Wednesday, April 17, 2013

Analysis of STMicroelectronics

Producer of low power processors

Company: STMicroelectronics

Business: Low power processors for cars, alarm clocks and other similar applications. In comparison to ARM, Intel and Qualcomm moving more in a low value market so not fully valid to be compared with them.

Active: Globally present

P/E: -46.0

Share price from closing day 11/4-13.

 
The P/E is... due to the loss messed up. in the last 5 years twice they have gone serious minus. therefore I can´t even be bothered to try to justify an average earnings. The P/B value is also a little high. The book to debt value is excellent though but more of these years like the last one and their fund will soon be eaten up. they pay a far to high dividend which I guess is only to try to please the unhappy shareholders. If next year does not significantly improve they will probably be forced to decrease or cut dividends. I did not like how they represented the number of shares in the company. Something was very odd and it was unclear to me how many it really was. There should not even be a doubt or question mark concerning how many shares the company has. Only happy thing is that the very final quarter showed a nice profit. If the next two quarter continue like that then maybe this could be an interesting company.

Conclusion: It is a no go on this one!

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