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

STLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 38 industry peers in the Automobiles industry. STLA scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on STLA. Finally STLA also has an excellent dividend rating. These ratings would make STLA suitable 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.
STLA had positive earnings in each of the past 5 years.
STLA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

STLA has a Return On Assets of 9.20%. This is amongst the best in the industry. STLA outperforms 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.
With an excellent Return On Invested Capital value of 15.22%, STLA belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STLA is above the industry average of 12.33%.
The 3 year average ROIC (14.80%) for STLA is below the current ROIC(15.22%), indicating increased profibility in the last year.
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 has a Profit Margin of 9.81%. This is amongst the best in 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 better Operating Margin (12.19%) than 94.59% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
STLA has a better Gross Margin (20.12%) 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%

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLA is creating value.
Compared to 1 year ago, STLA has less shares outstanding
Compared to 5 years ago, STLA has more shares outstanding
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.
STLA's Altman-Z score of 2.28 is fine compared to the rest of the industry. STLA outperforms 70.27% of its industry peers.
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 better Debt to Equity ratio (0.24) than 62.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.28
ROIC/WACC2.28
WACC6.68%

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.
STLA 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 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.
STLA shows a decrease in Revenue. In the last year, the revenue decreased by -2.02%.
Measured over the past years, STLA 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 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.
The Revenue is expected to grow by 11.90% 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 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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9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.79, the valuation of STLA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 86.49% 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 28.15.
With a Price/Forward Earnings ratio of 5.54, the valuation of STLA can be described as very cheap.
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 20.20, STLA is valued rather cheaply.
Industry RankSector Rank
PE 7.79
Fwd PE 5.54

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STLA is valued cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 97.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.92
EV/EBITDA 1.06

4.3 Compensation for Growth

The excellent profitability rating of STLA 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

STLA has a Yearly Dividend Yield of 7.32%, which is a nice return.
STLA's Dividend Yield is rather good when compared to the industry average which is at 2.87. STLA pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, STLA pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.32%

5.2 History

The dividend of STLA is nicely growing with an annual growth rate of 386.64%!
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.
The dividend of STLA 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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