Yahoo Finance Interested In STMicroelectronics NV (EPA:STM)? Here’s What Its Recent Performance Looks Like
After reading STMicroelectronics NV’s (EPA:STM) latest earnings update (29 September 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether STM has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
View our latest analysis for STMicroelectronics
How Well Did STM Perform?
STM recently turned a profit of US$593m (most recent trailing twelve-months) compared to its average loss of -US$55.7m over the past five years.
In terms of returns from investment, STMicroelectronics has fallen short of achieving a 20% return on equity (ROE), recording 9.9% instead. Furthermore, its return on assets (ROA) of 6.1% is below the FR Semiconductor industry of 8.3%, indicating STMicroelectronics’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for STMicroelectronics’s debt level, has increased over the past 3 years from 3.2% to 17%.
What does this mean?
STMicroelectronics’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as STMicroelectronics gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research STMicroelectronics to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for STM’s future growth? Take a look at our free research report of analyst consensus for STM’s outlook.
Financial Health: Are STM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 29 September 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
