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STMicroelectronics N.V. earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score75 / 100 · grade B · rank 162 of 1027
STMicroelectronics N.V. (STM) scores 75 of 100 for earnings quality, grade B: rank 162 of 1027 companies and 3 of 21 in other. It loses the most points on Montier C-score 3 of 6 checks failed, discretionary accruals of -6.0% of assets (modified Jones), larger than most, accruals of -8.0% of assets, lower than 77% of companies (profit backed by cash). It earns full or near-full marks for Beneish M-score -2.65: clean (below −2.22), Dechow F-score 0.25 (normal), profit about as variable as cash flow (smoothness 1.13).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -8.0% of assets, lower than 77% of companies (profit backed by cash) | 17 | 22 |
| Beneish M-score | Beneish M-score -2.65: clean (below −2.22) | 17 | 17 |
| Dechow F-score | Dechow F-score 0.25 (normal) | 17 | 17 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 8 | 17 |
| Discretionary accruals | discretionary accruals of -6.0% of assets (modified Jones), larger than most | 3 | 11 |
| Piotroski F-score | Piotroski F-score 6 of 9 | 7 | 11 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.13) | 6 | 6 |
How the score is built
Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.
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Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.