STMicroelectronics N.V. Common Stock (STM)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

On 2026-10-13, the market priced STMicroelectronics at $49.57, giving it a $44.8 billion value. I look first at the business: it designs analog, MEMS, power, embedded-processing, and RF chips, and its 49,000 employees give it scale in automotive and industrial semiconductors, where design wins can create switching costs. But the current numbers are not those of a thriving franchise. In fiscal Q2 2026, revenue was $3.5 billion and net income was -$208.0 million, a -5.97% margin. FairStock’s P/E calculation is -826.17, which mainly confirms there is no trailing profit. FairStock’s P/B is 2.51, ROE 2.69%, ROCE 2.09%, and FCF yield only 0.5%. Those are thin returns for a semiconductor business. The balance sheet comforts me: D/E is 0.23 and the Altman Z-score is 3.92, so leverage does not look threatening. But the Piotroski F-score of 3/9 says financial quality is poor. EV/EBITDA of 19.64 is not cheap for a company generating only $216.0 million in trailing free cash flow. The 52-week range of $21.11 to $81.42 and beta of 1.51 show how cyclical and volatile this business is. FairStock scores it 44/100. Its Lynch category is none because only 0 years of filed results exist versus the 3 needed. Graham would ask for a margin of safety; at this price, I see none unless profitability recovers sharply. The 0.72% dividend yield is small compensation.

In plain English: STMicroelectronics makes semiconductor chips for cars, factories, sensors, power systems, and wireless products. The business looks weak at the moment: in its latest reported quarter it lost money and produced very little spare cash. At the 2026-10-13 close of $49.57, the shares look expensive compared with those weak profit and cash numbers, even though the company does not carry heavy debt.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer