NYSE:STLA: good value for what you're paying.

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.

What does the Valuation looks like for NYSE:STLA

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:STLA boasts a 8 out of 10:

• A Price/Earnings ratio of 3.73 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 25.20, which is the current average of the S&P500 Index.
• STLA is valuated cheaply with a Price/Forward Earnings ratio of 4.02.
• 100.00% of the companies in the same industry are more expensive than STLA, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, STLA is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, STLA is valued cheaper than 100.00% of the companies in the same industry.
• 97.37% 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.

Assessing Profitability for 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:

• The Return On Assets of STLA (9.20%) is better than 92.11% of its industry peers.
• STLA's Return On Equity of 22.76% is amongst the best of the industry. STLA outperforms 94.74% of its industry peers.
• STLA has a better Return On Invested Capital (15.22%) than 94.74% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for STLA is significantly above the industry average of 9.59%.
• 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.
• Looking at the Profit Margin, with a value of 9.81%, STLA belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
• STLA's Profit Margin has improved in the last couple of years.
• STLA has a Operating Margin of 12.19%. This is amongst the best in the industry. STLA outperforms 94.74% 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 78.95% of its industry peers.
• In the last couple of years the Gross Margin of STLA has grown nicely.

Assessing Health Metrics for NYSE:STLA

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 7 reflects its health status:

• The Altman-Z score of STLA (2.31) is better than 71.05% of its industry peers.
• The Debt to FCF ratio of STLA is 2.43, which is a good value as it means it would take STLA, 2.43 years of fcf income to pay off all of its debts.
• STLA's Debt to FCF ratio of 2.43 is amongst the best of the industry. STLA outperforms 97.37% of its industry peers.
• A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
• STLA has a Debt to Equity ratio of 0.24. This is in the better half of the industry: STLA outperforms 63.16% of its industry peers.
• 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.

Deciphering NYSE:STLA's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:STLA, the assigned 4 reflects its growth potential:

• STLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.84%, which is quite good.
• STLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.74% yearly.
• The Revenue has been growing by 11.41% 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.

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

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.