NYSE:STLA is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 10, 2024

Our stock screener has singled out STELLANTIS NV (NYSE:STLA) as a stellar value proposition. NYSE:STLA not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:STLA has earned a 9 for valuation:

With a Price/Earnings ratio of 7.51, the valuation of STLA can be described as very cheap.
Based on the Price/Earnings ratio, STLA is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
STLA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
Based on the Price/Forward Earnings ratio of 5.35, the valuation of STLA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLA indicates a rather cheap valuation: STLA is cheaper than 97.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.99, STLA is valued rather cheaply.
STLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STLA is 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.
A more expensive valuation may be justified as STLA's earnings are expected to grow with 27.09% in the coming years.

Profitability Assessment of 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:

STLA's Return On Assets of 9.20% is amongst the best of the industry. STLA outperforms 92.11% of its industry peers.
With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.22%, STLA belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STLA is above the industry average of 11.91%.
The 3 year average ROIC (14.80%) for STLA is below the current ROIC(15.22%), indicating increased profibility in the last year.
STLA has a better Profit Margin (9.81%) than 89.47% of its industry peers.
In the last couple of years the Profit Margin of STLA has grown nicely.
With an excellent Operating Margin value of 12.19%, STLA belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
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 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of STLA has grown nicely.

A Closer Look at Health for NYSE:STLA

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:

STLA's Altman-Z score of 2.30 is fine compared to the rest of the industry. STLA outperforms 73.68% 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 94.74% of its industry peers.
STLA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
STLA has a Debt to Equity ratio of 0.24. This is in the better half of the industry: STLA outperforms 60.53% 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.

Growth Examination for NYSE:STLA

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 5 out of 10:

STLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.54% yearly.
STLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.40% yearly.
The Revenue is expected to grow by 11.30% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. 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.