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 38 industry peers in the Automobiles industry. While STLA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STLA may be a bit undervalued, certainly considering the very reasonable score on growth Finally STLA also has an excellent dividend rating. These ratings could make STLA a good candidate for value and dividend investing.



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1. Profitability

1.1 Basic Checks

STLA had positive earnings in the past year.
STLA had a positive operating cash flow in the past year.
In the past 5 years STLA has always been profitable.
STLA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

STLA has a better Return On Assets (9.20%) than 89.19% of its industry peers.
With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
STLA has a better Return On Invested Capital (15.22%) than 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

STLA's Profit Margin of 9.81% is amongst the best of the industry. STLA outperforms 89.19% of its industry peers.
In the last couple of years the Profit Margin of STLA has grown nicely.
STLA has a Operating Margin of 12.19%. This is amongst the best in the industry. STLA outperforms 94.59% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
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%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STLA 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.
STLA has about the same debt/assets ratio as last year.

2.2 Solvency

STLA has an Altman-Z score of 2.27. 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 2.27, STLA is doing good in the industry, outperforming 70.27% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.43, STLA belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
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 Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.27
ROIC/WACC2.35
WACC6.48%

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 40.54% 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.
With a Quick ratio value of 0.95, STLA is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.95

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.
Looking at the last year, STLA shows a decrease in Revenue. The Revenue has decreased by -2.02% in the last year.
The Revenue has been growing slightly by 2.93% on average over the past years.
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 16.44% on average over the next years. This is quite good.
STLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.90% yearly.
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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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.69, the valuation of STLA can be described as very cheap.
91.89% of the companies in the same industry are more expensive than STLA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.24. STLA is valued rather cheaply when compared to this.
STLA is valuated cheaply with a Price/Forward Earnings ratio of 5.48.
Based on the Price/Forward Earnings ratio, STLA is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, STLA is valued rather cheaply.
Industry RankSector Rank
PE 7.69
Fwd PE 5.48

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.
Based on the Price/Free Cash Flow ratio, STLA is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.87
EV/EBITDA 0.98

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)0.24
EPS Next 2Y18.5%
EPS Next 3Y27.09%

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5. Dividend

5.1 Amount

STLA has a Yearly Dividend Yield of 7.61%, which is a nice return.
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.
Compared to an average S&P500 Dividend Yield of 2.32, STLA pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.61%

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

STLA pays out 22.63% of its income as dividend. This is a 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%