NYSE:STLA appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 6, 2023

Take a closer look at STELLANTIS NV (NYSE:STLA), a remarkable value stock uncovered by our stock screener. NYSE:STLA excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Insights: NYSE:STLA

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:STLA scores a 9 out of 10:

The Price/Earnings ratio is 3.54, which indicates a rather cheap valuation of STLA.
Based on the Price/Earnings ratio, STLA is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 23.86, STLA is valued rather cheaply.
A Price/Forward Earnings ratio of 3.37 indicates a rather cheap valuation of STLA.
100.00% of the companies in the same industry are more expensive than STLA, based on the Price/Forward Earnings ratio.
STLA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.98.
STLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STLA is cheaper than 100.00% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than STLA, based on the Price/Free Cash Flow ratio.
STLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of STLA may justify a higher PE ratio.

Evaluating Profitability: NYSE:STLA

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:

Looking at the Return On Assets, with a value of 8.46%, STLA belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
STLA's Return On Equity of 21.90% is amongst the best of the industry. STLA outperforms 94.74% of its industry peers.
STLA has a Return On Invested Capital of 15.16%. This is amongst the best in the industry. STLA outperforms 97.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLA is above the industry average of 9.21%.
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 Operating Margin of 12.21%. This is amongst the best in the industry. STLA outperforms 94.74% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
STLA has a Gross Margin of 20.06%. This is amongst the best in the industry. STLA outperforms 86.84% of its industry peers.
In the last couple of years the Gross Margin of STLA has grown nicely.

Unpacking NYSE:STLA's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:STLA was assigned a score of 5 for health:

With a decent Altman-Z score value of 2.19, STLA is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Debt to FCF ratio of STLA is 2.04, which is a good value as it means it would take STLA, 2.04 years of fcf income to pay off 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.

A Closer Look at Growth for NYSE:STLA

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:STLA has earned a 5 for growth:

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.
Measured over the past years, STLA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.81% on average per year.
STLA shows a strong growth in Revenue. In the last year, 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.

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.