| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9.70 | -2 |
| Intrinsic value (DCF) | 17.66 | 79 |
| Graham-Dodd Method | 9.40 | -5 |
| Graham Formula | n/a |
Stellantis N.V. (NYSE: STLA) is a leading global automaker formed through the merger of Fiat Chrysler Automobiles and PSA Group in 2021. Headquartered in Hoofddorp, Netherlands, Stellantis operates in the competitive Auto - Manufacturers sector, designing, engineering, and producing a diverse portfolio of vehicles under iconic brands such as Jeep, Ram, Dodge, Peugeot, Citroën, Alfa Romeo, and Maserati. The company serves mainstream, premium, and luxury segments, offering passenger cars, SUVs, pickup trucks, and light commercial vehicles, alongside parts, financing, and leasing services. With a strong presence in North America, Europe, and emerging markets, Stellantis leverages its multi-brand strategy to capture diverse consumer preferences. The company is also investing in electrification and autonomous driving to stay competitive in the evolving automotive landscape. Stellantis’ vertically integrated operations, including metallurgical products (Teksid) and production systems (Comau), provide additional resilience. As one of the world’s largest automakers by revenue, Stellantis plays a critical role in the global automotive supply chain.
Stellantis presents a compelling investment case due to its diversified brand portfolio, strong cash position (~$34.1B), and ongoing cost synergies from the FCA-PSA merger. The company’s revenue ($156.9B in FY 2023) and profitability ($5.47B net income) reflect its scale, though its beta (1.12) indicates moderate volatility relative to the market. Key risks include high total debt ($37.2B), exposure to cyclical auto demand, and execution risks in electrification. The dividend yield (~2.7%) adds appeal, but investors should monitor capital expenditures (-$11.1B) and competitive pressures in key markets. Stellantis’ ability to navigate supply chain disruptions and EV transition will be critical for long-term growth.
Stellantis benefits from a multi-brand strategy that spans luxury (Maserati), premium (Alfa Romeo), and mass-market segments (Fiat, Peugeot), allowing it to compete across price points. Its Jeep and Ram brands dominate the high-margin SUV and truck segments in North America, while Citroën and Peugeot maintain strong European market share. The company’s competitive advantages include economies of scale, a well-diversified geographic footprint, and vertical integration through subsidiaries like Teksid (metallurgy) and Comau (automation). However, Stellantis lags behind pure EV leaders like Tesla in electrification, though it is ramping up investments. Its reliance on internal combustion engines in emerging markets provides near-term stability but poses long-term transition risks. Stellantis’ merger synergies (targeting €5B annually) enhance cost efficiency, but its fragmented brand portfolio may dilute R&D focus compared to more streamlined rivals like Toyota. Pricing power varies by region, with premium brands offsetting margin pressures in mainstream segments.