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

Overall STLA gets a fundamental rating of 7 out of 10. We evaluated STLA against 38 industry peers in the Automobiles industry. While STLA has a great profitability rating, there are some minor concerns on its financial health. 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 could make STLA a good candidate for value and dividend 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

STLA's Return On Assets of 9.20% is amongst the best of the industry. STLA outperforms 89.19% of its industry peers.
The Return On Equity of STLA (22.76%) is better than 91.89% of its industry peers.
STLA's Return On Invested Capital of 15.22% is amongst the best of the industry. STLA outperforms 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLA is above the industry average of 12.33%.
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

With an excellent Profit Margin value of 9.81%, STLA belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
STLA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.19%, STLA belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
STLA's Operating Margin has improved in the last couple of years.
The Gross Margin of STLA (20.12%) is better than 72.97% 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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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLA is creating value.
Compared to 1 year ago, STLA has less shares outstanding
STLA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STLA has about the same debt to assets ratio.

2.2 Solvency

STLA has an Altman-Z score of 2.28. 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 2.28, STLA is doing good in the industry, outperforming 70.27% 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's Debt to FCF ratio of 2.43 is amongst the best of the industry. STLA outperforms 94.59% 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.
The Debt to Equity ratio of STLA (0.24) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.28
ROIC/WACC2.28
WACC6.68%

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.
With a Current ratio value of 1.24, STLA is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.95, STLA is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
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 growth Q2Q-9.68%
Revenue 1Y (TTM)-2.02%
Revenue growth 3Y0.75%
Revenue growth 5Y2.93%
Revenue growth 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 16.44% on average per year.
The Revenue is expected to grow by 11.90% 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 5Y16.44%
Revenue Next Year25.31%
Revenue Next 2Y17.08%
Revenue Next 3Y17.94%
Revenue Next 5Y11.9%

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

The Price/Earnings ratio is 7.79, which indicates a rather cheap valuation of STLA.
STLA's Price/Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 89.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of STLA to the average of the S&P500 Index (28.60), we can say STLA is valued rather cheaply.
A Price/Forward Earnings ratio of 5.55 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 97.30% of the companies in the same industry.
STLA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
Industry RankSector Rank
PE 7.79
Fwd PE 5.55

4.2 Price Multiples

100.00% of the companies in the same industry are more expensive than STLA, based on the Enterprise Value to EBITDA ratio.
97.30% of the companies in the same industry are more expensive than STLA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.93
EV/EBITDA 1.04

4.3 Compensation for Growth

STLA has an outstanding profitability rating, which 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)0.25
EPS Next 2Y18.5%
EPS Next 3Y27.09%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.32%, STLA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.86, STLA pays a better dividend. On top of this STLA pays more dividend than 100.00% of the companies listed in the same industry.
STLA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 7.32%

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

STLA pays out 22.63% of its income as dividend. This is a sustainable payout ratio.
The dividend of STLA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.63%
EPS Next 2Y18.5%
EPS Next 3Y27.09%

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