Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


STELLANTIS NV

Euronext Paris - Matif / Consumer Discretionary / Automobiles

Fundamental Rating

7

Taking everything into account, STLAP scores 7 out of 10 in our fundamental rating. STLAP was compared to 30 industry peers in the Automobiles industry. STLAP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STLAP may be a bit undervalued, certainly considering the very reasonable score on growth Finally STLAP also has an excellent dividend rating. With these ratings, STLAP could be worth investigating further for value and dividend and quality investing!.



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1. Profitability

1.1 Basic Checks

STLAP had positive earnings in the past year.
STLAP had a positive operating cash flow in the past year.
STLAP had positive earnings in each of the past 5 years.
In the past 5 years STLAP always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 9.20%, STLAP is doing good in the industry, outperforming 72.41% of the companies in the same industry.
STLAP has a better Return On Equity (22.76%) than 82.76% of its industry peers.
STLAP has a Return On Invested Capital of 15.22%. This is in the better half of the industry: STLAP outperforms 79.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLAP is above the industry average of 9.98%.
The last Return On Invested Capital (15.22%) for STLAP 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

The Profit Margin of STLAP (9.81%) is better than 72.41% of its industry peers.
In the last couple of years the Profit Margin of STLAP has grown nicely.
Looking at the Operating Margin, with a value of 12.19%, STLAP belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
STLAP's Operating Margin has improved in the last couple of years.
STLAP's Gross Margin of 20.12% is in line compared to the rest of the industry. STLAP outperforms 48.28% of its industry peers.
In the last couple of years the Gross Margin of STLAP 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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7

2. Health

2.1 Basic Checks

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

2.2 Solvency

An Altman-Z score of 2.27 indicates that STLAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.27, STLAP is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
STLAP has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as STLAP would need 2.43 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.43, STLAP belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that STLAP is not too dependend on debt financing.
STLAP's Debt to Equity ratio of 0.24 is amongst the best of the industry. STLAP outperforms 82.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.27
ROIC/WACC2.31
WACC6.59%

2.3 Liquidity

STLAP has a Current Ratio of 1.24. This is a normal value and indicates that STLAP is financially healthy and should not expect problems in meeting its short term obligations.
STLAP's Current ratio of 1.24 is in line compared to the rest of the industry. STLAP outperforms 58.62% of its industry peers.
A Quick Ratio of 0.95 indicates that STLAP may have some problems paying its short term obligations.
STLAP has a Quick ratio (0.95) which is in line with its industry peers.
STLAP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
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 STLAP have decreased strongly by -16.56% in the last year.
STLAP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.54% yearly.
STLAP shows a decrease in Revenue. In the last year, the revenue decreased by -2.02%.
Measured over the past years, STLAP shows a small growth in Revenue. The Revenue has been growing by 2.93% on average per year.
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 15.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.30% 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 5Y15.4%
Revenue Next Year25.31%
Revenue Next 2Y17.08%
Revenue Next 3Y17.94%
Revenue Next 5Y11.3%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.57, which indicates a rather cheap valuation of STLAP.
STLAP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of STLAP to the average of the S&P500 Index (28.05), we can say STLAP is valued rather cheaply.
STLAP is valuated cheaply with a Price/Forward Earnings ratio of 5.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLAP indicates a somewhat cheap valuation: STLAP is cheaper than 62.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, STLAP is valued rather cheaply.
Industry RankSector Rank
PE 7.57
Fwd PE 5.39

4.2 Price Multiples

89.66% of the companies in the same industry are more expensive than STLAP, based on the Enterprise Value to EBITDA ratio.
96.55% of the companies in the same industry are more expensive than STLAP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.79
EV/EBITDA 1.01

4.3 Compensation for Growth

STLAP has an outstanding profitability rating, which may justify a higher PE ratio.
STLAP's earnings are expected to grow with 27.09% in the coming years. This may justify a more expensive valuation.
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

With a Yearly Dividend Yield of 7.61%, STLAP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.09, STLAP pays a better dividend. On top of this STLAP pays more dividend than 89.66% of the companies listed in the same industry.
STLAP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 7.61%

5.2 History

The dividend of STLAP is nicely growing with an annual growth rate of 386.64%!
Dividend Growth(5Y)386.64%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

22.63% of the earnings are spent on dividend by STLAP. This is a low number and sustainable payout ratio.
The dividend of STLAP 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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