Balancing Dividends and Fundamentals: The Case of NYSE:STLA.

Last update: Jul 23, 2024

Discover STELLANTIS NV (NYSE:STLA)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:STLA showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

What does the Dividend looks like for NYSE:STLA

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:STLA earns a 7 out of 10:

STLA has a Yearly Dividend Yield of 8.16%, which is a nice return.
STLA's Dividend Yield is rather good when compared to the industry average which is at 2.91. STLA pays more dividend than 100.00% of the companies in the same industry.
STLA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
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.

Health Assessment of NYSE:STLA

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:STLA has earned a 7 out of 10:

STLA has a Altman-Z score of 2.25. This is in the better half of the industry: STLA outperforms 75.61% 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 95.12% 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 better Debt to Equity ratio (0.24) than 60.98% 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.

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:

With an excellent Return On Assets value of 9.20%, STLA belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
STLA has a Return On Equity of 22.76%. This is amongst the best in the industry. STLA outperforms 92.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.22%, STLA belongs to the top of the industry, outperforming 95.12% 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 11.60%.
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 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of STLA has grown nicely.
The Operating Margin of STLA (12.19%) is better than 97.56% of its industry peers.
STLA's Operating Margin has improved in the last couple of years.
STLA's Gross Margin of 20.12% is fine compared to the rest of the industry. STLA outperforms 70.73% of its industry peers.
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.

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

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.