Stock fact sheet · data as of
STMicroelectronics N.V. (STM): fair value, margin of safety and Wheel Score
Ticker symbol STM · Technology · Semiconductors · Switzerland · ADR · Blend
STM is an American depositary share (ADR): the US listing of STMicroelectronics N.V., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is STM undervalued?
At 45.60 (close of 5 Nov 2026), STM trades 206% over the GLS average fair value of 14.88, with 0 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 9 models disagree widely: GLS Growth gives 1.77 while 10 Cap gives 34.60. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for STM, so the nightly engine files it under Blend (value score 23, growth score 13, out of 100).
Nine valuation models for STM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 6.29 | -86% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 16.52 | -64% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 34.53 | -24% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 15.09 | -67% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.77 | -96% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 34.60 | -24% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 13.20 | -71% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.21 | -89% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 6.71 | -85% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 5.25 | -88% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 74.07 | +62% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health STM scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.1 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 0.8%, ROE 0.9%, ROA 0.7% - with debt at 0.12 times equity and a free-cash-flow yield of 1.5%.
The dividend yield is 0.78% with a payout ratio of 47% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Product 98%, Service 2%, Product and Service, Other 0% (fiscal year FY2025).
Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 0.8% |
|---|---|---|---|
| GLS Moat | 6.1 / 10 | ROE | 0.9% |
| Debt / equity | 0.12 | ROA | 0.7% |
| Free-cash-flow yield | 1.5% | Payout ratio | 47% |
| Institutions | 2 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 42: Weak
STM scores 42 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 206% above our fair value, and the parts are thin too - value weak, premium strong, moat good, health good, red flags weak, option trading strong, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 174,583 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 15.6M shares a day on a market cap of $40.8B, with a beta of 1.52 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 206% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 206% above fair value | |
| Premium | Strong | implied volatility 57% | |
| Moat | Good | moat 6.1/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Weak | Red Flags score 65/100 | |
| Option trading | Strong | 41,966 contracts a day, 174,583 open interest | |
| Stability | Good | beta 1.52, $40.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today. The next ex-dividend date is 15 Dec 2026 (0.0900 per share).
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to STMicroelectronics N.V. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MCHP Microchip Technology Incorporated | 75.34 | 22.56 | -234% | 41Weak | $40.9B |
| UMC United Microelectronics Corporation | 16.06 | 13.65 | -18% | 43Weak | $40.1B |
| TER Teradyne, Inc. | 250.99 | 145.98 | -72% | 44Weak | $39.2B |
| ALAB Astera Labs, Inc. Common Stock | 223.27 | 79.52 | -181% | 29Weak | $38.7B |
| ON ON Semiconductor Corporation | 71.24 | 48.86 | -46% | 42Weak | $27.7B |
| MPWR Monolithic Power Systems, Inc. | 1,261.08 | 467.50 | -170% | 41Weak | $61.5B |
| TEL TE Connectivity plc | 220.22 | 216.76 | -2% | 48Weak | $63.8B |
| CRDO Credo Technology Group Holding Ltd | 136.50 | 83.65 | -63% | 24Weak | $25.7B |
| NXPI NXP Semiconductors N.V. | 265.01 | 178.55 | -48% | 45Weak | $66.8B |
| Q Qnity Electronics, Inc. | 118.78 | 44.98 | -164% | 40Weak | $24.8B |
| GFS GLOBALFOUNDRIES Inc. | 40.34 | 26.95 | -50% | 39Weak | $22.1B |
| ENTG Entegris, Inc. | 142.87 | 55.00 | -160% | 39Weak | $21.8B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about STM
Is STM undervalued right now?
No: at 45.60 the stock trades 206% above the GLS average fair value of 14.88 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of STM and what does it mean?
STM scores 42 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for STM?
14.88 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does STMicroelectronics N.V. report earnings next?
The next earnings report is due on 28 Jan 2027, 84 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does STM have listed options, and how liquid are they?
Yes. The nightly snapshot found 528 listed contracts with 174,583 open interest across all expiries and implied volatility of 57% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is STM an ADR?
Yes. STM is an American depositary share (ADR): the US listing of STMicroelectronics N.V., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.