STMicroelectronics N.V. (STM) – Growth and Expansion in progress

STMicroelectronics N.V. (STM) (Q2FY23)

Stock performance: STMicroelectronics stock price showed a downward trend in the past 3-month period and gave -8% returns. The stock has a 52- week high of $55.85 and its 52-week low is $29.09.

Q2FY23 Performance: Net revenues were $4.33bn, an increase of 12.7% Y/Y driven by growth in Automotive and Industrial, partially offset by lower revenues in Personal Electronics. Gross margin was 49%, operating margin increased to 26.5% from 26.2% and net income increased 15.5% to $1bn.

Management Guidance: For Q3FY23, Net revenues are expected to be $4.38bn, an increase of 1.7% Y/Y and 1.1% sequentially, plus or minus350bps. Gross margin is expected to be 47.5%, plus or minus 200 basis points. For FY23, STM expects Revenue of $17.4bn, plus or minus $150mn with 8% Y/Y growth and a Gross Margin of 48%.

Highlights

STM (STMicroelectronics) has partnered with Sanan Optoelectronics to create a joint venture for high-volume 200mm Silicon Carbide device manufacturing in China. This collaboration addresses the growing demand for STM’s Silicon Carbide devices in China, especially in car electrification, industrial power and energy applications. Sanan will establish a separate 200mm Silicon Carbide substrate manufacturing facility.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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