Stmicroelectronics Nv Adr Stock Beneish M Score

STM Stock  USD 25.57  0.18  0.70%   
This module uses fundamental data of STMicroelectronics to approximate the value of its Beneish M Score. STMicroelectronics M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out STMicroelectronics Piotroski F Score and STMicroelectronics Altman Z Score analysis.
  
At this time, STMicroelectronics' Debt Equity Ratio is very stable compared to the past year. As of the 27th of November 2024, Debt Ratio is likely to grow to 0.19, while Net Debt is likely to drop (51.5 M). At this time, STMicroelectronics' Inventory Turnover is very stable compared to the past year. As of the 27th of November 2024, Net Income Per Share is likely to grow to 4.89, while Dividend Yield is likely to drop 0.
At this time, it appears that STMicroelectronics NV ADR is an unlikely manipulator. The earnings manipulation may begin if STMicroelectronics' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by STMicroelectronics executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of STMicroelectronics' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.56
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.2

Focus
Asset Quality

1.42

Focus
Expense Coverage

1.4

Focus
Gross Margin Strengs

0.86

Focus
Accruals Factor

1.4

Focus
Depreciation Resistance

0.98

Focus
Net Sales Growth

0.54

Focus
Financial Leverage Condition

1.25

Focus

STMicroelectronics Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if STMicroelectronics' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.7 B2.7 B
Way Down
Slightly volatile
Total Revenue9.3 B17.3 B
Way Down
Slightly volatile
Total Assets13.3 B24.5 B
Way Down
Slightly volatile
Total Current Assets6.3 B11.8 B
Way Down
Slightly volatile
Non Current Assets TotalB12.6 B
Way Down
Slightly volatile
Property Plant Equipment3.8 B7.4 B
Way Down
Slightly volatile
Depreciation And Amortization831 M1.6 B
Way Down
Pretty Stable
Selling General Administrative1.3 B1.6 B
Way Down
Pretty Stable
Total Current Liabilities2.6 B3.7 B
Way Down
Slightly volatile
Non Current Liabilities Total2.6 B3.9 B
Way Down
Slightly volatile
Short Term Debt371.7 M275 M
Significantly Up
Very volatile
Long Term Debt1.5 B2.7 B
Way Down
Slightly volatile
Total Cash From Operating Activities7.1 BB
Fairly Up
Slightly volatile
Short Term InvestmentsB2.9 B
Sufficiently Up
Slightly volatile
Long Term Investments44.4 M53 M
Fairly Down
Slightly volatile
Gross Profit Margin0.410.4794
Fairly Down
Pretty Stable

STMicroelectronics NV ADR Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between STMicroelectronics' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards STMicroelectronics in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find STMicroelectronics' degree of accounting gimmicks and manipulations.

About STMicroelectronics Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

8.38 Billion

At this time, STMicroelectronics' Other Operating Expenses is very stable compared to the past year.

STMicroelectronics Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as STMicroelectronics. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables1.4B1.8B2.2B2.6B2.7B1.7B
Total Revenue9.6B10.2B12.8B16.1B17.3B9.3B
Total Assets11.9B15.3B16.4B21.0B24.5B13.3B
Total Current Assets6.3B7.7B7.8B9.8B11.8B6.3B
Net Debt(525M)(389M)(691M)(686M)(49M)(51.5M)
Short Term Debt173M796M143M885M275M371.7M
Long Term Debt1.9B1.8B2.4B2.5B2.7B1.5B
Operating Income359M1.2B2.5B4.5B4.6B4.8B
Investments(1.2B)(2.0B)(1.5B)(924M)(5.1B)(4.8B)

STMicroelectronics ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, STMicroelectronics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to STMicroelectronics' managers, analysts, and investors.
Environmental
Governance
Social

About STMicroelectronics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze STMicroelectronics NV ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of STMicroelectronics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of STMicroelectronics NV ADR based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether STMicroelectronics NV ADR is a strong investment it is important to analyze STMicroelectronics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact STMicroelectronics' future performance. For an informed investment choice regarding STMicroelectronics Stock, refer to the following important reports:
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of STMicroelectronics. If investors know STMicroelectronics will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about STMicroelectronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.68)
Dividend Share
0.36
Earnings Share
2.43
Revenue Per Share
15.77
Quarterly Revenue Growth
(0.27)
The market value of STMicroelectronics NV ADR is measured differently than its book value, which is the value of STMicroelectronics that is recorded on the company's balance sheet. Investors also form their own opinion of STMicroelectronics' value that differs from its market value or its book value, called intrinsic value, which is STMicroelectronics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because STMicroelectronics' market value can be influenced by many factors that don't directly affect STMicroelectronics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between STMicroelectronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if STMicroelectronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, STMicroelectronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.