STMicroelectronics N.V. (NYSE:STM) is a global semiconductor company that designs and manufactures a wide range of electronic components. The company operates in various sectors, including automotive, industrial, and personal electronics. STM faces competition from other semiconductor giants like Texas Instruments and Infineon Technologies. The company is set to release its quarterly earnings on Thursday, July 24, 2025, with Wall Street analysts estimating an earnings per share of $0.10 and projected revenue of approximately $2.74 billion.
Despite the upcoming earnings report, STM is currently rated as a Hold. The company faces several challenges, such as ongoing tariff risks and a decline in U.S. auto demand. These factors contribute to limited visibility into a potential recovery in the second half of 2025. However, STM benefits from its diversified geographic exposure and healthier OEM inventories, which provide some balance.
STM is dealing with margin pressures and high inventory days, which are common issues in the semiconductor industry. While there is an improvement in gross margin expectations, foreign exchange headwinds and a lack of free cash flow highlight the company's cyclical vulnerability and operational challenges. The company's price-to-earnings (P/E) ratio is approximately 28.32, indicating how much investors are willing to pay per dollar of earnings.
The company's price-to-sales ratio stands at about 2.42, reflecting the market's valuation of its revenue. The enterprise value to sales ratio is around 2.51, suggesting the company's total valuation relative to its sales. With an enterprise value to operating cash flow ratio of approximately 11.55, STM shows how its cash flow is valued in relation to its enterprise value. The earnings yield is about 3.53%, providing insight into the return on investment for shareholders.
STM has a debt-to-equity ratio of roughly 0.16, indicating a relatively low level of debt compared to equity. This suggests that the company is not heavily reliant on borrowed funds. Additionally, the current ratio is approximately 3.05, suggesting strong liquidity and the ability to cover short-term liabilities. These financial metrics provide a comprehensive view of STM's current financial health and market position.
