Investors should take notice of NYSE:STLA—it offers a great deal for the fundamentals it presents.

Last update: Oct 12, 2023

Our stock screening tool has pinpointed STELLANTIS NV (NYSE:STLA) as an undervalued stock. NYSE:STLA maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of NYSE:STLA

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:STLA, the assigned 9 reflects its valuation:

A Price/Earnings ratio of 3.60 indicates a rather cheap valuation of STLA.
Based on the Price/Earnings ratio, STLA is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.04. STLA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.53, the valuation of STLA can be described as very cheap.
Based on the Price/Forward Earnings ratio, STLA is valued cheaper than 97.37% of the companies in the same industry.
STLA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.05.
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 100.00% of the companies listed in the same industry.
STLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STLA has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NYSE:STLA's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:STLA scores a 9 out of 10:

STLA has a Return On Assets of 8.46%. This is amongst the best in the industry. STLA outperforms 92.11% of its industry peers.
With an excellent Return On Equity value of 21.90%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
STLA has a Return On Invested Capital of 15.16%. This is amongst the best in the industry. STLA outperforms 94.74% of its industry peers.
The last Return On Invested Capital (15.16%) for STLA is above the 3 year average (11.77%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 9.35%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
STLA's Profit Margin has improved in the last couple of years.
STLA has a better Operating Margin (12.21%) than 92.11% of its industry peers.
STLA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 20.06%, STLA belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
STLA's Gross Margin has improved in the last couple of years.

Evaluating Health: NYSE:STLA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:STLA has achieved a 5 out of 10:

Looking at the Altman-Z score, with a value of 2.20, STLA is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
STLA has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as STLA would need 2.04 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.04, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
STLA has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.

Growth Assessment of NYSE:STLA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:STLA has achieved a 5 out of 10:

STLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.99%, which is quite good.
The Earnings Per Share has been growing by 18.81% on average over the past years. This is quite good.
Looking at the last year, STLA shows a very strong growth in Revenue. The Revenue has grown by 20.19%.
STLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.

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Check the latest full fundamental report of STLA for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.