NYSE:STLA appears to be flying under the radar despite its strong fundamentals.

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.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:STLA, the assigned 9 reflects its valuation:

• A Price/Earnings ratio of 6.96 indicates a rather cheap valuation of STLA.
• 97.44% of the companies in the same industry are more expensive than STLA, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.73. STLA is valued rather cheaply when compared to this.
• STLA is valuated cheaply with a Price/Forward Earnings ratio of 4.95.
• Based on the Price/Forward Earnings ratio, STLA is valued cheaper than 97.44% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.32. STLA is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, STLA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, STLA is valued cheaper than 97.44% of the companies in the same industry.
• The excellent profitability rating of STLA 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.

Assessing Profitability for NYSE:STLA

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:

• STLA has a better Return On Assets (9.20%) than 92.31% of its industry peers.
• With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
• The Return On Invested Capital of STLA (15.22%) is better than 94.87% of its industry peers.
• STLA had an Average Return On Invested Capital over the past 3 years of 14.80%. This is above the industry average of 11.79%.
• 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 Profit Margin of 9.81%. This is amongst the best in the industry. STLA outperforms 89.74% of its industry peers.
• STLA's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 12.19%, STLA belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
• STLA's Operating Margin has improved in the last couple of years.
• The Gross Margin of STLA (20.12%) is better than 71.79% of its industry peers.
• In the last couple of years the Gross Margin of STLA has grown nicely.

Understanding NYSE:STLA's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:STLA scores a 7 out of 10:

• The Altman-Z score of STLA (2.24) is better than 76.92% 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.
• Looking at the Debt to FCF ratio, with a value of 2.43, STLA belongs to the top of the industry, outperforming 94.87% 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 has a Debt to Equity ratio of 0.24. This is in the better half of the industry: STLA outperforms 61.54% 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.

How do we evaluate the Growth for NYSE:STLA?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:STLA has received 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.
• Based on estimates for the next years, STLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.24% on average per year.
• STLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.25% yearly.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

Disclaimer

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.