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Is this Large Market Cap Stock target price reasonable for STMicroelectronics NV (NYSE:STM)?

The company in question is, STMicroelectronics NV (NYSE:STM) currently with a stock price of 8.01 (1.20% today). The market cap for STMicroelectronics NV is 7115.2, and is in the sector Technology, and Semiconductor – Broad Line industry. The target price for STMicroelectronics NV is 7.33. Currently STMicroelectronics NV is trading with a P/E of 94.17, and a forward P/E of 18.57. Average volume for STMicroelectronics NV is 2154.01 and so far today it is 3682860.

Performance in the last year for STMicroelectronics NV has been 14.90%. For EPS growth, STMicroelectronics NV has seen a growth of -18.20%, and is looking to grow in the next year to 109.85%. More long term stats show that EPS growth has been -33.70% over the last five years and could be 49.00% for the next five years. STMicroelectronics NV has seen sales growth quarter over quarter at -3.20%, with EPS growth quarter over quarter at -35.10%. The 20-day simple moving average is 3.88%, with the 200-day simple moving average coming to 27.99%.

Since the IPO date for STMicroelectronics NV on the 12/08/1994, STMicroelectronics NV has seen performance year to date to be 23.09%. With STMicroelectronics NV trading at 8.01, the dividend yield is 3.03%, and the EPS is 0.08.

So could STMicroelectronics NV, be undervalued? Well as said before P/E is 94.17. The PEG is 1.92, P/S is 1.05 and the P/B is at 1.55. The P/cash is 3.51, with P/free cash flow at *TBA.

STMicroelectronics NV ability to deal with debt shows that the current ratio is 2.9, and the quick ratio is 2.1. This is with long term debt/equity at 0.32, and total debt/equity at 0.36.

In terms of margins, STMicroelectronics NV has a gross margin of 33.90%, an operating margin of 1.60% and a profit margin of 1.10%.Payout ratio for STMicroelectronics NV is 427.60%. Return on assets come to 0.90% with return on investment coming to 2.10%.

Insider ownership for STMicroelectronics NV, is at 28.40% and institutional ownership comes to 2.10%. Outstanding shares are at 899.52. While shares float is 647.43. The float short is currently 0.36%, and short ratio is 1.08.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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