Don't overlook NYSE:STLA—it's a hidden gem with strong fundamentals and an attractive price tag.

STELLANTIS NV (NYSE:STLA) was identified as a decent value stock by our stock screener. NYSE:STLA scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: 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 8 out of 10:

• The Price/Earnings ratio is 4.20, which indicates a rather cheap valuation of STLA.
• Based on the Price/Earnings ratio, STLA is valued cheaper than 100.00% of the companies in the same industry.
• STLA is valuated cheaply when we compare the Price/Earnings ratio to 26.07, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 4.57, 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 97.44% of the companies are valued more expensively.
• STLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.37, 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.
• 100.00% of the companies in the same industry are more expensive than STLA, based on the Price/Free Cash Flow ratio.
• STLA has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:STLA has earned a 10 out of 10:

• Looking at the Return On Assets, with a value of 9.20%, STLA belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
• The Return On Equity of STLA (22.76%) is better than 94.87% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 15.22%, 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 14.80%. This is significantly above the industry average of 8.35%.
• The last Return On Invested Capital (15.22%) for STLA is above the 3 year average (14.80%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 9.81%, STLA belongs to the best 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 better Operating Margin (12.19%) than 94.87% of its industry peers.
• STLA's Operating Margin has improved in the last couple of years.
• STLA has a better Gross Margin (20.12%) than 82.05% of its industry peers.
• In the last couple of years the Gross Margin of STLA has grown nicely.

Unpacking NYSE:STLA's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:STLA has achieved a 7 out of 10:

• Looking at the Altman-Z score, with a value of 2.35, STLA is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
• STLA has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as STLA would need 2.43 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.43, STLA belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
• STLA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
• STLA's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. STLA outperforms 66.67% of its industry peers.
• 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.

Understanding NYSE:STLA's Growth Score

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 4 for growth:

• The Earnings Per Share has grown by an nice 15.84% over the past year.
• The Earnings Per Share has been growing by 21.74% on average over the past years. This is a very strong growth
• STLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.41% yearly.

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

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

Keep in mind

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.