In a market where value is scarce, NYSE:STLA offers a refreshing opportunity with its solid fundamentals.

Last update: May 17, 2024

Uncover the hidden value in STELLANTIS NV (NYSE:STLA) as our stock screening tool recommends it as an undervalued choice. NYSE:STLA maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Exploring NYSE:STLA's Valuation

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:

With a Price/Earnings ratio of 3.42, the valuation of STLA can be described as very cheap.
STLA's Price/Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.83. STLA is valued rather cheaply when compared to this.
STLA is valuated cheaply with a Price/Forward Earnings ratio of 3.68.
STLA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STLA is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STLA to the average of the S&P500 Index (20.47), we can say 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 97.30% of the companies listed in the same industry.
The excellent profitability rating of STLA may justify a higher PE ratio.

Exploring NYSE:STLA's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:STLA, the assigned 9 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 9.20%, STLA belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
STLA's Return On Equity of 22.76% is amongst the best of the industry. STLA outperforms 91.89% of its industry peers.
With an excellent Return On Invested Capital value of 15.22%, STLA belongs to the best of the industry, outperforming 91.89% 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 above the industry average of 12.33%.
The 3 year average ROIC (14.80%) for STLA is below the current ROIC(15.22%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 9.81%, STLA belongs to the top of the industry, outperforming 89.19% 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 94.59% 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 72.97% of its industry peers.
In the last couple of years the Gross Margin of STLA has grown nicely.

Health Analysis for NYSE:STLA

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:STLA has earned a 6 out of 10:

STLA's Altman-Z score of 2.28 is fine compared to the rest of the industry. STLA outperforms 70.27% 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.
Looking at the Debt to FCF ratio, with a value of 2.43, STLA belongs to the top of the industry, outperforming 94.59% 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.
With a decent Debt to Equity ratio value of 0.24, STLA is doing good in the industry, outperforming 62.16% 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.

Understanding NYSE:STLA's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:STLA boasts a 4 out of 10:

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
Measured over the past years, STLA shows a quite strong growth in Revenue. The Revenue has been growing by 11.41% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.