STMicroelectronics N.V. (STMPA.PA) stock analysis

In our weekly check, STMicroelectronics N.V. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8.

About STMicroelectronics N.V.

STMicroelectronics N.V. is a Technology company (Semiconductors) based in Switzerland, listed on PAR as STMPA.PA.

What our checks show for STMPA.PA

Red flags

• The net margin fell by 11.9 points over 5 years, to 3.7%: the company keeps less of each sale as profit.
• The gross margin fell by 6.4 points, to 35.3%: costs are rising faster than prices.
• Revenue fell 4.2% a year over the last 3 years.
• The net margin is only 3.7%: little room if costs rise.
• The price swings a lot: 54.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 8.1 years.
• Return on capital (ROCE) is only 4.5%.

Warning signs

• Earnings per share fell 48.8% a year over the last 3 years.
• Net profit fell 48.9% a year over the last 3 years.
• Free cash flow is only 4.3% of revenue.
• Beta 1.48: the stock usually moves more than the market, both up and down.

Strengths

• Net debt is only 0.2x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 17.7 times over.
• Operating cash flow is 5.18x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 131% a year over the next years.
• Analysts expect the net margin to improve by 16.8 points from today's 3.7%.
• The dividend takes 47% of profit: there is a cushion.

Next earnings report: 2027-01-28

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Questions

What grade does STMicroelectronics N.V. (STMPA.PA) have?

In our weekly check, STMicroelectronics N.V. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of STMPA.PA stock?

This week's biggest flags for STMicroelectronics N.V.: Margins falling, Gross margin falling, Weak revenue growth. In total 12 of 25 checks show a warning or a red flag.

What does STMicroelectronics N.V. do?

STMicroelectronics N.V. is a Technology company (Semiconductors) based in Switzerland, listed on PAR as STMPA.PA.

When does STMicroelectronics N.V. report earnings next?

The next earnings report is expected on 2027-01-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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