Last Updated: 07 Nov 2024
Executive Summary
STMicroelectronics NV ADR (STM) is a leading semiconductor manufacturer with a strong global presence. The company has a diverse product portfolio that includes automotive, industrial, and consumer electronics. STM is currently trading at $26.5, below its 52-week high of $50.92. The company has a market capitalization of $24.01 billion and a trailing P/E ratio of 10.98.
Company Overview
STMicroelectronics was founded in 1987 and is headquartered in Geneva, Switzerland. The company designs, develops, manufactures, and markets semiconductor products for a wide range of applications. STM's products are used in automotive, industrial, and consumer electronics. The company has a global presence with manufacturing facilities in Europe, Asia, and the Americas.
Fundamental Analysis
STM has a strong financial profile. The company has a healthy balance sheet with low debt and ample liquidity. STM's revenue and earnings have grown steadily in recent years. In 2023, the company reported revenue of $14.23 billion and net income of $2.43 billion. STM's profit margin is 14.5% and its return on equity is 12.5%.
Technical Analysis
STM's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 30, which indicates that the stock is oversold.
Short Term Outlook
STM's stock price is likely to remain under pressure in the short term. The company's earnings are expected to decline in the coming quarters due to the global economic slowdown. The stock's technical indicators are also bearish, which suggests that the stock could continue to decline in the near term.
Long Term Outlook
STM's long-term outlook is more positive. The company is a leader in the semiconductor industry and is well-positioned to benefit from the growing demand for semiconductors in the automotive, industrial, and consumer electronics markets. STM's stock is currently trading at a discount to its intrinsic value, which makes it an attractive investment for long-term investors.
Analyst Recommendations
The majority of analysts have a buy rating on STM. The average analyst target price is $36.09, which represents a potential upside of 36.2% from the current price.
Conclusion
STM is a well-established semiconductor company with a strong financial profile. The company's stock price is currently trading at a discount to its intrinsic value, which makes it an attractive investment for long-term investors. However, investors should be aware that the company's earnings are expected to decline in the coming quarters, which could put pressure on the stock price in the short term.
