Free Trial

Is Stellantis Stock a Value Investor’s Dream?

Stellantis stock price forecast

Key Points

  • Stellantis plans to lead the global electrification and decarbonization wave targeting 100% of its European sales to be EVs by 2030 and achieve carbon net-zero by 2038.
  • Global battery electric vehicle (BEV) sales rose 41% in 2022 to 288,000.
  • The company benefitted from a strong U.S. dollar as all regions are growing and delivering record profitability.
  • Stellantis has €46.43 billion in cash and cash equivalents, or around $15 cash per share and €27.15 billion in debt.
  • Stellantis is the third largest automaker in the world. -Stellantis shares are trading at 4.3X forward earnings with a 6.23% annual dividend yield.
  • 5 stocks we like better than Stellantis

Stellantis NV NYSE: STLA is the world’s third largest automaker behind Toyota Motor Corp. NYSE: TM at number two and Volkswagen AG OTCMKTS: VWAGY at number one. The company was born from a merger between Fiat Chrysler and the French PSA Group in January 2021. While Stellantis may not sound familiar to you, some of its 14 brands will.

Its brands range from Alfa Romeo, Chrysler, Dodge, and Jeep to Maserati, Peugeot, and Ram. Ram Trucks is a stand-alone brand for what used to be Dodge trucks. The company is set on leading the electrification and decarbonization movement with its Dare Forward 2030 strategic plan.

Electrification and Decarbonization

Stellantis has targeted 100% of European and 50% of U.S. sales to be EVs by 2030. They plan to produce over 75 battery electric vehicles (BEVs) with annual sales of 5 million units by 2030. The company plans to achieve carbon net-zero by 2038.

Tesla Factory Automation

Automation has been a critical component in improving manufacturing efficiencies. Comau Robotics is an Italian industrial robotics and automation systems company owned by Stellantis. They have a history of supplying automation systems for Telsa Inc. NASDAQ: TSLA vehicle manufacturing facilities.

They signed a new deal in 2021 to outfit its Fremont facility with robotics and automation equipment. The California facility is the only one that manufactures four Tesla models. Tesla will begin the quality control automation by installing two robots in its Fremont facility. This is based on a new permit submitted by Tesla for installing an Automatic Inspection System.

Full-Year 2022 Earnings Results

On Feb. 22, 2023, Stellantis released its full-year 2022. The company reported net profits grew 26% to €16.8 billion. Revenues were €179.6 billion beating €176.1 billion consensus analyst estimates. Adjusted operating income rose 29% to €23.3 billion with a 13% margin which beat its 2030 target of 12%.

Stellantis achieved net cash synergies of €7.1 billion, two years ahead of its €5 billion annual steady-state target. Stellantis was the number one EU30 commercial vehicle BEV sales and No. 2 EU30 overall BEV sales.

The company authorized a €1.5 billion stock buyback in the open market by the end of 2023. The company sees 5% top-line growth for 2023 in North America, Enlarged Europe, Middle East & Africa, and India and Asia Pacific. Global EV sales rose 41% YoY to 288,000 vehicles in 2022. Its all-electric SUV Jeep Avenger won European Car of the Year 2023. The company confirmed locations to build five gigafactories, including three in Europe and two in North America.

A Value Investors Dream

One has to do a double-take when looking at Stellantis' valuation. The company has around $15 per share in cash with a 6.23% annualized dividend and a forward P/E of just 4.2, trading at $17.50 per share and (only) €27.12 billion in debt. These metrics appear very cheap compared to General Motors Co. NYSE: GE at $39.27, trading at 6.35X forward earnings with a 0.92% annual dividend yield and $19.58 cash per share, and $116 billion in debt.

Ford Motor Co. NYSE: F at $11.95 trades at 7.5X forward earnings with a 5.03% annualized dividend yield and $8.07 in cash per share, and $140.5 billion in debt. The dividend may be at risk.

Is Stellantis Stock a Value Investor’s Dream?

Weekly Rounding Bottom and Cup

The STLA weekly candlestick chart depicts the rounding bottom formed after bottoming out at $11.37 in July 2022. STLA triggered a weekly market structure low (MSL) breakout at $14.40 as it climbed towards the lip line at $18.39. This would also complete the cup and set up for a pullback and handle formation.

The weekly stochastic is above the overbought 80-band and may be attempting another push by way of a mini pup. The weekly 20-period exponential moving average (EMA) support is rising at 15.28, followed by the weekly 50-period MA at $14.18. Pullback supports are $16.24, $15.68, $14.40 weekly MSL trigger, and $13.71.

→ [URGENT] Altcoin Winning Picks (From Crypto Swap Profits) (Ad)

Should you invest $1,000 in Stellantis right now?

Before you consider Stellantis, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Stellantis wasn't on the list.

While Stellantis currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

A Guide To High-Short-Interest Stocks Cover

MarketBeat's analysts have just released their top five short plays for July 2024. Learn which stocks have the most short interest and how to trade them. Click the link below to see which companies made the list.

Get This Free Report
Jea Yu
About The Author

Jea Yu

Contributing Author

Trading Strategies

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Stellantis (STLA)
4.6014 of 5 stars
4.60 / 5 stars
$20.21-1.5%8.21%3.70Moderate Buy$29.55
General Motors (GM)
4.8459 of 5 stars
4.85 / 5 stars
$48.30-2.7%0.99%5.90Moderate Buy$55.96
General Motors (GMM.U)
0 of 5 stars
0.00 / 5 stars
General Motors (GMM)
0 of 5 stars
0.00 / 5 stars
0 of 5 stars
0.00 / 5 stars
Stellantis (PUGOY)
0 of 5 stars
0.00 / 5 stars
Tesla (TSLA)
4.5013 of 5 stars
4.50 / 5 stars
Toyota Motor (TM)
3.9369 of 5 stars
3.94 / 5 stars
Volkswagen (VOW3)
0 of 5 stars
0.00 / 5 stars
Volkswagen (VWAPY)
0 of 5 stars
0.00 / 5 stars
Volkswagen (VWAGY)
0 of 5 stars
0.00 / 5 stars
Volkswagen Aktiengesellschaft (VLKAY)
0 of 5 stars
0.00 / 5 stars
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

Opportunities Arise as Stock Market Rotates from Big Tech
3 Top Market Leaders Splitting Their Stocks
How to Navigate Stock Downgrades

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines