There has been very little movement in Stellantis N.V.'s share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● Its low valuation, with P/E ratio at 2.92 and 3.34 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company shows low valuation levels, with an enterprise value at 0.12 times its sales.
● The company appears to be poorly valued given its net asset value.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● The company is one of the best yield companies with high dividend expectations.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Stellantis N.V. is one of the world's leading car manufacturers. The activity is essentially organized around 4 sectors:
- sales of passenger cars and light commercial vehicles: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys brands;
- sale of luxury vehicles: Maserati and DS Automobiles brands;
- sale of automotive equipment: interior systems, car seats, car exteriors, emission control systems, etc.;
- other: sales financing services (purchase, rental, leasing, etc.), after-sales services, etc.; - other: sales financing services (purchase, rental, leasing, etc.).
Net sales are distributed geographically as follows: the Netherlands (0.8%), North America (46.7%), France (9.5%), Brazil (7.3%), Italy (6.2%), Germany (5.5%), the United Kingdom (4.4%), China (0.6%) and other (19%).