The ACCE composite score for $STM (STMicroelectronics N.V.) dropped 14 points, moving from 56 to 42 out of 100. That is a meaningful single-step decline. A move of that size typically reflects deterioration across more than one subscore — growth, value, quality, or momentum — rather than a single isolated data point shifting.
The live data gives us a clear picture of where the pressure is coming from.
Earnings are the headline problem. Year-over-year earnings fell 33.3%, even as revenue grew 23.0%. That combination — top-line growth alongside a sharp earnings decline — points to margin compression. When revenue rises but profits fall by a third, cost structures or pricing dynamics are working against the business. This kind of divergence hits both the quality subscore (profitability metrics weaken) and the growth subscore (earnings growth is a core input).
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Valuation is complicated. The trailing P/E sits at 434.1, which reflects how far earnings have fallen relative to the share price of $69.56. That number is not a sign of optimism priced in — it is a sign that trailing earnings have collapsed. The forward P/E of 31.1 suggests the market expects a significant earnings recovery, but forward estimates carry their own uncertainty. A wide gap between trailing and forward P/E can weigh on the value subscore, since screens that use trailing multiples will flag the stock as expensive.
The analyst target adds context. The consensus analyst target sits at $56.30, which is below the current price of $69.56. When a stock trades above its analyst consensus target, that gap can pressure the momentum and value subscores simultaneously.
Dividend yield is minimal. At 0.5%, the dividend provides little cushion and does not meaningfully offset the other headwinds in the scoring model.
What it means
A score of 42 places $STM in cautious territory on the ACCE scale. The score does not predict a specific price direction, but it does reflect that the current data profile — shrinking earnings, a stretched trailing multiple, and a share price above analyst targets — presents more risk flags than the previous score of 56 implied.
The market cap of $61.82B means $STM is a large, liquid name, and the revenue growth of 23.0% shows the business is not shrinking. But profitability is the missing piece right now. Until earnings trajectory stabilises or improves, the composite score is likely to stay under pressure.
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