STMicroelectronics N.V.

STMPA.PA

Semiconductors · Technology

Price

€43.08

+0.09 (+0.21%)

Market Cap

€38.42B

Exchange

Euronext Paris

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

Mixed

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Winston Score History

The full picture

STMicroelectronics makes semiconductors — the tiny chips that power everyday electronics. Its products include microcontrollers, power management chips, and sensors used in cars, smartphones, industrial machines, and home appliances. The company is one of Europe's largest chipmakers and supplies major customers like Apple, Tesla, and many automotive manufacturers.

ST earns money by selling chips directly to device makers and manufacturers around the world. It operates globally, with major facilities in Europe, Asia, and the Americas, and generates roughly $13 billion in annual revenue. Its competitive position comes from deep expertise in automotive and industrial chips, where long customer relationships and complex designs make it hard for rivals to quickly replace them. The biggest growth driver is demand for chips in electric vehicles and energy-efficient industrial systems, but the company currently faces a sharp industry downturn, with falling orders and shrinking margins putting pressure on near-term profitability.

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

R&D Spend

$2.1B/ year

→ Flat (+2% vs prior year)

17.3% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

28.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$6.2B cash & investments at current burn rate

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.

Share count broadly stable

−0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 924.8M (2021) → 923.1M (2025)

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

3.6%

Weak — 3.6% 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

+14.5%

Fast-growing sales (+14.5% 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

367%

Turns 367% of profit into real cash

Spare cash per sale

FCF Margin

2.2%

Thin free cash flow (2.2%)

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

14.48x

Comfortably covers interest (14.5x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

81.3x

Expensive — P/E 81.3

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

Cheaper or dearer next year

P/E vs Forward

+68.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (81.3 → 13.1)

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Dividends

Dividend

Dividend Yield

0.72%

Small dividend — 0.72% yield

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

Dividend record

Dividend Growth

+0.6%

Dividend flat

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