Are STMicroelectronics N.V. (NYSE:STM) shares too expensive at this price?

As of close of business last night, STMicroelectronics N.V.’s stock clocked out at $49.32, up 3.18% from its previous closing price of $47.80. In other words, the price has increased by $+1.52 from its previous closing price. On the day, 3728249 shares were traded. STM stock price reached its highest trading level at $49.48 during the session, while it also had its lowest trading level at $48.59.

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To gain a deeper understanding of STM’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 10.22 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 31.57. For the most recent quarter (mrq), Quick Ratio is recorded 1.90 and its Current Ratio is at 2.60. In the meantime, Its Debt-to-Equity ratio is 0.21 whereas as Long-Term Debt/Eq ratio is at 0.20.

Upgrades & Downgrades

On December 12, 2022, Susquehanna started tracking the stock assigning a Positive rating and target price of $50.Susquehanna initiated its Positive rating on December 12, 2022, with a $50 target price.

Valuation Measures:

As of this moment, STMicroelectronics’s Price-to-Earnings (P/E) ratio for their current fiscal year is 11.78, and their Forward P/E ratio for the next fiscal year is 11.23. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.36. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.86 while its Price-to-Book (P/B) ratio in mrq is 3.52.

Stock Price History:

Over the past 52 weeks, STM has reached a high of $50.81, while it has fallen to a 52-week low of $28.35. The 50-Day Moving Average of the stock is 45.58, while the 200-Day Moving Average is calculated to be 37.88.

Shares Statistics:

It appears that STM traded 3.52M shares on average per day over the past three months and 3.96M shares per day over the past ten days. A total of 904.80M shares are outstanding, with a floating share count of 660.10M. Insiders hold about 28.40% of the company’s shares, while institutions hold 6.80% stake in the company. Shares short for STM as of Jan 12, 2023 were 5.4M with a Short Ratio of 5.39M, compared to 4.82M on Dec 14, 2022.

Dividends & Splits

With its trailing 12-month dividend rate of 0.24, STM has a forward annual dividend rate of 0.30. Against a Trailing Annual Dividend Yield of 0.50%, it implies a Forward Annual Dividend Yield of 0.48%. The stock’s 5-year Average Dividend Yield is 0.88. The current Payout Ratio is 5.50% for STM, which recently paid a dividend on Mar 27, 2023 with an ex-dividend date of Mar 19, 2023. Stock splits for the company last occurred on May 08, 2000 when the company split stock in a 3:1 ratio.

Earnings Estimates

As of right now, 9 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $0.97 for the current quarter, with a high estimate of $1.04 and a low estimate of $0.8, while EPS last year was $0.79. The consensus estimate for the next quarter is $0.99, with high estimates of $1.1 and low estimates of $0.8.

Analysts are recommending an EPS of between $4.36 and $3.5 for the fiscal current year, implying an average EPS of $4.05. EPS for the following year is $4.36, with 10 analysts recommending between $4.84 and $3.28.

Revenue Estimates

In the current quarter, 9 analysts expect revenue to total $4.13B. It ranges from a high estimate of $4.23B to a low estimate of $3.86B. As of the current estimate, STMicroelectronics N.V.’s year-ago sales were $3.55B, an estimated increase of 16.40% from the year-ago figure. For the next quarter, 9 analysts are estimating revenue of $4.2B, an increase of 9.50% less than the figure of $16.40% in the same quarter last year. There is a high estimate of $4.33B for the next quarter, whereas the lowest estimate is $4.01B.

A total of 10 analysts have provided revenue estimates for STM’s current fiscal year. The highest revenue estimate was $17.66B, while the lowest revenue estimate was $16.08B, resulting in an average revenue estimate of $17.1B. In the same quarter a year ago, actual revenue was $16.13B, up 6.00% from the average estimate. Based on 10 analysts’ estimates, the company’s revenue will be $17.92B in the next fiscal year. The high estimate is $19B and the low estimate is $16.4B. The average revenue growth estimate for next year is up 4.80% from the average revenue estimate for this year.