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Stock Analysis & ValuationStellantis N.V. (8TI.DE)

Professional Stock Screener
Previous Close
8.28
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)7.70-7
Intrinsic value (DCF)15.7390
Graham-Dodd Method8.12-2
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Stellantis N.V. (8TI.DE) is a leading global automotive manufacturer headquartered in Hoofddorp, Netherlands, formed through the merger of Fiat Chrysler Automobiles and PSA Group in 2021. The company designs, engineers, manufactures, and distributes a diverse portfolio of automobiles and light commercial vehicles under iconic brands such as Jeep, Ram, Peugeot, Citroën, Alfa Romeo, Maserati, and Opel. Stellantis operates across multiple segments, including luxury, premium, and mass-market vehicles, as well as mobility services and parts distribution. With a strong presence in Europe, North America, and emerging markets, the company leverages its extensive brand portfolio and manufacturing footprint to drive innovation in electric vehicles (EVs) and sustainable mobility. Stellantis is a key player in the Consumer Cyclical sector, benefiting from economies of scale and a multi-brand strategy that caters to diverse customer preferences worldwide.

Investment Summary

Stellantis presents a compelling investment case due to its diversified brand portfolio, strong market presence in Europe and North America, and aggressive push into electrification. The company reported €156.9 billion in revenue and €5.5 billion in net income for the latest fiscal year, supported by robust demand for SUVs and commercial vehicles. However, risks include high total debt (€37.2 billion) and exposure to cyclical auto demand. Stellantis’s beta of 1.121 suggests moderate volatility relative to the market. The dividend yield (~2.3% based on €0.68/share) adds income appeal, while its €34.1 billion cash position provides financial flexibility. Investors should monitor EV adoption rates and competitive pressures in key markets.

Competitive Analysis

Stellantis benefits from a multi-brand strategy that spans luxury (Maserati), premium (Alfa Romeo), and mass-market (Fiat, Peugeot) segments, giving it broad consumer reach. Its competitive advantage lies in economies of scale, with shared platforms and technology across brands reducing R&D and production costs. The company’s stronghold in Europe (via Peugeot, Citroën) and North America (via Jeep, Ram) provides geographic diversification. However, Stellantis lags behind pure EV leaders like Tesla in battery technology and software integration. Its electrification strategy relies heavily on partnerships (e.g., with Samsung SDI for battery plants). In commercial vehicles, Stellantis competes effectively with Ford and Volkswagen but faces pricing pressure in emerging markets. The merger synergies (targeting €5+ billion annually) are a key differentiator, though integration risks persist. Stellantis’s reliance on internal combustion engine (ICE) profits during the EV transition could be a long-term vulnerability if regulatory shifts accelerate.

Major Competitors

  • Volkswagen AG (VOW3.DE): Volkswagen leads in European market share and EV sales (ID. series), with stronger China exposure than Stellantis. Its weakness includes higher labor costs and reliance on China for growth. VW’s scale in EVs and autonomous tech is superior, but Stellantis has better North American positioning.
  • Ford Motor Company (F): Ford dominates the U.S. truck market (F-Series) and is investing heavily in EVs (Mustang Mach-E). It lacks Stellantis’s European footprint but has a stronger commercial vehicle division. Ford’s weaker profitability and restructuring costs are relative disadvantages.
  • Toyota Motor Corp (TM): Toyota excels in hybrid technology and reliability, with a weaker EV portfolio than Stellantis. Its global supply chain efficiency is unmatched, but Stellantis’s multi-brand approach offers more pricing flexibility. Toyota’s conservative EV strategy may lag in regulatory-driven markets.
  • Tesla Inc (TSLA): Tesla leads in EV technology, software, and vertical integration, with higher margins than Stellantis. However, Stellantis’s broader brand portfolio and dealer network provide wider market access. Tesla’s limited presence in commercial vehicles and emerging markets are gaps.
  • Bayerische Motoren Werke AG (BMW.DE): BMW’s luxury focus (BMW, Mini, Rolls-Royce) contrasts with Stellantis’s mass-market strength. BMW leads in premium EV adoption (i-series) but lacks Stellantis’s scale in SUVs and light trucks. Stellantis’s cost structure is more competitive for volume segments.
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