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Stellantis N.V. (IT:STLAM)
:STLAM
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Stellantis
(NYSE:STLAM)
Rating:70Outperform
Price Target:
€9.00
▲(18.73% Upside)
Positive Factors
Earnings Recovery
Earnings are expected to recover significantly, driven by revenue growth in the US and new model launches, which should lead to an earnings turnaround.
Product Launches
The earnings momentum in North America will be marked by new product launches such as the Cherokee and its ability to maintain margins in Latam and Europe.
Strategic Options
Strategic options under consideration, such as restructuring the brand portfolio or splitting the group, could support future valuation.
Negative Factors
European Market Challenges
Concerns are growing over Stellantis' positioning in Europe, particularly in the electric vehicle market against rising competition.
Market Position Concerns
Stellantis' share price has fallen significantly, indicating concerns about its current market position.
Tariff and Competitive Pressures
The new CEO faces challenges, including tariffs on Mexican imports affecting US sales and pressure to align pricing with competitors.
Stellantis (STLAM) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€28.42B
Dividend Yield8.96%
Average Volume (3M)26.27M
Price to Earnings (P/E)4.5
Beta (1Y)1.59
Revenue Growth-17.07%
EPS GrowthN/A
CountryIT
Employees248,243
SectorConsumer Cyclical
Sector Strength64
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.18
Shares Outstanding2,880,492,200
10 Day Avg. Volume30,524,423
30 Day Avg. Volume26,271,402
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.45
Price to Sales (P/S)0.24
P/FCF Ratio-5.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€9.01Price Target Upside18.92% Upside
Rating ConsensusHold
Number of Analyst Covering19
Stellantis Business Overview & Revenue Model
Company DescriptionStellantis N.V. is a multinational automotive manufacturing corporation formed through the merger of Fiat Chrysler Automobiles and PSA Group. The company is headquartered in Amsterdam, Netherlands, and operates globally, producing a diverse range of vehicles under various well-known brands, including Peugeot, Citroën, Fiat, Chrysler, Jeep, Dodge, Ram, Maserati, and Alfa Romeo. Stellantis focuses on designing, manufacturing, and selling automobiles, commercial vehicles, and luxury vehicles, with a growing emphasis on electric and hybrid technologies.
How the Company Makes MoneyStellantis generates revenue primarily through the sale of vehicles, which includes both passenger cars and commercial vehicles across its diverse brand portfolio. The company also earns income from its financial services, offering vehicle leasing and financing solutions through strategic partnerships and subsidiaries. Additionally, Stellantis benefits from after-sales services, which include parts, accessories, and maintenance services. The company is increasingly investing in electric and hybrid vehicle production, which is expected to grow as a revenue stream. Strategic partnerships, such as joint ventures and alliances with other automotive and technology companies, further enhance its market presence and contribute to its overall earnings.
Stellantis Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -8.38%|
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a challenging first half of 2025 for Stellantis, marked by declines in shipments, revenue, and profitability due to tariffs and regional headwinds. However, the company is making strategic changes under new leadership to drive growth, with significant product launches and improvements in inventory and order books. While financial liquidity remains strong, ongoing regulatory and market challenges persist.Q2-2025 Updates
Positive Updates
Leadership Transition and Strategic Changes
Antonio Filosa took over as CEO with a new leadership team focused on decisive actions to improve performance. Key strategic decisions include ending fuel cell initiatives in Europe and reintroducing popular models like the Jeep Cherokee and Dodge Charger, which are expected to drive growth and profitability.
Inventory and Order Book Improvements
Stellantis reduced total inventory by 16% in Europe and North America combined over the last year. The order books in North America and Europe increased by 14% in the last year and 34% in the last six months, signaling strong demand.
Product Launches and Market Share Gains
The company launched four new products in H1, including competitive B segment products in Europe. Market share in Europe increased by 1.3 percentage points from H2 2024, with Stellantis taking the #2 spot in European BEV volumes and becoming #1 in European hybrids.
Financial Liquidity and Capital Market Plans
Stellantis maintained a strong industrial liquidity position with EUR 47 billion in liquidity, including EUR 31 billion in cash and liquid securities. The company plans to present an updated long-term strategic plan at the Capital Markets Day in early 2026.
Negative Updates
Decline in Shipments and Revenue
Consolidated shipments fell 7% to 2.7 million units, and net revenue decreased by 13% to EUR 74 billion due to adverse regional mix and lower pricing.
Negative AOI Margin and Cash Flow Challenges
AOI margin was compressed to 70 basis points, and industrial free cash flow was an outflow of EUR 3 billion in the first half. Tariffs and foreign exchange headwinds, along with a EUR 1.6 billion increase in industrial costs, contributed to this challenge.
Tariff and Regulatory Pressures
The expected net tariff expense for the year is approximately EUR 1.5 billion, with significant impacts in H2. Regulatory challenges, particularly in the U.S. and Europe, continue to pose risks.
Underperformance in Key Regions
North America and Europe remain in turnaround phases with profitability challenges. In Europe, industry volumes in LCVs dropped by 13%, impacting stronghold segments.
Company Guidance
During the Stellantis Half Year 2025 Results call, the company provided financial guidance indicating a challenging period while maintaining a focus on strategic improvement. Consolidated shipments decreased by 7% to 2.7 million units, with net revenue falling by 13% to EUR 74 billion. The adverse mix and pricing led to a compressed adjusted operating income (AOI) margin of 70 basis points, with an AOI of EUR 540 million. Despite these challenges, the company noted a sequential improvement from the second half of 2024, attributed to new product launches and improved inventory management. The industrial free cash flow showed a EUR 3 billion outflow, primarily due to low AOI generation and working capital headwinds. For the second half of 2025, Stellantis expects net revenue growth and AOI margins in the low single digits, alongside improvements in industrial free cash flow. The company is focusing on launching new products, addressing tariffs that could reach up to EUR 1.5 billion, and maintaining financial discipline to drive gradual sequential acceleration through the remainder of the year and beyond.Stellantis Financial Statement Overview
Summary
Stellantis has shown strong revenue growth and a solid balance sheet, but recent declines in net income, profitability, and cash flow in 2024 are concerns. The company's equity levels remain robust, but it needs to address these financial strains to ensure long-term growth.Income Statement
Stellantis shows strong revenue growth over the years, with a peak in 2023. The gross profit margin has improved considerably, indicating efficiency in managing production costs. However, 2024 saw a decline in net income and revenue compared to 2023, impacting the net profit margin. The EBIT and EBITDA margins have also decreased in 2024, suggesting higher operational costs or reduced revenue.78
Positive
Balance Sheet
The company's balance sheet is solid with a high level of stockholder's equity compared to total assets, indicating a strong equity ratio. The debt-to-equity ratio is moderate, showing the company is not overly leveraged. Return on equity showed strong performance in 2023 but slightly decreased in 2024, which might be a concern if the trend continues.82
Very Positive
Cash Flow
Stellantis had strong operating cash flows in 2023 but faced negative free cash flow in 2024, indicating higher capital expenditures or changes in cash management. The free cash flow to net income ratio was positive in 2023 but turned negative in 2024, highlighting potential cash management issues.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 156.88B | 189.54B | 179.59B | 149.42B | 86.68B |
| Gross Profit | 20.52B | 38.14B | 35.27B | 29.48B | 10.71B |
| EBITDA | 12.78B | 31.30B | 27.49B | 21.77B | 5.48B |
| Net Income | 5.47B | 18.60B | 16.80B | 14.20B | 29.00M |
Balance Sheet | |||||
| Total Assets | 207.61B | 202.13B | 186.16B | 171.77B | 99.73B |
| Cash, Cash Equivalents and Short-Term Investments | 37.18B | 47.16B | 50.27B | 51.41B | 24.20B |
| Total Debt | 37.23B | 29.46B | 27.15B | 33.58B | 21.12B |
| Total Liabilities | 125.49B | 120.01B | 113.77B | 115.46B | 73.87B |
| Stockholders Equity | 81.69B | 81.69B | 72.00B | 55.91B | 25.74B |
Cash Flow | |||||
| Free Cash Flow | -7.05B | 12.29B | 10.95B | 8.53B | 583.00M |
| Operating Cash Flow | 4.01B | 22.48B | 19.96B | 18.65B | 9.18B |
| Investing Cash Flow | -15.98B | -15.05B | -10.53B | 8.67B | -7.92B |
| Financing Cash Flow | 2.06B | -9.20B | -13.17B | -1.37B | 9.09B |
Stellantis Technical Analysis
Negative
7.58
Price Trends
8.44
Negative
8.67
Negative
10.10
Negative
Market Momentum
-0.23
Positive
38.56
Neutral
4.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:STLAM, the sentiment is Negative. The current price of 7.58 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 8.44, and below the 200-day MA of 10.10, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 4.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:STLAM.
Stellantis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
IT:STLAM
Stellantis
7.58
-5.49
-41.97%
RACE
Ferrari
441.79
24.43
5.85%
DE:2PI
Pirelli & C. SpA
5.80
0.79
15.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.