STMSTMicroelectronics N.V.
Is the business good?
The checks split: nothing decisive, though margins widening.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is STM?
STMicroelectronics N.V. earns 0.86% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 8.1 points below what the capital costs: growth destroys value
- Operating margin
- 1.5%
Operating margin · Semiconductors median 7.5% · fiscal year to FY2025
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 17%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 19% |
| FY2022 | 28% |
| FY2023 | 27% |
| FY2024 | 13% |
| FY2025 | 1.5% |
Details›
- Gross marginfiscal year to FY2025
- 34%
- Operating marginfiscal year to FY2025
- 1.5%
- Net marginfiscal year to FY2025
- 1.4%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $11.8B
- Net income, trailing twelve months
- $166M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.86%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.