The stock of ST Microelectronics (NYSE: STM) has increased by 1.20 when compared to last closing price of 45.74. Despite this, the company has experienced a 12.14% gain in its stock price over the last five trading sessions. Seeking Alpha reported 2023-10-30 that STMicroelectronics performances were driven by the auto division, and we believe there is further upside to growth. Solid balance sheet, higher DPS expected with an ongoing buyback. The company is planning new CAPEX with diversification by product and by region. New JV signed with Sanan Optoelectronics. This company has a solid EPS growth trajectory that is too much discounted. Our buy rating is then confirmed.
Is It Worth Investing in ST Microelectronics (NYSE: STM) Right Now?
The price-to-earnings ratio for ST Microelectronics (NYSE: STM) is 9.96x, which is above its average ratio. Moreover, the 36-month beta value for STM is 1.65. Analysts have varying opinions on the stock, with 12 analysts rating it as a “buy,” 5 as “overweight,” 7 as “hold,” and 1 as “sell.”
The average price recommended by analysts for ST Microelectronics (STM) is $55.32, which is $9.03 above the current market price. The public float for STM is 903.98M and currently, short sellers hold a 0.41% of that float. On November 21, 2023, STM’s average trading volume was 3.51M shares.
STM’s Market Performance
The stock of ST Microelectronics (STM) has seen a 12.14% increase in the past week, with a 16.39% rise in the past month, and a -1.34% fall in the past quarter. The volatility ratio for the week is 1.46%, and the volatility levels for the past 30 days are at 2.01% for STM. The simple moving average for the past 20 days is 12.83% for STM’s stock, with a -0.56% simple moving average for the past 200 days.
STM Trading at 9.36% from the 50-Day Moving Average
After a stumble in the market that brought STM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.12% of loss for the given period.
Volatility was left at 2.01%, however, over the last 30 days, the volatility rate increased by 1.46%, as shares surge +16.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.16% upper at present.
During the last 5 trading sessions, STM rose by +12.14%, which changed the moving average for the period of 200-days by -6.37% in comparison to the 20-day moving average, which settled at $41.35. In addition, ST Microelectronics saw 30.14% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for STM
Current profitability levels for the company are sitting at:
- +27.10 for the present operating margin
- +48.14 for the gross margin
The net margin for ST Microelectronics stands at +24.55. The total capital return value is set at 32.95, while invested capital returns managed to touch 30.46. Equity return is now at value 33.27, with 21.46 for asset returns.
Based on ST Microelectronics (STM), the company’s capital structure generated 22.93 points at debt to equity in total, while total debt to capital is 18.65. Total debt to assets is 14.56, with long-term debt to equity ratio resting at 21.14. Finally, the long-term debt to capital ratio is 17.20.
When we switch over and look at the enterprise to sales, we see a ratio of 2.23, with the company’s debt to enterprise value settled at 0.09. The receivables turnover for the company is 7.26 and the total asset turnover is 0.95. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.56.
To wrap up, the performance of ST Microelectronics (STM) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.