Is NYSE:STLA suited for dividend investing?

Last update: Dec 19, 2024

Our stock screening tool has identified STELLANTIS NV (NYSE:STLA) as a strong dividend contender with robust fundamentals. NYSE:STLA exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

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:

With a Yearly Dividend Yield of 11.74%, STLA is a good candidate for dividend investing.
STLA's Dividend Yield is rather good when compared to the industry average which is at 3.77. STLA pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, STLA pays a better dividend.
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 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's Altman-Z score of 2.16 is amongst the best of the industry. STLA outperforms 83.33% 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 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that STLA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, STLA is doing good in the industry, outperforming 61.90% of the companies in the same industry.
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.

Profitability Analysis 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.
With an excellent Return On Equity value of 22.76%, STLA belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
STLA has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. STLA outperforms 95.24% 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 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.
STLA's Profit Margin has improved in the last couple of years.
STLA has a Operating Margin of 12.19%. This is amongst the best in the industry. STLA outperforms 95.24% of its industry peers.
STLA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.12%, STLA is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
STLA's Gross Margin has improved in the last couple of years.

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

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

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.