STMicroelectronics STM
STMicroelectronics is a European semiconductor manufacturer that designs and produces a wide range of chips for industrial, automotive, and consumer electronics applications, selling to original equipment manufacturers and through distributors. STM shows solid revenue growth (26.1%) and strong momentum (9.28), but its quality is weak (ROE 2.69, ROIC 4.12) and its valuation is not attractive (PER 20.44, FCF yield 0.23). The macro context of rising rates and geopolitical tensions adds pressure, although its net cash balance provides some resilience.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
STMicroelectronics is a European semiconductor manufacturer that designs and produces a wide range of chips for industrial, automotive, and consumer electronics applications, selling to original equipment manufacturers and through distributors. STM shows solid revenue growth (26.1%) and strong momentum (9.28), but its quality is weak (ROE 2.69, ROIC 4.12) and its valuation is not attractive (PER 20.44, FCF yield 0.23). The macro context of rising rates and geopolitical tensions adds pressure, although its net cash balance provides some resilience.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.3 |
| Quality / Moat | 2.5 |
| Valuation | 4.7 |
| Growth | 8.3 |
| Dividend | 4.6 |
| Momentum | 9.3 |
| Risk & Context | 3.5 |
OVERALL SCORE: 5.3/10
Context and risks
Geopolitical tensions between the US and Iran and concerns about AI security are putting downward pressure on technology and semiconductor stocks, affecting sector sentiment. Additionally, the rise in 10-year Treasury yields (5.17%) increases pressure on long-duration valuations, a relevant factor for STM.
News considered in the analysis
- European AI-linked stocks rally After Anthropic’s $11.6 bln computing deal — El repunte del sector tecnológico europeo por el acuerdo de Anthropic sugiere un mayor apetito por activos de semiconductores, aunque el impacto directo en STM es indirecto y ya está parcialmente reflejado en el precio.
- European AI-Related Stocks Rally as Confidence Returns — La renovada confianza en las acciones de IA europeas apoya el sentimiento del sector, beneficiando indirectamente a STM, aunque sin catalizadores específicos de la empresa.
- Most Active Options Report: FSLY, GDDY, STM — Ruido de mercado sin información fundamental nueva sobre la empresa.
- QCOM Launches Next-Gen Snapdragon SoCs: Will Agentic AI Drive Growth? — Noticia sobre un competidor (Qualcomm) sin impacto directo en STM.
- Is STMicroelectronics (ENXTPA:STMPA) Undervalued As It Launches A New In Car Sensor? — El lanzamiento de un nuevo sensor para automoción es un avance de producto relevante que podría impulsar el crecimiento en un segmento clave, aunque su impacto en beneficios aún no se ha materializado.
Verdict: Hold; the combination of strong growth and a healthy balance sheet is offset by weak returns on capital and an adverse macro environment for the tech sector.
Main risk: The main risk is cyclical exposure to semiconductors, with a low operating margin (6.88) making it vulnerable to a slowdown in demand for autos or industrial products, exacerbated by geopolitical tensions and rising energy costs.
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