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STMicroelectronics NV (STMicroelectronics NV) 5-Year RORE % : 27.51% (As of Dec. 2023)


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What is STMicroelectronics NV 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. STMicroelectronics NV's 5-Year RORE % for the quarter that ended in Dec. 2023 was 27.51%.

The industry rank for STMicroelectronics NV's 5-Year RORE % or its related term are showing as below:

STM's 5-Year RORE % is ranked better than
70.17% of 771 companies
in the Semiconductors industry
Industry Median: 10.59 vs STM: 27.51

STMicroelectronics NV 5-Year RORE % Historical Data

The historical data trend for STMicroelectronics NV's 5-Year RORE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

STMicroelectronics NV 5-Year RORE % Chart

STMicroelectronics NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.95 27.57 22.31 30.81 27.51

STMicroelectronics NV Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.81 31.94 31.98 30.48 27.51

Competitive Comparison of STMicroelectronics NV's 5-Year RORE %

For the Semiconductors subindustry, STMicroelectronics NV's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


STMicroelectronics NV's 5-Year RORE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, STMicroelectronics NV's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where STMicroelectronics NV's 5-Year RORE % falls into.



STMicroelectronics NV 5-Year RORE % Calculation

STMicroelectronics NV's 5-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 4.46-1.15 )/( 13.16-1.128 )
=3.31/12.032
=27.51 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 5-year before.


STMicroelectronics NV  (NYSE:STM) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


STMicroelectronics NV 5-Year RORE % Related Terms

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STMicroelectronics NV (STMicroelectronics NV) Business Description

Address
39, Chemin du Champ des Filles, Plan-Les-Ouates, Geneva, CHE, 1228
A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconductors in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.