Why STELLANTIS NV (NYSE:STLA) should be investigated by quality investors.

In this article we will dive into STELLANTIS NV (NYSE:STLA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STELLANTIS NV showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:STLA highlighted

• Over the past 5 years, STELLANTIS NV has experienced impressive revenue growth, with 7.15% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 68.67%, STELLANTIS NV showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• STELLANTIS NV maintains a healthy Debt/Free Cash Flow Ratio of 2.11, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• STELLANTIS NV exhibits impressive Profit Quality (5-year) with a 457.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• STELLANTIS NV has demonstrated consistent growth in EBIT over the past 5 years, with a strong 29.97%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• STELLANTIS NV demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

STLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. STLA scores excellent on profitability, but there are some minor concerns on its financial health. STLA may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, STLA could be worth investigating further for value investing!.

Check the latest full fundamental report of STLA for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.