STMicroelectronics NV (STM) Stock Analysis

Verdict: AVOID

Inventory corrections in industrial markets and guidance cuts have broken the growth narrative, making the high TTM valuation untenable.

Investment score: 38/100

Analysis as of 2026-07-24

Is STMicroelectronics NV stock worth reviewing? The TradeMates thesis

The TradeMates model rates STM as AVOID due to a toxic combination of decelerating revenue (-11%), collapsing net margins (2.53% vs historical 20%+), and negative free cash flow. The 18% earnings-day crash confirms the market's rejection of management's 'recovery' timeline.

7-factor investment score

Valuation: 35/100 (weight 20%)
Financial Health: 30/100 (weight 15%)
Technical Momentum: 20/100 (weight 15%)
Earnings Quality: 25/100 (weight 15%)
Insider Sentiment: 50/100 (weight 10%)
Analyst Consensus: 60/100 (weight 10%)
Risk-Adjusted Return: 40/100 (weight 15%)

STMicroelectronics NV opportunities and risks

What speaks for STM

Silicon Carbide (SiC) Dominance

What speaks against STM

Prolonged Cyclical Downturn

Peers and competitors

NXPI
STMPA.PA

Trailing-twelve-month ratios
Ticker	P/E	P/S	EV/EBITDA	Gross margin	Net margin	FCF yield
STM	102.9x	3.6x	21.6x	34.3%	3.5%	0.9%
NXPI	26.4x	5.5x	16.7x	54.9%	21.0%	4.2%
Peer median	26.4x	5.5x	16.7x	54.9%	21.0%	4.2%

Frequently asked questions about STMicroelectronics NV (STM)

Is STM stock a good investment?

The TradeMates model rates STMicroelectronics NV as AVOID with an investment score of 38/100. The TradeMates model rates STM as AVOID due to a toxic combination of decelerating revenue (-11%), collapsing net margins (2.53% vs historical 20%+), and negative free cash flow. The 18% earnings-day crash confirms the market's rejection of management's 'recovery' timeline. This is algorithmic model output, not personal investment advice.

Is STM stock a buy?

The TradeMates model verdict for STM is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.