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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. STLA also has an excellent dividend rating. With these ratings, STLA could be worth investigating further for value and dividend investing!.



9

1. Profitability

1.1 Basic Checks

STLA had positive earnings in the past year.
In the past year STLA had a positive cash flow from operations.
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's Return On Assets of 9.20% is amongst the best of the industry. STLA outperforms 89.19% of its industry peers.
Looking at the Return On Equity, with a value of 22.76%, STLA belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
STLA has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. STLA outperforms 91.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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

Looking at the Profit Margin, with a value of 9.81%, STLA belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
In the last couple of years the Profit Margin of STLA has grown nicely.
STLA's Operating Margin of 12.19% is amongst the best of the industry. STLA outperforms 94.59% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
With a decent Gross Margin value of 20.12%, STLA is doing good in the industry, outperforming 72.97% of the companies in the same industry.
In the last couple of years the Gross Margin of STLA has grown nicely.
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

STLA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, STLA has less shares outstanding
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 2.28. 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.
Looking at the Altman-Z score, with a value of 2.28, STLA is in the better half of 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.
STLA has a better Debt to FCF ratio (2.43) than 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.
STLA has a Debt to Equity ratio (0.24) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.28
ROIC/WACC2.34
WACC6.51%

2.3 Liquidity

A Current Ratio of 1.24 indicates that STLA should not have too much problems paying its short term obligations.
The Current ratio of STLA (1.24) is worse than 62.16% 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 Quick ratio of 0.95. This is in the lower half of the industry: STLA underperforms 64.86% of its industry peers.
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.
Measured over the past years, STLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.54% on average per year.
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 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

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

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

The Price/Earnings ratio is 7.76, which indicates a rather cheap valuation of STLA.
Compared to the rest of the industry, the Price/Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 89.19% 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 28.60.
STLA is valuated cheaply with a Price/Forward Earnings ratio of 5.53.
Based on the Price/Forward Earnings ratio, STLA is valued cheaper than 97.30% of the companies in the same industry.
STLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.76
Fwd PE 5.53

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.
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 4.92
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

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.
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.
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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