Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


STELLANTIS NV

New York Stock Exchange, Inc. / Consumer Discretionary / Automobiles

Fundamental Rating

7

STLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 industry peers in the Automobiles industry. STLA gets an excellent profitability rating and is at the same time showing great financial health properties. STLA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally STLA also has an excellent dividend rating. These ratings would make STLA suitable for value and dividend and quality investing!



9

1. Profitability

1.1 Basic Checks

STLA had positive earnings in the past year.
In the past year STLA had a positive cash flow from operations.
Each year in the past 5 years STLA has been profitable.
In the past 5 years STLA always reported a positive cash flow from operatings.

1.2 Ratios

STLA has a better Return On Assets (9.20%) than 92.11% of its industry peers.
With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
STLA has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. STLA outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLA is above the industry average of 11.91%.
The 3 year average ROIC (14.80%) for STLA is below the current ROIC(15.22%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.2%
ROE 22.76%
ROIC 15.22%
ROA(3y)8.83%
ROA(5y)6.65%
ROE(3y)23.83%
ROE(5y)18.96%
ROIC(3y)14.8%
ROIC(5y)11.96%

1.3 Margins

The Profit Margin of STLA (9.81%) is better than 89.47% of its industry peers.
STLA's Profit Margin has improved in the last couple of years.
The Operating Margin of STLA (12.19%) is better than 97.37% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
With a decent Gross Margin value of 20.12%, STLA is doing good in the industry, outperforming 73.68% of the companies in the same industry.
STLA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.19%
PM (TTM) 9.81%
GM 20.12%
OM growth 3Y39.67%
OM growth 5Y17.83%
PM growth 3Y564.36%
PM growth 5Y24.59%
GM growth 3Y14.45%
GM growth 5Y7.61%

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7

2. Health

2.1 Basic Checks

STLA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STLA has less shares outstanding than it did 1 year ago.
STLA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STLA has remained at the same level compared to a year ago.

2.2 Solvency

STLA has an Altman-Z score of 2.25. This is not the best score and indicates that STLA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.25, STLA is doing good in the industry, outperforming 76.32% of the companies in the same industry.
The Debt to FCF ratio of STLA is 2.43, which is a good value as it means it would take STLA, 2.43 years of fcf income to pay off all of its debts.
STLA has a better Debt to FCF ratio (2.43) than 94.74% of its industry peers.
STLA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
STLA has a better Debt to Equity ratio (0.24) than 60.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.25
ROIC/WACC2.3
WACC6.63%

2.3 Liquidity

A Current Ratio of 1.24 indicates that STLA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, STLA is in line with its industry, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that STLA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, STLA is doing worse than 60.53% of the companies in the same industry.
STLA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.95

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5

3. Growth

3.1 Past

The earnings per share for STLA have decreased strongly by -16.56% in the last year.
STLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.54% yearly.
STLA shows a decrease in Revenue. In the last year, the revenue decreased by -2.02%.
STLA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.93% yearly.
EPS 1Y (TTM)-16.56%
EPS 3Y32%
EPS 5Y31.54%
EPS Q2Q%-9.68%
Revenue 1Y (TTM)-2.02%
Revenue growth 3Y0.75%
Revenue growth 5Y2.93%
Sales Q2Q%-49.73%

3.2 Future

Based on estimates for the next years, STLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.24% on average per year.
Based on estimates for the next years, STLA will show a quite strong growth in Revenue. The Revenue will grow by 11.25% on average per year.
EPS Next Y-62.6%
EPS Next 2Y18.5%
EPS Next 3Y27.09%
EPS Next 5Y15.24%
Revenue Next Year25.31%
Revenue Next 2Y17.08%
Revenue Next 3Y17.94%
Revenue Next 5Y11.25%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.09, the valuation of STLA can be described as very cheap.
Based on the Price/Earnings ratio, STLA is valued cheaper than 94.74% of the companies in the same industry.
STLA is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.04, the valuation of STLA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 97.37% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. STLA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.09
Fwd PE 5.04

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 100.00% of the companies listed in the same industry.
STLA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STLA is cheaper than 97.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.48
EV/EBITDA 0.86

4.3 Compensation for Growth

STLA has an outstanding profitability rating, which may justify a higher PE ratio.
STLA's earnings are expected to grow with 27.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y18.5%
EPS Next 3Y27.09%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.88%, STLA is a good candidate for dividend investing.
The stock price of STLA dropped by -29.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.00, STLA pays a better dividend. On top of this STLA pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, STLA pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.88%

5.2 History

On average, the dividend of STLA grows each year by 386.64%, which is quite nice.
STLA has been paying a dividend for over 5 years, so it has already some track record.
The dividend of STLA decreased in the last 3 years.
Dividend Growth(5Y)386.64%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

22.63% of the earnings are spent on dividend by STLA. This is a low number and sustainable payout ratio.
STLA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.63%
EPS Next 2Y18.5%
EPS Next 3Y27.09%

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