STMicroelectronics N.V. Common Stock (STM)

FairStock Score: 25/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 23.0% demonstrates strong top-line momentum
• Established organization with 49,157 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($8) with negative 494% margin of safety—limited downside protection

AI Analysis

STMicroelectronics N.V. Common Stock is a mid-cap technology company valued at $44.8 billion. The business generates $11.8 billion in annual revenue with a 0.3% net margin. From a quality standpoint, STMicroelectronics shows Altman Z-Score of 5.1 confirms fortress-level solvency and modest 1% ROE. On valuation, the stock is commanding a steep 310.7x multiple, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 23.0% and profit growth of -33.9%. Our composite FairStock Score of 25/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

STMicroelectronics's 23% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 311x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer