STMicroelectronics is one of the world's pioneering semiconductor and integrated circuit manufacturers and marketers. With more than 50 years of experience, STMicroelectronics has carved out a comfortable niche in a highly competitive industry. Today, STMicroelectronics has become a giant in the chip and semiconductor market, with annual revenues of more than €10 billion.
With the technological advances of the 20th century, the electronics sector is a market that has potential to make sales and generate profits. But before investing in this highly competitive market, it is important to know the value of each stock beforehand.
Take a look at our article to find out key facts about STMicroelectronics stock, including its history, current financial situation, and stock market trends.
STMicroelectronics is a multinational company born from the merger between the Italian company SGS and the French company "Thomson Semiconducteurs", a subsidiary of the Thomson group. At the time of the merger in 1987, the company was named SGS-Thomson. Following Thomson's withdrawal from the capital in 1998, the company was renamed STMicroelectronics.
STMicroelectronics' headquarters are located in Amsterdam, The Netherlands. However, the administrative and operational headquarters are in Geneva, Switzerland. The company also has regional offices in the United States, China, Morocco, Tokyo and Singapore.
The new technology and electronics market is one of the world's toughest business sectors. After the merger in 1998, STMicroelectronics was in fourteenth place in the global semiconductor market. Seven years later, in 2005, it had climbed to fifth place behind the giants Intel, Samsung, Texas Instruments and the Japanese company Toshiba.
At present, the competition in this field includes leading electronics manufacturers as well as thousands of small and medium-sized manufacturers. Asian and especially Chinese products are beginning to gain a significant share of the world market. Chinese products are breaking into the Western market.
Nevertheless, STMicroelectronics is still among the top five electronic component manufacturers in the world.
The key figures of the Franco-Italian multinational can be summarized as follows:
The Covid19 pandemic and its fallout have spared STMicroelectronics. The multinational's financial health showed a positive balance sheet in 2020. The world leader in the electronic components market has confirmed its position and maintained its pace.
Is this enough to invest in STMicroelectronics stock? What do the other figures show? What is the current price trend on the stock market? And what is the future of STMicroelectronics compared to its competitors? The answers to all these questions can be found in the following paragraphs.
The 2020 fiscal year ended December 31 shows values in the green for all business lines. Revenue for 2020 was $10.22 billion with a gross margin of 37.1%. The operating margin generated is close to 13%. Thus, the net result, all activities combined, is $1.11 billion with an increase of 7.2% compared to the result of 2019. Here is the evolution of STMicroelectronics' revenue and net income in 2019-2018 and 2017:
For information purposes, the breakdown of STMicroelecronics' capital is summarized as follows:
STMicroelectronics is listed on various stock market indexes : Euronext, NYSE and Borsa Italiana. The share price recorded on April 6, 2021 was EUR 33,265 per share. A slight increase is noted compared to the closing value on the previous day, of about 0.57%. For the past year, the share price has been appreciating more and more.
For 2021 and 2022, the forecast for net dividends per share and net earnings per share are summarized as follows:
The forecast net yield for the two years is 0.61%. It should be noted in passing that the net dividend for 2020 is €0.15 per share for a net profit of €0.99. This represents a yield of 0.47%.