Is NYSE:STLA suited for dividend investing?

Last update: Jan 9, 2025

Consider STELLANTIS NV (NYSE:STLA) as a top pick for dividend investors, identified by our stock screening tool. NYSE:STLA shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

How We Gauge Dividend for NYSE:STLA

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:STLA has received a 7 out of 10:

With a Yearly Dividend Yield of 12.28%, STLA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.85, STLA pays a better dividend. On top of this STLA pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 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

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:STLA has earned a 7 out of 10:

STLA has a better Altman-Z score (2.17) than 82.50% 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.
STLA has a better Debt to FCF ratio (2.43) than 95.00% of its industry peers.
STLA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
STLA's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. STLA outperforms 62.50% 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.

Understanding NYSE:STLA's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:STLA, the assigned 9 is noteworthy for profitability:

With an excellent Return On Assets value of 9.20%, STLA belongs to the best of the industry, outperforming 92.50% 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 95.00% of its industry peers.
STLA has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. STLA outperforms 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STLA is above the industry average of 10.03%.
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 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of STLA has grown nicely.
With an excellent Operating Margin value of 12.19%, STLA belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
STLA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 20.12%, STLA is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Gross Margin of STLA has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

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.