One-glance verdict
Undervalued
$87.26 our estimate vs market $5.56
Wall Street consensus: $6.98 (-92.0% lower than our fair-value estimate)
94% below our estimate, below the bear case
Fundamentals snapshot
Stellantis N.V.
STLA · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$5.56
52-week range
$5.05 - $12.22
Market cap
$20.95B
Balance sheet
Distressed
-15.06x Concerning
Net debt $23.40B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -28.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 11.7% to 2.2% over 3 years.
What this company does
Stellantis N.V.
Stellantis is a massive global automaker that owns a diverse family of well-known car brands, including Jeep, Ram, Chrysler, and Peugeot. It primarily earns money by selling these cars, trucks, and SUVs to customers in North America and Europe. This matters because the company's financial health depends on its ability to appeal to a wide range of buyers and successfully navigate the ups and downs of the global car market.
How the company got here
Stellantis was formed in 2021 through the merger of two large automakers: the French PSA Group and the Italian-American Fiat Chrysler Automobiles (FCA). This combination created one of the world's largest car manufacturers, bringing together a wide range of well-known car brands. The goal of the merger was to combine the strengths of both companies to be more competitive and to share the high costs of developing new technologies like electric cars. The company's roots trace back to the founding of Fiat in 1899 and Peugeot in 1810.
What it actually does
Stellantis designs, manufactures, and sells cars, trucks, and vans for a global market. You would recognize many of their brands, such as Jeep, Ram, Dodge, and Chrysler from the United States, and Peugeot, Citroën, Fiat, and Alfa Romeo from Europe. In addition to selling vehicles, the company also provides financing for customers and dealerships, sells parts and accessories for its vehicles, and offers mobility services like car rentals and sharing. They operate in over 130 countries and have manufacturing plants in 30 countries.
Automotive
This is the company's main business, making up the vast majority of its revenue (the total money it brings in from sales). Stellantis produces and sells a wide variety of vehicles, from small city cars and family SUVs to large pickup trucks and luxury sports cars. Customers range from individuals buying a car for personal use to large companies purchasing a fleet of vans for their business. This part of the business earns money every time a vehicle is sold to a dealership or a large commercial customer.
Maserati
Maserati is Stellantis's dedicated luxury brand, known for its high-performance and stylish Italian sports cars and SUVs. While it represents a small portion of the total vehicles sold, it is a significant part of the company's image and profitability. This segment targets wealthy individuals who are willing to pay a premium for exclusivity, performance, and a prestigious brand name. The company plans to strengthen the Maserati brand by adding new luxury models.
Financial Services
This part of the company helps customers buy and lease Stellantis vehicles. They offer financing plans to individuals and dealerships, making it easier for people to afford a new car and for dealers to manage their inventory. This segment makes money by charging interest on loans and fees for leasing services. It's a way for the company to earn additional revenue from the sale of its vehicles.
Mobility Services
This is a smaller but growing part of Stellantis's business that focuses on new ways for people to get around. It includes services like car sharing and rentals through brands like Free2move. Instead of selling a car once, this segment earns money through short-term rentals or subscriptions. This is part of the company's strategy to adapt to changing transportation trends where some people prefer to pay for using a vehicle rather than owning one.
What management is betting on now
Stellantis is heavily investing in electric vehicles (EVs) and new software for its cars, with a strategic plan called FaSTLAne 2030. A major focus is to have a significant portion of their sales come from electric and low-emission vehicles in the coming years. They are also working on developing new vehicle platforms that can be used for different models and brands, which helps to reduce costs. The company is also forming strategic partnerships to share the costs and accelerate the development of new technologies.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $87.26 vs current price $5.56
Wall Street consensus is the average analyst price target: $6.98 (-92.0% lower than our fair-value estimate).
Our most-likely fair value is $87.26 a share — about 1,469.4% above today's price of $5.56, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $23.4B. Interest coverage -15.1x.
Net debt
$23.40B
Interest coverage
-15.06x
Stellantis N.V.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
STLA
BASELINE
Stellantis N.V.
Total debt $60.51B Interest coverage -15.06x This is the baseline the peer rows are being compared against.
Total debt $128.77B Interest coverage 4.00x This peer still has a real interest-payment cushion, while STLA does not.
Total debt $163.30B Interest coverage -6.88x Neither company has much profit cushion over interest right now.
Total debt $92.13B Interest coverage -4.96x Neither company has much profit cushion over interest right now.
Total debt $5.35B Interest coverage -13.08x Neither company has much profit cushion over interest right now.
Total debt $2.19B Interest coverage -3.10x Neither company has much profit cushion over interest right now.
What you should know
The case for and against STLA
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -28.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 11.7% to 2.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
4.46x
P/B
0.25x
P/S
0.13x
EV/EBITDA
196.44x
PEG ratio
0.97x
Profitability
How much profit each dollar creates
Gross margin
6.9%
Operating margin
2.2%
Net margin
-12.1%
ROE
-28.7%
ROA
-1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.84x
Current ratio
1.04x
Quick ratio
0.68x
Total debt
$60.51B
Total cash
$37.11B
Growth
How the business has been compounding
Revenue TTM
$186.83B
Revenue 5Y CAGR
-5.1%
EPS TTM
-7.84
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-5.40B
Free CF TTM
$-16.02B
FCF margin
-8.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2025-04-23