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Stellantis (IT:STLAM)
:STLAM
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Stellantis
(NYSE:STLAM)
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Select Model
Rating:65Neutral
Price Target:
€9.50
▲(1.93% Upside)
Stellantis faces significant challenges with declining revenue and cash flow, as highlighted in the earnings call. While the company has a strong balance sheet and potential for recovery through new products, the current financial and technical indicators suggest caution. The high dividend yield provides some appeal, but the negative P/E ratio reflects ongoing profitability issues.
Positive Factors
Strong Balance Sheet
A strong balance sheet with a high equity ratio provides financial stability and flexibility, enabling Stellantis to invest in growth opportunities and weather economic downturns.
New Product Launches
The introduction of new products can drive revenue growth and market share expansion, particularly in competitive segments, enhancing Stellantis' long-term market position.
AI Integration Partnership
The strategic alliance with Mistral AI to embed AI across operations can improve efficiency, agility, and customer value, positioning Stellantis for future technological advancements.
Negative Factors
Decline in Net Revenue
A significant decline in net revenue indicates challenges in maintaining pricing power and market demand, which could impact long-term profitability and growth.
Industrial Free Cash Flow Outflow
Negative free cash flow suggests potential cash management issues and could limit Stellantis' ability to fund new projects or return capital to shareholders.
Tariff and Foreign Exchange Headwinds
Ongoing tariff and currency challenges can erode margins and competitiveness, posing risks to Stellantis' operational efficiency and market performance.
Stellantis (STLAM) vs. iShares MSCI Italy ETF (EWI)
Market Cap
$34.94B
Dividend Yield7.29%
Average Volume (3M)28.11M
Price to Earnings (P/E)4.5
Beta (1Y)1.66
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. Volume31,007,881
30 Day Avg. Volume28,114,898
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 Cap0.94
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit2.75
Enterprise Value/Ebitda14.63
Forecast
1Y Price Target
$9.04Price Target Upside-2.97% Downside
Rating ConsensusHold
Number of Analyst Covering17
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 primarily generates revenue through the sale of vehicles, including passenger cars and commercial vehicles, across its various brands. The company also earns money from aftermarket services, parts sales, and financing solutions offered to customers. Key revenue streams include vehicle sales to dealerships, direct sales to consumers, and global distribution of vehicles. Additionally, Stellantis benefits from strategic partnerships with other automotive and technology firms, enabling collaborations in electric vehicle development and shared mobility solutions. Factors contributing to its earnings include the growing demand for electric vehicles, cost optimization initiatives, and leveraging economies of scale from its extensive global presence.
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.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 | 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 | 7.61B |
| 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
9.32
Price Trends
8.14
Positive
8.39
Positive
9.38
Negative
Market Momentum
0.18
Negative
68.97
Neutral
95.03
Negative
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 9.32 is above the 20-day moving average (MA) of 8.23, above the 50-day MA of 8.14, and below the 200-day MA of 9.38, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 95.03 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $99.35B | 47.90 | 46.42% | 0.71% | 9.35% | 15.99% | |
76 Outperform | €6.09B | 12.25 | 8.98% | 4.09% | 2.47% | 7.85% | |
65 Neutral | $34.94B | 4.46 | -3.01% | 7.29% | -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
9.33
-1.68
-15.26%
IT:RACE
Ferrari
420.20
6.43
1.55%
IT:PIRC
Pirelli & C. SpA
6.09
1.03
20.39%
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.