NYSE:STLA, an undervalued stock with good fundamentals.

Last update: Dec 19, 2023

Our stock screening tool has pinpointed STELLANTIS NV (NYSE:STLA) as an undervalued stock option. NYSE:STLA retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

ChartMill's Evaluation of Valuation

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:

With a Price/Earnings ratio of 4.04, the valuation of STLA can be described as very cheap.
STLA's Price/Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 97.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.52, STLA is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.83, the valuation of STLA can be described as very cheap.
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 21.10. STLA is valued rather cheaply when compared to this.
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.
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.
The excellent profitability rating of STLA may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:STLA?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:STLA has achieved a 9:

With an excellent Return On Assets value of 8.46%, STLA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
STLA's Return On Equity of 21.90% is amongst the best of the industry. STLA outperforms 97.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.16%, STLA belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
STLA had an Average Return On Invested Capital over the past 3 years of 11.77%. This is above the industry average of 9.14%.
The 3 year average ROIC (11.77%) for STLA is below the current ROIC(15.16%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 9.35%, STLA belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
STLA's Profit Margin has improved in the last couple of years.
STLA's Operating Margin of 12.21% is amongst the best of the industry. STLA outperforms 94.87% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
STLA's Gross Margin of 20.06% is amongst the best of the industry. STLA outperforms 87.18% of its industry peers.
In the last couple of years the Gross Margin of STLA has grown nicely.

How do we evaluate the Health for NYSE:STLA?

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:

STLA has a better Altman-Z score (2.24) 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.
STLA has a better Debt to FCF ratio (2.04) than 92.31% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that STLA is not too dependend on debt financing.

What does the Growth looks like 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.
The Earnings Per Share has been growing by 18.81% on average over the past years. This is quite good.
STLA shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.19%.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.