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Stellantis (IT:STLAM)
:STLAM
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Stellantis
(STLAM)
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Rating:63Neutral
Price Target:
€9.50
▼(-2.26% Downside)
Stellantis faces challenges with declining profitability and cash flow, as highlighted in the earnings call. While the company has a strong balance sheet and potential for recovery through new product launches, the current technical and valuation metrics suggest caution.
Positive Factors
Strategic Partnerships
The collaboration to develop Level 4 autonomous vehicles positions Stellantis as a leader in autonomous transportation, leveraging expertise from Nvidia, Uber, and Foxconn. This strategic move enhances Stellantis' competitive edge in the growing autonomous vehicle market.
US Market Expansion
The $13B investment in the US market aims to increase production by 50%, introduce new vehicles, and create jobs. This expansion strengthens Stellantis' market position and supports long-term growth in a key automotive market.
Product Launches
New product launches, including competitive B segment products, are expected to drive revenue growth and increase market share, particularly in Europe. This supports Stellantis' strategy to diversify and strengthen its product portfolio.
Negative Factors
Decline in Net Revenue
A significant decline in net revenue due to adverse regional mix and lower pricing highlights challenges in maintaining profitability and market competitiveness, impacting long-term financial health.
Free Cash Flow Outflow
Negative free cash flow indicates potential cash management issues and higher capital expenditures, which may strain financial resources and limit investment in growth opportunities.
Tariff and FX Headwinds
Tariff and foreign exchange headwinds increase costs and reduce margins, posing ongoing risks to profitability and financial performance, particularly in key markets like North America and Europe.
Stellantis (STLAM) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€35.45B
Dividend Yield7.23%
Average Volume (3M)20.47M
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-17.07%
EPS Growth-118.99%
CountryIT
Employees248,243
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.05
Shares Outstanding2,880,492,200
10 Day Avg. Volume14,027,309
30 Day Avg. Volume20,469,228
Financial Highlights & Ratios
PEG Ratio-0.10
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
€9.79Price Target Upside0.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Stellantis Business Overview & Revenue Model
Company DescriptionStellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.
How the Company Makes MoneyStellantis generates revenue primarily through the sale of vehicles, including passenger cars, SUVs, and commercial vehicles across its numerous brands. The company also earns income from financing activities, which include providing loans and leasing options to customers and dealers. Additionally, Stellantis benefits from parts and service revenue generated through after-sales activities. Significant partnerships and collaborations with technology and mobility companies enhance its capabilities in electric vehicles and connected services, contributing to its earnings. The ongoing transition to electric and hybrid vehicles is expected to play a crucial role in Stellantis's revenue model, aligning with global trends towards sustainable mobility.
Stellantis Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Negative
The earnings call indicates a challenging first half of 2025 for Stellantis, with significant revenue and cash flow declines due to adverse market conditions, tariffs, and foreign exchange headwinds. However, the company has shown promising signs of recovery with new product launches, increased market share in Europe, and strong liquidity. Despite these positive developments, the lowlights highlight that the challenges outweigh the improvements at this time.Q2-2025 Updates
Positive Updates
New Product Launches
Stellantis launched four new products in H1 2025, including competitive B segment products in Europe such as the Citroën C3 Aircross, Opel Frontera, and Fiat Grande Panda. More new products are expected later in the year, including iconic nameplates and a variety of powertrains.
North America and Europe Market Share
Market share in Europe increased by 1.3 percentage points to 17% in H1 2025 compared to H2 2024. North America's order book improved by 90% year-over-year, driven by better relationship with dealers and new product launches.
Industrial Liquidity and Cash Management
Stellantis' industrial liquidity remained strong at EUR 47 billion, with EUR 31 billion in cash and liquid securities, bolstered by bond issuances of EUR 3.6 billion.
Growth in South America and MEA
Stellantis maintained market share leadership in South America with growth in key markets like Brazil and Argentina. Middle East and Africa showed continued business momentum despite currency headwinds.
Negative Updates
Decline in Net Revenue
Net revenue declined by 13% year-over-year due to adverse regional mix and lower pricing. Consolidated shipments fell 7% with declines in North America and Europe.
Industrial Free Cash Flow Outflow
Stellantis experienced an industrial free cash flow outflow of EUR 3 billion in the first half of 2025, mainly due to low AOI generation and working capital increase.
Tariff and Foreign Exchange Headwinds
Tariffs and foreign exchange challenges negatively impacted AOI, with expected net tariff expense for the year at approximately EUR 1.5 billion. Turkish lira decline also impacted AOI by EUR 600 million.
Challenges in North America and Europe
North America and Europe remain in turnaround phases, with performance impacted by tariffs, lower fleet performance, and lower industry volumes in Europe.
Company Guidance
In the Stellantis Half Year 2025 results call, the company outlined its financial guidance and strategic priorities for the remainder of the year. Stellantis reported that their consolidated shipments fell by 7% to 2.7 million units, with net revenue dropping 13% to EUR 74 billion, largely due to adverse regional mix and lower pricing. The company experienced a significant industrial free cash flow outflow of EUR 3 billion in the first half of 2025. Despite these challenges, Stellantis anticipates a gradual sequential improvement in the second half, driven by new product launches and improved execution. The company expects net revenues to increase, with AOI margins in the low single digits, and improvements in industrial free cash flow. Stellantis is addressing several external factors, such as tariffs and foreign exchange headwinds, and plans to leverage its product wave and new leadership to catalyze growth, particularly in North America and Europe. The company also mentioned the strategic decision to end its fuel cell initiatives in Europe and focus on products with clear market opportunities.Stellantis Financial Statement Overview
Summary
Stellantis shows strong revenue growth and a solid balance sheet, but recent declines in net income and cash flow in 2024 indicate challenges in profitability and cash management.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 146.12B | 156.88B | 189.54B | 179.59B | 149.42B | 86.68B |
| Gross Profit | 11.96B | 20.52B | 38.14B | 35.27B | 29.48B | 10.71B |
| EBITDA | 2.25B | 12.78B | 31.30B | 28.95B | 21.63B | 7.34B |
| Net Income | -2.39B | 5.47B | 18.60B | 16.80B | 14.20B | 29.00M |
Balance Sheet | ||||||
| Total Assets | 200.68B | 207.61B | 202.13B | 186.16B | 171.77B | 99.73B |
| Cash, Cash Equivalents and Short-Term Investments | 32.81B | 37.08B | 48.41B | 50.27B | 51.41B | 24.20B |
| Total Debt | 40.85B | 37.23B | 29.46B | 27.15B | 33.58B | 21.12B |
| Total Liabilities | 127.16B | 125.49B | 120.01B | 113.77B | 115.46B | 73.87B |
| Stockholders Equity | 73.12B | 81.69B | 81.69B | 72.00B | 55.91B | 25.74B |
Cash Flow | ||||||
| Free Cash Flow | -12.97B | -7.05B | 12.29B | 10.95B | 8.53B | 583.00M |
| Operating Cash Flow | -3.17B | 4.01B | 22.48B | 19.96B | 18.65B | 9.18B |
| Investing Cash Flow | -9.64B | -15.98B | -15.05B | -10.53B | 8.67B | -7.92B |
| Financing Cash Flow | 8.27B | 2.06B | -9.20B | -13.17B | -1.37B | 9.09B |
Stellantis Technical Analysis
Positive
9.72
Price Trends
9.33
Positive
8.83
Positive
8.73
Positive
Market Momentum
0.09
Positive
53.23
Neutral
19.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:STLAM, the sentiment is Positive. The current price of 9.72 is below the 20-day moving average (MA) of 9.85, above the 50-day MA of 9.33, and above the 200-day MA of 8.73, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:STLAM.
Stellantis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $75.35B | 35.53 | 43.40% | 0.93% | 9.53% | 12.89% | |
66 Neutral | €5.86B | 11.80 | 8.81% | 4.33% | 1.64% | 14.73% | |
63 Neutral | €35.45B | -11.41 | -3.01% | 7.23% | -17.07% | -118.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
IT:STLAM
Stellantis
9.72
-1.46
-13.08%
IT:RACE
Ferrari
316.30
-85.86
-21.35%
IT:PIRC
Pirelli & C. SpA
5.88
0.72
14.00%
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.