When you look at NYSE:STLA, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Feb 20, 2024

Uncover the potential of STELLANTIS NV (NYSE:STLA) as our stock screener's choice for an undervalued stock. NYSE:STLA maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Assessment of NYSE:STLA

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:STLA has received a 9 out of 10:

A Price/Earnings ratio of 4.49 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/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.18. STLA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.40, which indicates a rather cheap valuation of STLA.
Based on the Price/Forward Earnings ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.51, STLA is valued rather cheaply.
100.00% of the companies in the same industry are more expensive than STLA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STLA is valued cheaper than 100.00% of the companies 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.

Profitability Insights: NYSE:STLA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:STLA was assigned a score of 9 for 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.
With an excellent Return On Equity value of 21.90%, STLA belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
STLA's Return On Invested Capital of 15.16% is amongst the best of the industry. STLA outperforms 97.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STLA is above the industry average of 8.30%.
The 3 year average ROIC (11.77%) for STLA is below the current ROIC(15.16%), indicating increased profibility in the last year.
The Profit Margin of STLA (9.35%) is better than 92.31% of its industry peers.
STLA's Profit Margin has improved in the last couple of years.
STLA has a Operating Margin of 12.21%. This is amongst the best in the industry. STLA outperforms 94.87% of its industry peers.
STLA's Operating Margin has improved in the last couple of years.
The Gross Margin of STLA (20.06%) is better than 84.62% of its industry peers.
STLA's Gross Margin has improved in the last couple of years.

What does the Health looks like for NYSE:STLA

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:STLA, the assigned 7 for health provides valuable insights:

The Altman-Z score of STLA (2.27) is better than 79.49% 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 Debt to FCF ratio of 2.04. This is amongst the best in the industry. STLA outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that STLA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.26, STLA is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The current and quick ratio evaluation for STLA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

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 18.00%, 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 18.84% on average per year.
Looking at the last year, STLA shows a very strong growth in Revenue. 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.