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Stellantis (IT:STLAM)
:STLAM
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Stellantis
(NYSE:STLAM)
Rating:70Outperform
Price Target:
€9.50
▲(16.28%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.
Operational Improvements
Product launch delays are easing in Europe, suggesting operational improvements.
Strategic Options
Strategic options under consideration, such as restructuring the brand portfolio or splitting the group, could support future valuation.
Negative Factors
Earnings Risk
There is significant risk to earnings estimates for 2025 and 2026, with expectations much lower than consensus.
Market Position Concerns
Concerns are growing over Stellantis' positioning in Europe, particularly in the electric vehicle market against rising competition.
Tariff Challenges
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
$29.98B
Dividend Yield8.5%
Average Volume (3M)21.74M
Price to Earnings (P/E)4.4
Beta (1Y)1.59
Revenue Growth-17.23%
EPS Growth-69.52%
CountryIT
Employees248,243
SectorConsumer Cyclical
Sector Strength65
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.60
Shares Outstanding2,880,492,200
10 Day Avg. Volume22,509,178
30 Day Avg. Volume21,742,340
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.29
Price to Sales (P/S)0.00
P/FCF Ratio-2.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.59Price Target Upside17.35% Upside
Rating ConsensusHold
Number of Analyst Covering18
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, 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:Feb 26, 2025
(Q4-2024)
| % Change Since: -34.02%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging year for Stellantis, with significant declines in financial and operational metrics. However, the company has taken strategic steps to address these challenges, such as successful inventory management and the launch of new products. While there are positive developments, particularly in inventory management and new product introductions, the substantial financial declines and cash outflow weigh heavily on the overall sentiment.Q4-2024 Updates
Positive Updates
Successful Inventory Management
Stellantis successfully reduced US dealer stock from 430,000 units at midyear to 304,000 units by year-end, below the target of 330,000 units, showcasing effective inventory discipline.
Exciting New Product Launches
The company launched several new models, including the Citroen C3, Dodge Charger, Jeep Wagoneer S, Citroen C3 Aircross, Opel Frontera, and Fiat Grande Panda, aiming to boost market presence.
Commitment to Shareholder Returns
Despite a challenging year, Stellantis executed its capital return plan with a proposed dividend of EUR 0.68 per share, totaling EUR 1.7 billion, supplemented by a EUR 300 million transaction value from Comau.
Positive Steps in China
Stellantis' partnership with Leapmotors is promising, with Leapmotors reaching profitability in Q4 2024 and doubling sales to 300,000 units.
Negative Updates
Decline in Key Financial Metrics
AOI margin ended at 5.5%–7%, net revenues declined 17% to EUR 157 billion, and adjusted diluted earnings per share fell 61% to EUR 2.48.
Significant Cash Outflow
Industrial free cash flow saw a negative outflow of EUR 6 billion, impacted by lower AOI and increased working capital.
Decline in Vehicle Shipments
Consolidated shipments fell by 750,000 units, or 12%, due to inventory reduction actions and lower sales.
Maserati Impairment
A EUR 1.2 billion impairment was recognized for Maserati, reflecting slower-than-expected market dynamics and electrification transition.
Company Guidance
In the Stellantis Full Year 2024 results call, the company provided several key financial metrics and guidance for 2025. The Adjusted Operating Income (AOI) margin for 2024 was at the lower end of the expected 5.5% to 7% range, while industrial free cash flow was negative EUR6 billion, near the better end of the negative EUR5 billion to negative EUR10 billion guidance. Consolidated shipments were 5.4 million vehicles, reflecting a 12% decrease, influenced by inventory reduction and lower sales. Net revenues fell 17% to EUR157 billion, with a 61% decline in adjusted diluted earnings per share to EUR2.48. For 2025, Stellantis expects gradual improvement with a mid-single-digit AOI margin, positive industrial free cash flow in the second half, and enhanced focus on inventory discipline, market coverage, and competitiveness. The company also plans to transition to quarterly reporting by the first quarter of 2026, aiming for better transparency and comparison with peers.Stellantis Financial Statement Overview
Summary
Stellantis shows strong equity levels and consistent revenue growth historically. However, 2024 revealed challenges with decreased profitability and negative cash flow, suggesting issues with cost management and cash utilization.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 | 37.08B | 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
8.17
Price Trends
8.78
Negative
9.05
Negative
10.30
Negative
Market Momentum
-0.09
Positive
43.12
Neutral
16.77
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 8.17 is below the 20-day moving average (MA) of 8.49, below the 50-day MA of 8.78, and below the 200-day MA of 10.30, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 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 (64)
Financial Indicators
Performance Comparison
IT:STLAM
Stellantis
8.17
-8.89
-52.09%
RACE
Ferrari
506.19
93.04
22.52%
DE:2PI
Pirelli & C. SpA
5.78
0.32
5.86%
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.