Balancing Dividends and Fundamentals: The Case of STELLANTIS NV (NYSE:STLA).

Our stock screener has singled out STELLANTIS NV (NYSE:STLA) as a promising choice for dividend investors. STLA not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Analysis for STLA

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. STLA has achieved a 7 out of 10:

• STLA has a Yearly Dividend Yield of 14.09%, which is a nice return.
• STLA's Dividend Yield is rather good when compared to the industry average which is at 4.41. 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.
• The dividend of STLA is nicely growing with an annual growth rate of 386.64%!
• STLA has paid a dividend for at least 10 years, which is a reliable track record.
• STLA pays out 34.98% of its income as dividend. This is a sustainable payout ratio.

Exploring STLA's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. STLA scores a 5 out of 10:

• With a decent Altman-Z score value of 1.89, STLA is doing good in the industry, outperforming 79.49% of the companies in the same industry.
• STLA has a better Debt to FCF ratio (13.40) than 84.62% of its industry peers.
• A Debt/Equity ratio of 0.26 indicates that STLA is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.26, STLA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.

What does the Profitability looks like for STLA

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of STLA, the assigned 9 is noteworthy for profitability:

• STLA has a Return On Assets of 6.43%. This is amongst the best in the industry. STLA outperforms 92.31% of its industry peers.
• Looking at the Return On Equity, with a value of 16.27%, STLA belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
• The Return On Invested Capital of STLA (11.18%) is better than 94.87% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for STLA is significantly above the industry average of 8.95%.
• Looking at the Profit Margin, with a value of 7.55%, STLA belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
• STLA's Profit Margin has improved in the last couple of years.
• STLA's Operating Margin of 9.84% is amongst the best of the industry. STLA outperforms 92.31% of its industry peers.
• In the last couple of years the Operating Margin of STLA has grown nicely.
• Looking at the Gross Margin, with a value of 18.11%, STLA is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
• STLA's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of STLA

Disclaimer

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.