(SGM) STMicroelectronics N.V - Ratings and Ratios

STMicroelectronics N.V. (XETTRA:SGM) is a global leader in the design, development, manufacture, and sale of semiconductor products. The company operates across Europe, the Middle East, Africa, the Americas, and Asia Pacific, serving diverse markets including automotive, industrial, personal electronics, communications equipment, and computers/peripherals. Founded in 1987 and headquartered in Schiphol, the Netherlands, STMicroelectronics has established itself as a key player in the semiconductor industry.

The company’s business is organized into four primary segments: Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Microcontrollers (MCU); and Digital ICs and RF Products (D&RF). Its product portfolio includes industrial ASICs and ASSPs, power management solutions, custom analog ICs, wireless charging solutions, and a wide range of sensors such as accelerometers, gyroscopes, magnetic sensors, and biosensors. Additionally, the company offers advanced solutions like machine learning-enabled smart sensors, optical sensing solutions, and RF communications ASICs.

STMicroelectronics also specializes in power management products, including silicon and silicon carbide MOSFETs, IGBTs, thyristors, and rectifiers. Its microcontroller offerings include general-purpose and secure MCUs, NFC solutions, and automotive-focused MCUs. The company’s RF and infotainment solutions are integral to advanced driver assistance systems (ADAS) and next-generation automotive technologies.

From a financial perspective, STMicroelectronics has a market capitalization of 15.67 billion EUR, with a trailing P/E ratio of 11.93 and a forward P/E of 24.39, indicating expectations for future earnings growth. The company’s price-to-book ratio stands at 1.01, suggesting its stock is fairly valued relative to book value. The return on equity (RoE) is 8.93%, reflecting moderate profitability.

Technically, the stock’s short-term trend appears bearish, with the 20-day SMA (18.93) above the current price (18.11). The 50-day SMA (21.67) and 200-day SMA (25.19) further confirm the downtrend. The ATR of 0.81 indicates relatively low volatility. Over the next three months, the stock is likely to face resistance at 21.67 (50-day SMA) and support at 18.11 (current price). If the price breaks below 18.11, it could test the next support level at 17.30. Conversely, a breakout above 21.67 could signal a trend reversal.

Based on fundamental analysis, the company’s focus on automotive and industrial markets, coupled with its strong portfolio of power management and sensing solutions, positions it well for long-term growth. However, the forward P/E of 24.39 suggests high expectations for future performance, which may pose a risk if earnings fail to meet projections.