Why NYSE:STLA provides a good dividend, while having solid fundamentals.

Last update: Jun 10, 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.

Dividend Examination for NYSE:STLA

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:STLA has been assigned a 7 for dividend:

STLA has a Yearly Dividend Yield of 7.63%, which is a nice return.
Compared to an average industry Dividend Yield of 2.95, STLA pays a better dividend. On top of this STLA pays more dividend than 100.00% 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 2.37.
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.
22.63% of the earnings are spent on dividend by STLA. This is a low number and sustainable payout ratio.

Looking at the Health

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:

STLA has a better Altman-Z score (2.30) than 73.68% 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 94.74% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
STLA's Debt to Equity ratio of 0.24 is fine compared to the rest 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.

Exploring NYSE:STLA's Profitability

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 9 out of 10:

Looking at the Return On Assets, with a value of 9.20%, STLA belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.76%, STLA belongs to the top 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.
STLA had an Average Return On Invested Capital over the past 3 years of 14.80%. This 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.
The Profit Margin of STLA (9.81%) is better than 89.47% of its industry peers.
STLA's Profit Margin has improved in the last couple of years.
The Operating Margin of STLA (12.19%) is better than 97.37% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
Looking at the Gross Margin, with a value of 20.12%, STLA is in the better half of 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.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Disclaimer

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.