STMicroelectronics N.V. (STM): one to watch?

Watch, not buy yet — the crash was a guidance-miss/sector panic, not a broken business, but thin profit margins make it risky until recovery is confirmed.

👀 WATCH Fundamentals66/100

Fell 20% in 8 trading day(s) — now $52.39

Why STM dropped

STM actually beat Q2 2026 estimates (revenue up 26% YoY, EPS beat consensus), but its Q3 revenue guidance of $3.70B came in slightly below what Wall Street wanted, and after weeks of AI-spending-fear-driven sector selling, that miss triggered a sharp sell-the-news crash — this was compounded by a large convertible bond issuance ($1.5B) that likely spooked investors about dilution.

Fwd P/E 20.5Op margin 6.9%Rev growth 26.1%Debt/equity 23.4%Analyst upside 36.5%

How this scored 66/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 3.6%

✅ Generates cash Free cash flow $91M

✅ Not drowning in debt Debt/equity 23.4% (limit 200%)

✅ Can pay its bills Current ratio 2.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 4/25

Operating margin 6.9% 2/9

Net profit margin 3.6% 1/8

Return on equity 2.7% 0/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 26.1% 9/9

Earnings growth unknown 2/8

Expected profit change 400.0% 8/8

Value Is it cheap right now? 18/25

Forward P/E 20.5 6/10

PEG ratio 0.4 8/8

Analyst target upside 36.5% 4/7

Balance sheet Will it survive? 25/25

Debt / equity 23.4% 10/10

Current ratio 2.8 8/8

Free cash flow $91M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-03. Research only — not financial advice.