Analyzing NYSE:STLA's Dividend Potential.

Last update: Apr 5, 2024

STELLANTIS NV (NYSE:STLA) has caught the attention of dividend investors as a stock worth considering. NYSE:STLA excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

How We Gauge Dividend for NYSE:STLA

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:STLA has been awarded a 7 for its dividend quality:

STLA has a Yearly Dividend Yield of 5.09%, which is a nice return.
Compared to an average industry Dividend Yield of 2.65, STLA pays a better dividend. On top of this STLA pays more dividend than 97.44% of the companies listed in the same industry.
STLA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
On average, the dividend of STLA grows each year by 386.64%, which is quite nice.
STLA has been paying a dividend for over 5 years, so it has already some track record.
STLA pays out 22.63% of its income as dividend. This is a sustainable payout ratio.

Health Analysis 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 6 for health provides valuable insights:

STLA has a better Altman-Z score (2.33) than 79.49% of its industry peers.
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.
STLA has a better Debt to FCF ratio (2.43) than 97.44% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, 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.

Evaluating Profitability: NYSE:STLA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:STLA has achieved a 9:

STLA's Return On Assets of 9.20% is amongst the best of the industry. STLA outperforms 94.87% of its industry peers.
The Return On Equity of STLA (22.76%) is better than 94.87% of its industry peers.
STLA has a better Return On Invested Capital (15.22%) than 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLA is significantly above the industry average of 8.18%.
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.
STLA has a better Profit Margin (9.81%) than 92.31% of its industry peers.
STLA's Profit Margin has improved in the last couple of years.
STLA's Operating Margin of 12.19% is amongst the best of 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 a decent Gross Margin value of 20.12%, STLA is doing good in the industry, outperforming 79.49% of the companies in the same industry.
STLA's Gross Margin has improved in the last couple of years.

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Check the latest full fundamental report of STLA for a complete fundamental analysis.

Keep in mind

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.