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

Our stock screener has spotted STELLANTIS NV (NYSE:STLA) as an undervalued stock with solid fundamentals. NYSE:STLA shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Deciphering NYSE:STLA's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:STLA has earned a 9 for valuation:

• A Price/Earnings ratio of 3.92 indicates a rather cheap valuation of STLA.
• STLA's Price/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/Earnings ratio is at 25.92. STLA is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 3.71, which 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.
• The average S&P500 Price/Forward Earnings ratio is at 20.82. 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.
• The 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.

Profitability Assessment of 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:

• STLA's Return On Assets of 8.46% is amongst the best of the industry. STLA outperforms 92.11% of its industry peers.
• The Return On Equity of STLA (21.90%) is better than 97.37% of its industry peers.
• STLA has a better Return On Invested Capital (15.16%) than 97.37% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for STLA 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.
• STLA has a Profit Margin of 9.35%. This is amongst the best in the industry. STLA outperforms 92.11% of its industry peers.
• STLA's Profit Margin has improved in the last couple of years.
• STLA has a better Operating Margin (12.21%) than 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.

Analyzing Health Metrics

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:STLA, the assigned 5 reflects its health status:

• The Altman-Z score of STLA (2.22) is better than 78.95% of its industry peers.
• 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.
• STLA's Debt to FCF ratio of 2.04 is amongst the best of the industry. STLA outperforms 92.11% of its industry peers.
• 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:

• The Earnings Per Share has grown by an nice 17.99% over the past year.
• STLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.81% yearly.
• 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.

Our latest full fundamental report of STLA contains the most current fundamental analsysis.

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.