Should you consider STELLANTIS NV (NYSE:STLA) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if STELLANTIS NV (NYSE:STLA) is suited for quality investing. Investors should of course do their own research, but we spotted STELLANTIS NV showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:STLA may be interesting for quality investors.

• STELLANTIS NV has demonstrated significant revenue growth over the past 5 years, with a 11.18% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 94.07%, STELLANTIS NV demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of STELLANTIS NV stands at 2.04, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 457.0%, STELLANTIS NV highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of STELLANTIS NV has been remarkable, with 28.9% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• STELLANTIS NV has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:STLA

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall STLA gets a fundamental rating of 7 out of 10. We evaluated STLA against 39 industry peers in the Automobiles industry. While STLA has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on STLA. With these ratings, STLA could be worth investigating further for value investing!.

For an up to date full fundamental analysis you can check the fundamental report of STLA

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.