NYSE:STLA is probably undervalued for the fundamentals it is displaying.

Last update: Nov 27, 2023

Consider STELLANTIS NV (NYSE:STLA) as a top value stock, identified by our stock screening tool. NYSE:STLA shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

ChartMill's Evaluation of Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:STLA has achieved a 9 out of 10:

The Price/Earnings ratio is 3.53, which indicates a rather cheap valuation of STLA.
Compared to the rest of the industry, the Price/Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 97.44% 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 24.55.
STLA is valuated cheaply with a Price/Forward Earnings ratio of 3.36.
STLA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.64. STLA is valued rather cheaply when compared to this.
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.
Based on the Price/Free Cash Flow ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
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 better Return On Assets (8.46%) than 92.31% of its industry peers.
STLA has a Return On Equity of 21.90%. This is amongst the best in the industry. STLA outperforms 97.44% of its industry peers.
With an excellent Return On Invested Capital value of 15.16%, STLA belongs to the best of the industry, outperforming 97.44% 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 9.28%.
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.
STLA has a Profit Margin of 9.35%. This is amongst the best in the industry. STLA outperforms 92.31% of its industry peers.
In the last couple of years the Profit Margin of STLA has grown nicely.
The Operating Margin of STLA (12.21%) is better than 94.87% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
With an excellent Gross Margin value of 20.06%, STLA belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
In the last couple of years the Gross Margin of STLA has grown nicely.

Health Analysis for NYSE:STLA

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:STLA has earned a 5 out of 10:

STLA has a better Altman-Z score (2.19) than 76.92% of its industry peers.
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 92.31% 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.

Assessing Growth for NYSE:STLA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:STLA scores 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.
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.
The Revenue has grown by 20.19% in the past year. This is a very strong growth!
STLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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.