STMicroelectronics (STM) Fundamental Analysis: Revenue, Earnings & Valuation

3.87 / 10

Netural

Fundamental score of 3.9/10 suggests a defensive stance. Key positives include an Interest coverage ratio of 15.51% and YoY growth in net cash flow from operations at -24.07%, but the latter is negative, indicating cash flow contraction. Other factors like PB-ROE (-0.0206) and Net income-Revenue (-0.3110) are in lower groups, pointing to value and profitability concerns. Overall, the fundamental picture is unfavorable for aggressive growth.

Analysis Checks(6/10)

Net cash flow from operating activities / Operating revenue (%)

Value6.50

Score2/3

Weight7.41%

1M Return3.75%

Net income-Revenue

Value-0.31

Score0/3

Weight8.05%

1M Return4.05%

PB-ROE

Value-0.02

Score1/3

Weight8.80%

1M Return4.29%

Total profit (YoY growth rate %)

Value-82.67

Score0/3

Weight1.48%

1M Return0.88%

Net cash flow from operating activities (YoY growth rate %)

Value-24.07

Score2/3

Weight7.24%

1M Return3.72%

Cash-UP

Value-0.05

Score1/3

Weight-5.11%

1M Return-3.32%

Net cash flow from operating activities / Total liabilities (%)

Value0.08

Score2/3

Weight5.94%

1M Return3.00%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.51

Score2/3

Weight4.64%

1M Return2.54%

Asset-MV

Value-0.51

Score2/3

Weight26.09%

1M Return10.66%

Cash-MV

Value-0.07

Score3/3

Weight35.47%

1M Return12.58%

Is STM undervalued or overvalued?

STM scores 3.87/10 on fundamentals and holds a Fair valuation at present. Backed by its 0.92% ROE, 1.53% net margin, 159.82 P/E ratio, 1.46 P/B ratio, and -89.02% earnings growth, these metrics solidify its Netural investment rating.