Following a rebound in 2022 performance, Stellantis (NYSE:STLA) aims to distribute a massive $4.47 billion as dividends to its shareholders (subject to approval). Furthermore, the company’s board has approved a share buyback program of up to $1.5 billion to be executed through December 2023.
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Stellantis is a global automaker that owns some well-known brands, including Chrysler, Fiat, Jeep, and Ram.
Stellantis’ cash generation in 2022 was eye-catching. It witnessed a 78% jump in annual industrial free cash flow, to €10.8 billion from €6.07 billion in 2021. The FCF gain was driven by a strong contribution from €7.1 billion of net cash synergies.
Overall, the company’s performance in 2022 was nothing short of impressive. Stellantis delivered a 2022 net profit of €16.8 billion, which rose 26% from 2021. Also, net revenue came in at €179.6 billion and increased by 18% year-over-year. The upbeat performance was due to a 41% jump in global battery electric vehicle sales to 288,000 vehicles in 2022.
Coming to future plans, Stellantis targets to more than double its EV offerings across all markets to 47 by the end of 2024. It expects current-year sales to increase globally as supply chain problems and shortages of semiconductors continue to ease.
Is STLA a Buy or Sell?
Stellantis has a Moderate Buy consensus rating on TipRanks. This is based on eight Buy and three Hold recommendations. The average price target of $20.11 implies 16.4% upside potential from current levels. STLA stock is up 18.4% in 2023 so far.
On a positive note, STLA stock has a maximum Smart Score of “Perfect 10” on TipRanks. Note that shares with a “Perfect 10” Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin.
