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

Taking everything into account, STLA scores 7 out of 10 in our fundamental rating. STLA was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination! STLA also has an excellent dividend rating. With these ratings, STLA could be worth investigating further for value and dividend and quality investing!.



9

1. Profitability

1.1 Basic Checks

In the past year STLA was profitable.
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

With an excellent Return On Assets value of 9.20%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
STLA has a Return On Equity of 22.76%. This is amongst the best in the industry. STLA outperforms 92.11% of its industry peers.
With an excellent Return On Invested Capital value of 15.22%, STLA belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STLA is above the industry average of 11.91%.
The last Return On Invested Capital (15.22%) for STLA is above the 3 year average (14.80%), which is a sign of increasing profitability.
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

STLA has a better Profit Margin (9.81%) than 89.47% of its industry peers.
In the last couple of years the Profit Margin of STLA has grown nicely.
STLA has a better Operating Margin (12.19%) than 97.37% of its industry peers.
STLA's Operating Margin has improved in the last couple of years.
STLA has a better Gross Margin (20.12%) than 73.68% of its industry peers.
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.
The number of shares outstanding for STLA has been increased compared to 5 years ago.
Compared to 1 year ago, STLA has about the same debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.25 indicates that STLA is not a great score, but indicates only limited risk for bankruptcy at the moment.
STLA has a better Altman-Z score (2.25) than 76.32% of its industry peers.
STLA has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as STLA would need 2.43 years to pay back of all of its debts.
STLA has a better Debt to FCF ratio (2.43) than 94.74% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, STLA is doing good in the industry, outperforming 60.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.25
ROIC/WACC2.37
WACC6.42%

2.3 Liquidity

STLA has a Current Ratio of 1.24. This is a normal value and indicates that STLA is financially healthy and should not expect problems in meeting its short term obligations.
STLA's Current ratio of 1.24 is in line compared to the rest of the industry. STLA outperforms 42.11% of its industry peers.
STLA has a Quick Ratio of 1.24. This is a bad value and indicates that STLA is not financially healthy enough and could expect problems in meeting its short term obligations.
STLA has a worse Quick ratio (0.95) than 60.53% of its industry peers.
The current and quick ratio evaluation for STLA is rather negative, while it does have 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.
The Earnings Per Share has been growing by 31.54% on average over the past years. This is a very strong growth
STLA shows a decrease in Revenue. In the last year, the revenue decreased by -2.02%.
Measured over the past years, STLA shows a small growth in Revenue. The Revenue has been growing by 2.93% on average per year.
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

The Earnings Per Share is expected to grow by 15.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.25% on average over the next years. This is quite good.
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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9

4. Valuation

4.1 Price/Earnings Ratio

STLA is valuated cheaply with a Price/Earnings ratio of 7.09.
Compared to the rest of the industry, the Price/Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 94.74% of the companies listed in the same industry.
STLA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.42.
A Price/Forward Earnings ratio of 5.04 indicates a rather cheap valuation of STLA.
STLA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 97.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, STLA is valued rather cheaply.
Industry RankSector Rank
PE 7.09
Fwd PE 5.04

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STLA is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STLA is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.48
EV/EBITDA 0.86

4.3 Compensation for Growth

The excellent profitability rating of STLA may justify a higher PE ratio.
A more expensive valuation may be justified as STLA's earnings are expected to grow with 27.09% in the coming years.
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

STLA has a Yearly Dividend Yield of 7.88%, which is a nice return.
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.
STLA's Dividend Yield is rather good when compared to the industry average which is at 3.02. STLA pays more dividend than 100.00% of the companies 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

The dividend of STLA is nicely growing with an annual growth rate of 386.64%!
STLA has been paying a dividend for over 5 years, so it has already some track record.
STLA has decreased its dividend 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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