STMicroelectronics N.V.

SGM.DE

Semiconductors · Technology

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Winston Score History

The full picture

STMicroelectronics makes the tiny computer chips found inside everyday products like cars, smartphones, and home appliances. Its main products include microcontrollers, power chips, and sensors, sold to manufacturers in the automotive, industrial, and consumer electronics industries. It is one of the largest chipmakers in Europe and competes globally with companies like Texas Instruments and Infineon.

The company earns money by selling chips directly to manufacturers, with no subscription model — revenue rises and falls with customer demand. STMicroelectronics operates worldwide, with major customers in Europe, Asia, and North America, and runs its own chip factories, which gives it some control over supply but also means high fixed costs. The biggest growth driver is demand for chips in electric vehicles and industrial automation, but the company is currently facing a sharp slowdown in orders, which is squeezing its margins and pushing its return on capital close to zero.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+26.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+327.3% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

28.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€6.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

STMicroelectronics N.V. grew revenue 26% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

34.8%

Modest — 34.8% gross margin

Profit after running costs

Operating Margin

6.3%

Modest — 6.3% operating margin

Return on the money invested

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+10.6%

Steady sales growth (+10.6% YoY)

Profit growth

EPS YoY

-26.4%

Earnings shrinking (-26.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

487%

Turns 487% of profit into real cash

Spare cash per sale

FCF Margin

3.2%

Thin free cash flow (3.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.23

Conservative — low debt load (0.23)

Covers its interest

Interest Cover

12.71x

Comfortably covers interest (12.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

81.2x

no trend

Expensive — P/E 81.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+67.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (81.2 → 13.3)

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Dividends

Dividend

Dividend Yield

0.71%

no trend

Small dividend — 0.71% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+0.6%

no trend

Dividend flat

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