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Why the quality investor may take a look at STELLANTIS NV (NYSE:STLA).

By Mill Chart

Last update: Oct 9, 2023

In this article we will dive into STELLANTIS NV (NYSE:STLA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STELLANTIS NV showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:STLA may be interesting for quality investors.

  • Over the past 5 years, STELLANTIS NV has experienced impressive revenue growth, with 11.18% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 94.07%, STELLANTIS NV showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 2.04, STELLANTIS NV exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • STELLANTIS NV demonstrates consistent Profit Quality over the past 5 years, with a strong 457.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 28.9%, STELLANTIS NV showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of STELLANTIS NV has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

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. STLA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes STLA very considerable for value investing!

Our latest full fundamental report of STLA contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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