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 39 industry peers in the Automobiles industry. STLA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STLA is valued quite cheap, while showing a decent growth score. This is a good combination! Finally STLA also has an excellent dividend rating. This makes STLA very considerable for value and dividend and quality investing!



9

1. Profitability

1.1 Basic Checks

In the past year STLA was profitable.
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

The Return On Assets of STLA (9.20%) is better than 92.11% of its industry peers.
With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 92.11% 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 94.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STLA is above the industry average of 11.43%.
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 89.47% of the companies in the same industry.
STLA's Profit Margin has improved in the last couple of years.
STLA has a Operating Margin of 12.19%. This is amongst the best in the industry. STLA outperforms 97.37% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
STLA has a Gross Margin of 20.12%. This is in the better half of the industry: STLA outperforms 73.68% of its industry peers.
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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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLA is creating value.
The number of shares outstanding for STLA has been reduced compared to 1 year ago.
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 2.27. 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 73.68% of the companies in the same industry.
The Debt to FCF ratio of STLA is 2.43, which is a good value as it means it would take STLA, 2.43 years of fcf income to pay off 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 97.37% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
STLA's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. STLA outperforms 60.53% 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

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 has a Current ratio (1.24) which is comparable to the rest of the industry.
A Quick Ratio of 0.95 indicates that STLA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, STLA is doing worse than 60.53% of the companies in the same industry.
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

STLA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.56%.
The Earnings Per Share has been growing by 31.54% on average over the past years. This is a very strong growth
Looking at the last year, STLA shows a decrease in Revenue. The Revenue has decreased by -2.02% in the last year.
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 Q2Q%-9.68%
Revenue 1Y (TTM)-2.02%
Revenue growth 3Y0.75%
Revenue growth 5Y2.93%
Sales Q2Q%-49.73%

3.2 Future

Based on estimates for the next years, STLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.40% on average per year.
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.
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 7.68, the valuation of STLA can be described as very cheap.
94.74% of the companies in the same industry are more expensive than STLA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.05, STLA is valued rather cheaply.
A Price/Forward Earnings ratio of 5.47 indicates a rather cheap valuation of STLA.
Based on the Price/Forward Earnings ratio, STLA is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
STLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.68
Fwd PE 5.47

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.
STLA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STLA is cheaper than 97.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.86
EV/EBITDA 1.01

4.3 Compensation for Growth

The excellent profitability rating of STLA may justify a higher PE ratio.
STLA'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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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.57%, STLA is a good candidate for dividend investing.
STLA's Dividend Yield is rather good when compared to the industry average which is at 2.92. STLA pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, STLA pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.57%

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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