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

Last update: Nov 28, 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

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:STLA has achieved a 7 out of 10:

STLA has a Yearly Dividend Yield of 12.74%, which is a nice return.
STLA's Dividend Yield is rather good when compared to the industry average which is at 3.82. 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 2.19.
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.

Exploring NYSE:STLA's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:STLA was assigned a score of 7 for health:

With an excellent Altman-Z score value of 2.15, STLA belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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 95.24% 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.
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.

A Closer Look at Profitability for NYSE:STLA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:STLA has achieved a 9:

The Return On Assets of STLA (9.20%) is better than 92.86% of its industry peers.
The Return On Equity of STLA (22.76%) is better than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 15.22%, STLA belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STLA is above the industry average of 10.07%.
The 3 year average ROIC (14.80%) for STLA is below the current ROIC(15.22%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 9.81%, STLA belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Profit Margin of STLA has grown nicely.
STLA's Operating Margin of 12.19% is amongst the best of the industry. STLA outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of STLA has grown nicely.
STLA's Gross Margin of 20.12% is fine compared to the rest of the industry. STLA outperforms 73.81% of its industry peers.
In the last couple of years the Gross Margin of STLA has grown nicely.

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

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.