NYSE:STLA, an undervalued stock with good fundamentals.

Last update: Jan 30, 2024

Our stock screening tool has pinpointed STELLANTIS NV (NYSE:STLA) as an undervalued stock. NYSE:STLA maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Analysis for NYSE:STLA

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:STLA was assigned a score of 9 for valuation:

The Price/Earnings ratio is 3.70, which indicates a rather cheap valuation of STLA.
Based on the Price/Earnings ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STLA to the average of the S&P500 Index (26.24), we can say STLA is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.62, the valuation of STLA can be described as very cheap.
Based on the Price/Forward Earnings ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
STLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, STLA is valued cheaper than 100.00% of the companies 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.

Assessing Profitability for NYSE:STLA

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:STLA, the assigned 9 is a significant indicator of profitability:

STLA has a Return On Assets of 8.46%. This is amongst the best in the industry. STLA outperforms 94.87% of its industry peers.
STLA has a Return On Equity of 21.90%. This is amongst the best in the industry. STLA outperforms 94.87% of its industry peers.
STLA's Return On Invested Capital of 15.16% is amongst the best of the industry. STLA outperforms 97.44% of its industry peers.
STLA had an Average Return On Invested Capital over the past 3 years of 11.77%. This is above the industry average of 8.42%.
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.
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.
In the last couple of years the Profit Margin of STLA has grown nicely.
STLA has a Operating Margin of 12.21%. This is amongst the best in the industry. STLA outperforms 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 84.62% of the companies in the same industry.
STLA's Gross Margin has improved in the last couple of years.

Health Assessment of 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 7 for health:

STLA's Altman-Z score of 2.21 is amongst the best of the industry. STLA outperforms 82.05% 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 92.31% 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.
Looking at the Debt to Equity ratio, with a value of 0.26, STLA is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
STLA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:STLA was assigned a score of 5 for growth:

The Earnings Per Share has grown by an nice 17.99% over the past year.
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.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.