Zacks Investment Research·1 day ago
STM Stock Trades at Lofty Valuations: Is It Still Attractive?STM's AI, automotive and industrial momentum is supporting growth as investors weigh whether its premium valuation remains justified.
STMicroelectronics N.V.(STM)Earnings, Financials & Key Ratios
STM•NYSE
$70.72
392.9× P/E·Price updated Jul 7, 2026
AboutSTMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.Show more
- Revenue$11.84B-10.8%
- EBITDA$401M-88.3%
- Net Income$167M-89.3%
- EPS (Diluted)0.18-89.2%
- Gross Margin33.89%-13.9%
- EBITDA Margin3.39%-86.9%
- Operating Margin2.74%-78.3%
- Net Margin1.41%-88.0%
- ROE0.93%-89.7%
STM Price & Volume
STMicroelectronics N.V. (STM) stock price & volume — 10-year historical chart
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Cyclical Margin Compression Challenges Integrated Manufacturing Model
Investment Thesis • Updated 2026Q1
VerdictNegative
Growth:Contracting
Profitability:Strained
Financial:Healthy
Cash Flow:Deteriorating
Primary Risk:Cyclical Fab Underutilization
Key Thesis Takeaways
- STMicroelectronics faces a difficult cyclical transition as revenue contracted 22.8% year-over-year in 2026Q1, driven by persistent weakness in automotive and industrial end-markets.
- While the company maintains a conservative balance sheet with a 0.14 debt-to-equity ratio, the erosion of operating margins from 23.9% in 2023Q4 to 3.1% in 2026Q1 suggests significant structural headwinds.
- Investors should monitor the company's ability to manage high capital intensity, evidenced by a 12.2% CapEx/Rev ratio, as it navigates a period of zero deferred revenue and volatile cash flow conversion.
Verdict Logic
the combination of a 22.8% revenue decline and the disappearance of deferred revenue suggests limited near-term visibility and ongoing operational strain.
STM Growth Metrics
STMicroelectronics N.V. (STM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.55%
5 Years2.98%
3 Years-9.8%
TTM0.59%
Profit CAGR
10 Years-0.5%
5 Years-31.52%
3 Years-65.23%
TTM-86.86%
EPS CAGR
10 Years4.14%
5 Years-31.57%
3 Years-66.39%
TTM-86.32%
Return on Capital
10 Years14.71%
5 Years17.13%
3 Years11.53%
Last Year1.53%
STM Recent Earnings
STMicroelectronics N.V. (STM) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
Apr 23, 2026Metric
Actual
Est
EPS
$0.13-31.6%
$0.19
Rev
$3.1B+1.2%
$3.1B
Q1 2026
Jan 29, 2026Metric
Actual
Est
EPS
$0.11-59.3%
$0.27
Rev
$3.3B+1.4%
$3.3B
Q4 2025
Oct 23, 2025Metric
Actual
Est
EPS
$0.29+31.8%
$0.22
Rev
$3.2B-3.6%
$3.3B
Q3 2025
Jul 24, 2025Metric
Actual
Est
EPS
$0.06-40.0%
$0.10
Rev
$2.8B-11.9%
$3.2B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 23, 2026 | $0.13vs $0.19-31.6% | $3.1Bvs $3.1B+1.2% |
| Q1 2026 | Jan 29, 2026 | $0.11vs $0.27-59.3% | $3.3Bvs $3.3B+1.4% |
| Q4 2025 | Oct 23, 2025 | $0.29vs $0.22+31.8% | $3.2Bvs $3.3B-3.6% |
| Q3 2025 | Jul 24, 2025 | $0.06vs $0.10-40.0% | $2.8Bvs $3.2B-11.9% |
Based on last 12 quarters of dataView full earnings history →
Latest STM News
Recent stock market news and headlines for STMicroelectronics N.V. (STM)
GlobeNewsWire·5 days ago
STMicroelectronics Announces Timing for Second Quarter 2026 Earnings Release and Conference CallPR N° C3399C STMicroelectronics Announces Timing for Second Quarter 2026 Earnings Release and Conference Call Geneva – July 3, 2026 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced that it will release second quarter 2026 earnings before the opening of trading on the European Stock Exchanges on July 23, 2026. The press release will be available immediately after the release on the Company's website at www.st.com.
247 Wallst·5 days ago
Goldman’s Top Strategist Says Europe Is Quietly Keeping Pace With the S&P 500. Here’s the AI Spillover Nobody’s WatchingPeter Oppenheimer, Goldman Sachs' Chief Global Equity Strategist, went on Bloomberg on July 1, 2026 and pointed at a statistic most US-focused investors have missed: European equities have kept pace with the S&P 500 through the first half of the year, despite carrying a fraction of the tech weight. The tortoise is running even with... Goldman's Top Strategist Says Europe Is Quietly Keeping Pace With the S&P 500. Here's the AI Spillover Nobody's Watching
Zacks Investment Research·6 days ago
Can STMicroelectronics' China-for-China Strategy Lift MCU Momentum?STM advances its China-for-China strategy, as local STM32 wafer supply and stronger industrial demand support MCU momentum.
GuruFocus·Jun 29, 2026
STMicroelectronics NV (STM) Shares Surge 4.7% -- What GF Score of 72 Tells InvestorsOn June 29, 2026, STMicroelectronics NV (STM) shares rose 4.7% to a current price of $74.79. This price movement comes amidst a notable 52-week range, with a hi
Peers Comparison
Key metrics vs top competitors for STMicroelectronics N.V. (STM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $70.72 | $62.86B | 392.89 | -10.8% | 1.41% | 0.93% | 0.49% | |
| $293.30 | $267.04B | 53.82 | 13.05% | 29.11% | 32.49% | — | |
| $14.35 | $746.29M | 75.53 | -63.09% | 64.86% | 5.84% | — | |
| $91.10 | $35.7B | 314.14 | -15.35% | 9.46% | 7.43% | — | |
| $84.15 | $45.62B | 323.65 | 7.08% | 4.29% | 3.05% | — | |
| $273.15 | $68.96B | 34.36 | -2.74% | 21.03% | 25.21% | — |
Compare STM vs Peers
STMicroelectronics N.V. (STM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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STM Frequently Asked Questions
STMicroelectronics N.V. (STM) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is STMicroelectronics N.V.'s revenue?
STMicroelectronics N.V. (STM) reported $12.40B in revenue for fiscal year 2025. This represents a 201% increase from $4.12B in 1996.
How fast is STMicroelectronics N.V. growing?
STMicroelectronics N.V. (STM) saw revenue decline by 10.8% over the past year.
Is STM profitable?
Yes, STMicroelectronics N.V. (STM) is profitable, generating $144.7M in net income for fiscal year 2025 (1.4% net margin).
Dividend & Returns
Does STM pay dividends?
Yes, STMicroelectronics N.V. (STM) pays a dividend with a yield of 0.49%. This makes it attractive for income-focused investors.
What is STM's return on equity?
STMicroelectronics N.V. (STM) has a return on equity (ROE) of 0.9%. This is below average, suggesting room for improvement.
What is STMicroelectronics N.V.'s free cash flow?
STMicroelectronics N.V. (STM) generated $160.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.