Summary

STMicroelectronics is one of Europe’s largest semiconductor companies with a very diversified portfolio of products.

However, the company has failed to build a lead in any of its segments and faces huge competition from its peers.

In addition, the company has to incur high CapEx and R&D expenditure to maintain its many product lines.

With Europe’s poor economic health even before the COVID-19 pandemic, it looks like this might be the year we see negative free cash flow for the company.