.42
Market cap
$46.59B
Balance sheet
Healthy
5.87x Adequate
Net cash $1.80B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Free cash flow was positive in 2/10 years.
- Reward Dividend yield is 0.7% with 28-year payout history.
- Risk Operating margin compressed from 26.5% to 6.9% over 3 years.
What this company does
STMicroelectronics N.V.
STMicroelectronics makes semiconductors, the tiny electronic chips that act as the brains for countless products you use daily. A large part of its sales comes from car manufacturers and industrial companies, which use these chips in everything from electric vehicles to factory robots. Because these chips are so fundamental to modern technology, the company is a critical link in the global supply chain (the network of companies involved in creating and delivering a final product).
How the company got here
STMicroelectronics, often called ST, was created in 1987 through a merger of two government-owned semiconductor companies, one from Italy (SGS Microelettronica) and one from France (Thomson Semiconducteurs). The goal was to create a European company that could compete with the big American and Japanese chip makers. The company went public in 1994, selling its shares on the stock market to raise money for growth. Over the years, it has focused on making specialized chips for cars, industrial equipment, and personal electronics, becoming one of the largest semiconductor companies in Europe.
What it actually does
STMicroelectronics designs and manufactures semiconductors, which are tiny electronic components, often called chips, that are the brains inside almost every electronic device you use. Think of them as the essential building blocks for everything from your smartphone and car to factory equipment and home appliances. The company makes a huge variety of these chips, including those that process information (like microcontrollers), sense things like motion and temperature (sensors), and manage power. Essentially, ST makes the crucial internal parts that allow your electronic gadgets to function.
Automotive and Discrete Group (ADG)
This is one of the company's major business areas, focused on making chips for the automotive industry. These aren't the big, complex processors, but rather the specialized chips that make modern cars work, such as those controlling the engine, ensuring safety features like airbags function correctly, and managing the car's electrical systems. As cars become more electric and have more smart features, like driver-assistance systems, this part of the business has become increasingly important. This segment sells its products directly to car manufacturers and their suppliers.
Analog, MEMS and Sensors Group (AMS)
This group creates chips that interact with the real world. Analog chips are important for managing power and signals in devices, while MEMS (Micro-Electro-Mechanical Systems) are tiny sensors that can detect things like motion, pressure, and sound. You'll find these components in smartphones (for screen rotation and navigation), wearable fitness trackers, and even in cars for stability control. This segment is a key supplier to the personal electronics and automotive markets.
Microcontrollers and Digital ICs Group (MDG)
This part of the company produces microcontrollers, which are essentially small, simple computers on a single chip. These are not as powerful as the processor in your laptop, but they are perfect for controlling specific tasks in all sorts of devices, from washing machines and remote controls to industrial machinery. The STM32 family of microcontrollers is a very popular product line used by many electronics designers. This segment sells to a very broad range of customers in the industrial, automotive, and personal electronics markets.
What management is betting on now
The company is heavily focused on providing chips for electric vehicles and smart driving systems, seeing this as a major area for growth. They are particularly investing in a technology called silicon carbide, which is very efficient for managing power in electric cars. Another key priority is the industrial market, supplying chips for factory automation, robotics, and energy management. Management is also betting on the growth of "edge AI," which involves putting artificial intelligence capabilities directly into devices rather than relying on the cloud, and is expanding its manufacturing capabilities to meet future demand.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$11.80B
Net income
$166.00M
Diluted EPS
0.18
Operating cash flow
$2.15B
Free cash flow
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Sources
Revenue
$13.27B
Net income
$1.56B
Diluted EPS
1.66
Operating cash flow
$2.96B
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $34.80 vs current price $52.24
Wall Street consensus is the average analyst price target: $75.04 (115.6% higher than our fair-value estimate).
Our most-likely fair value is $34.80 a share — about 33.4% away from today's price of $52.24, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $1.8B - more cash than debt. Interest coverage 5.9x.
Net debt
$-1.80B
Interest coverage
5.87x
STMicroelectronics N.V.'s profit covers its interest bill about 5.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
STM
BASELINE
STMicroelectronics N.V.
Total debt $4.23B Interest coverage 5.87x This is the baseline the peer rows are being compared against.
Total debt $10.98B Interest coverage 6.51x +11% vs STM Has roughly the same debt cushion as STM.
Total debt $5.40B Interest coverage 2.46x -58% vs STM Carries about 2.4x less debt cushion than STM.
Total debt $4.71B Interest coverage 10.59x +80% vs STM Carries about 1.8x more debt cushion than STM.
Total debt $8.42B Interest coverage 8.80x +50% vs STM Carries about 1.5x more debt cushion than STM.
Total debt $7.53B Interest coverage 0.82x -86% vs STM Carries about 7.2x less debt cushion than STM.
What you should know
The case for and against STM
2 Rewards
1 Risk
Rewards
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 0.7% with 28-year payout history.
Risks
-
Operating margin compressed from 26.5% to 6.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
20.56x
P/B
2.64x
P/S
3.56x
EV/EBITDA
16.38x
PEG ratio
0.19x
Profitability
How much profit each dollar creates
Gross margin
34.3%
Operating margin
6.9%
Net margin
3.6%
ROE
2.7%
ROA
2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.23x
Current ratio
2.78x
Quick ratio
1.98x
Total debt
$4.23B
Total cash
$6.03B
Growth
How the business has been compounding
Revenue TTM
$58.48B
Revenue 5Y CAGR
-1.9%
EPS TTM
-0.06
EPS 5Y CAGR
-66.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$16.31B
Free CF TTM
$-52.00M
FCF margin
-0.1%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
70.6%
Last ex-div date
2026-09-22