Stellantis (STLAM) AI Stock Analysis

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IT:STLAM Dividends

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Stellantis

(NYSE:STLAM)

64Neutral

Stellantis is facing challenges with declining financial metrics and technical indicators showing short-term bearish trends. However, its strong valuation and strategic steps in inventory management and new product launches provide a positive outlook. The high dividend yield further enhances its appeal to income investors, balancing some of the risks from recent financial underperformance.

Positive Factors

Dividends

The analyst retains a Buy rating and raises the income rating in expectation of dividend growth.

Inventory Levels

Vehicle inventories fell to 1.12 million units, better than expected, offering room to grow shipments.

Valuation

Stellantis trades at a forward P/E of 5.0x/3.9x, which is a discount to key US peers and below European peer Renault.

Negative Factors

Cost Management

Higher industrial costs were primarily due to poor fixed cost absorption and higher warranty costs in North America.

Leadership

Stellantis now lacks a CEO, while attempting to manage more tariff risk than GM or Ford.

Market Share

Stellantis continues to lose market share, with a new reduction in inventories and small increase in still high incentives.

Stellantis (STLAM) vs. S&P 500 (SPY)

Market Cap

$28.73B

Dividend Yield18.11%

Average Volume (3M)27.02M

Price to Earnings (P/E)4.1

Beta (1Y)1.60

Revenue Growth-17.23%

EPS Growth-69.52%

CountryIT

Employees248,243

SectorConsumer Cyclical

Sector Strength58

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)0.60

Shares Outstanding2,880,492,200

10 Day Avg. Volume38,435,016

30 Day Avg. Volume27,020,145

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.20

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.60

Price Target Upside39.89% Upside

Rating ConsensusHold

Number of Analyst Covering19

Stellantis Business Overview & Revenue Model

Company DescriptionStellantis N.V. (STLAM) is a leading global automotive manufacturer, formed through the merger of Fiat Chrysler Automobiles (FCA) and PSA Group. The company operates across multiple sectors, including the design, manufacture, and sale of automobiles, light commercial vehicles, and mobility solutions. Stellantis offers a diverse portfolio of iconic brands such as Peugeot, Citroën, Jeep, Ram, Fiat, Opel, and Alfa Romeo, catering to a wide range of customer needs and preferences across various markets.

How the Company Makes MoneyStellantis generates revenue primarily through the sale of vehicles, parts, and services across its wide array of brands. The company earns money by designing, manufacturing, and selling new vehicles directly to consumers through its network of dealerships and distributors around the world. Additionally, Stellantis generates revenue from the sale of automotive parts and accessories, as well as through its after-sales services such as maintenance and repairs. The company also benefits from strategic partnerships and joint ventures, particularly in emerging markets, which help to expand its market reach and contribute to its overall earnings. Furthermore, Stellantis is investing in the development of electric and hybrid vehicles, aiming to capture a share of the growing demand for sustainable mobility solutions.

Stellantis Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
221.78B	156.88B	189.54B	179.59B	149.42B	86.68B
	Gross Profit
40.29B	20.52B	38.14B	35.27B	29.48B	10.71B
	EBIT
20.48B	3.69B	22.38B	20.01B	15.13B	4.14B
	EBITDA
29.13B	12.78B	31.30B	27.49B	21.77B	5.48B
	Net Income Common Stockholders
17.13B	5.67B	18.60B	16.80B	14.20B	29.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.70B	37.08B	47.16B	50.27B	51.41B	24.20B
	Total Assets
73.44B	207.61B	202.13B	186.16B	171.77B	99.73B
	Total Debt
20.80B	37.23B	29.46B	27.15B	33.58B	21.12B
	Net Debt
8.84B	3.13B	-14.21B	-19.28B	-16.05B	-2.73B
	Total Liabilities
60.98B	125.49B	120.01B	113.77B	115.46B	73.87B
	Stockholders Equity
11.54B	81.69B	81.69B	72.00B	55.91B	25.74B
Cash Flow		Free Cash Flow
4.21B	-7.05B	12.29B	10.95B	8.53B	583.00M
	Operating Cash Flow
18.53B	4.01B	22.48B	19.96B	18.65B	9.18B
	Investing Cash Flow
-22.19B	-15.98B	-15.05B	-10.53B	8.67B	-7.92B
	Financing Cash Flow
-11.32B	2.06B	-9.20B	-13.17B	-1.37B	9.09B

Stellantis Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.29

Price Trends

50DMA

11.16

Negative

100DMA

11.88

Negative

200DMA

13.06

Negative

Market Momentum

MACD

-0.96

Positive

RSI

31.01

Neutral

STOCH

38.20

Neutral

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 8.29 is below the 20-day moving average (MA) of 9.40, below the 50-day MA of 11.16, and below the 200-day MA of 13.06, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 38.20 is Neutral, 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 (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RACE	78 Outperform	$93.83B	45.59	46.77%	0.60%	11.85%	22.61%
TEN	69 Neutral	€17.17B	8.71	12.04%	4.29%	-15.83%	-45.83%
STLAM	64 Neutral	$28.73B	4.13	6.77%	18.11%	-17.23%	-69.52%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%

* Consumer Cyclical Sector Average

Performance Comparison

IT:STLAM

Stellantis

7.71

-13.68

-63.95%

IT:TEN

Tenaris

14.54

-2.35

-13.89%

IT:RACE

Ferrari

386.00

-8.80

-2.23%

Stellantis Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -33.05% | Next Earnings Date: Jul 24, 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.

Highlights

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.

Lowlights

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.