One-glance verdict
Undervalued
$59.44 our estimate vs market $4.40
Wall Street consensus: $6.93 (-88.3% lower than our fair-value estimate)
93% below our estimate, below the bear case
Fundamentals snapshot
Stellantis N.V.
STLA · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$4.40
52-week range
$4.30 - $12.22
Market cap
$16.58B
Balance sheet
Distressed
-15.06x Concerning
Net debt $22.68B. 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 car company that owns many well-known brands like Jeep, Ram, Dodge, and Peugeot. It makes money by building and selling these vehicles, which relies on a vast supply chain (the entire network of partners that provide raw materials and parts for manufacturing). This large portfolio of brands allows Stellantis to appeal to many different kinds of customers, which is crucial for competing in the global auto market.
How the company got here
Stellantis was formed in 2021 through the merger of two major automotive players: the French PSA Group, which owned Peugeot and Citroën, and the Italian-American Fiat Chrysler Automobiles (FCA), which had brands like Jeep, Ram, and Fiat. This combination created one of the world's largest automakers, bringing a wide variety of car brands under one roof. The name "Stellantis" comes from the Latin word "stello," which means "to brighten with stars," reflecting the company's ambition to be a major force in the auto industry. The merger was designed to allow the companies to share technology and resources, helping them compete more effectively on a global scale, especially in the race to develop electric vehicles.
What it actually does
Stellantis is in the business of designing, building, and selling a wide range of vehicles all over the world. You've likely seen many of their cars on the road, as they own popular brands like Jeep, Ram, Dodge, Chrysler, Fiat, Peugeot, and Citroën. Their products range from small city cars and family SUVs to heavy-duty pickup trucks and luxury vehicles. Beyond just selling new cars, the company also provides financing and leasing options for customers, sells parts and accessories for its vehicles, and is involved in mobility services like car sharing and rentals.
North America
This is Stellantis's largest and most profitable region, making up a significant portion of its revenue. The key brands driving sales here are Jeep, known for its popular SUVs, and Ram, which sells a successful line of pickup trucks. Dodge and Chrysler also contribute with their muscle cars and minivans. This segment makes money by selling these vehicles to individuals and businesses primarily in the United States and Canada.
Enlarged Europe
This segment is another major pillar for the company, with a strong presence across the European continent. Well-known European brands like Peugeot, Citroën, Opel, Vauxhall, and Fiat are the main players here. The company sells a wide variety of vehicles, from small, fuel-efficient cars popular in European cities to commercial vans for businesses. This part of the business is heavily focused on the transition to electric vehicles to meet regional regulations and consumer demand.
Other Regions
Stellantis also operates in other key markets around the world, including South America, the Middle East, Africa, and the Asia-Pacific region. In South America, particularly Brazil, the Fiat brand has a very strong market position. This segment's performance depends on tailoring vehicles and services to the specific needs and economic conditions of these diverse markets. While smaller than North America and Europe, these regions represent important areas for future growth.
Maserati
This is Stellantis's dedicated luxury brand, known for its high-performance sports cars and premium sedans and SUVs. Maserati operates as a distinct, high-end business, targeting a wealthier customer base with vehicles that emphasize Italian design, performance, and exclusivity. While it represents a small fraction of the company's total vehicle sales, it contributes to the company's overall portfolio by competing in the profitable luxury market.
What management is betting on now
Stellantis is heavily investing in becoming a leader in electric vehicles (EVs) as part of its long-term strategy called "Dare Forward 2030". The company plans to launch dozens of new battery-electric models across its brands in the coming years, aiming for a large percentage of its sales in Europe and the U.S. to be electric by 2030. Another key focus is on developing software and connected-car technologies to offer new features and services to customers. By streamlining its vehicle platforms (the underlying structure of a car) and investing in battery production, management aims to make the company more efficient and profitable as the auto industry shifts towards a more sustainable and tech-focused future.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $59.44 vs current price $4.40
Wall Street consensus is the average analyst price target: $6.93 (-88.3% lower than our fair-value estimate).
Our most-likely fair value is $59.44 a share — about 1,251.0% above today's price of $4.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $22.7B. Interest coverage -15.1x.
Net debt
$22.68B
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 $58.65B 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 $91.09B 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
3.54x
P/B
0.20x
P/S
0.10x
EV/EBITDA
-106.61x
PEG ratio
0.83x
Profitability
How much profit each dollar creates
Gross margin
6.6%
Operating margin
2.2%
Net margin
-12.1%
ROE
-28.7%
ROA
-1.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.84x
Current ratio
1.04x
Quick ratio
0.68x
Total debt
$58.65B
Total cash
$35.97B
Growth
How the business has been compounding
Revenue TTM
$181.09B
Revenue 5Y CAGR
-5.1%
EPS TTM
-7.20
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-5.23B
Free CF TTM
$-15.53B
FCF margin
-8.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2025-04-23