STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. The company has made structural improvements to its product mix and gross margin profile, which has allowed it to carve out a narrow economic moat. We think ST has some promising growth opportunities on the horizon in microcontrollers and automotive products, including silicon carbide-based semiconductors.
STMicroelectronics has an early lead and is recognizing exponential growth in silicon carbide-based power semis, most notably those included in the inverters in Tesla's electric vehicles.
STMicroelectronics has a greater presence in certain types of lower-margin power semiconductors that, when combined with significant manufacturing capacity, may depress future returns relative to some of its US-based pure-play analog peers.
|
Metric
|
STM
|
TXN
|
NXPI
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.89 | 37.42 | 17.68 |
Price/Book Value | 1.54 | 11.09 | 6.93 |
Price/Sales | 1.86 | 11.92 | 4.86 |
Price/Cash Flow | 5.98 | 31.08 | 15.78 |
|
Metric
|
STM
|
TXN
|
NXPI
|
|---|---|---|---|
Quick Ratio | 1.67 | 3.40 | 1.27 |
Current Ratio | 2.27 | 4.62 | 2.21 |
Interest Coverage | 41.64 | 14.57 | 8.53 |
|
Metric
|
STM
|
TXN
|
NXPI
|
|---|---|---|---|
Return on Assets (Normalized) | 14.95% | 16.43% | 13.39% |
Return on Equity (Normalized) | 21.95% | 32.38% | 36.81% |
Return on Invested Capital (Normalized) | 18.12% | 19.98% | 17.08% |
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1-Day Chart
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Name
|
Price
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Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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NVDA
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TXN
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| ARM Holdings PLC ADR
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| Micron Technology Inc
MU
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ADI
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INTC
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