Daily Stock Analysis: Stellantis

By Fredrik Arnold

Tuesday, June 28, 2022 6:30 AM EDT

Stellantis NV. Known by the ticker symbol (STLA), the Corporation is a large-cap automobile manufacturer operating in the consumer cyclical business sector. This is my first report on Stellantis NV for my Viital portfolio, or any of my previous 6 folios.

Image: Stellantis

Stellantis NV was formed on Jan. 16, 2021, from the merger of Fiat Chrysler Automobiles and PSA Group.

The combination of the two companies created the world’s fourth-largest automaker, with 14 automobile brands. In 2021, forma Stellantis had sales volume of 6.1 million vehicles and EUR 152.1 billion in revenue, albeit substantially affected by the microchip shortage.

Europe is Stellantis' largest market, accounting for 47% of 2021 global volume while North America and South America were 30% and 14%, respectively.

The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Fiat Professional, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, Teksid, and Comau brand names.

It sells its products directly, as well as through distributors and dealers. Stellantis N.V. was founded in 1899 and is headquartered in Hoofddorp, the Netherlands.

Three key data points gauge any dividend equity or fund such as Stellantis NV.

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

STLA Price

Sellantis’s ’s price per share was $13.08 as of yesterday's market close. One year ago its price was $29.16. Therefore, Stellantis’s share price fell $16.08 or about 53% in the past year.

If Stellantis’s stock trades in the range of $10.00 to $24.00 this next year, its recent $13.08 share price might rise by $6.92 to reach $20.00 by June 28, 2023. My $6.92 upside estimate is $2.39 under the median of one year price estimates from six analysts.

STLA Dividends

Stellantis’s most recently declared annual dividend of $1.12 was paid April 29, 2022 to shareholders on record as of April 19th.

STLA has paid variable annual dividends since May 2019. The current dividend delivers 8.56% in annual yield per yesterday’s $13.08 share price.

STLA Returns

Adding the $1.12 STLA annual dividend to my estimated one-year price upside estimate of $6.92 shows a $8.04 potential gross gain, per share, to be reduced by any costs to trade STLA shares.

At yesterday's $13.08 closing price per share, a little under $1000 would buy 76 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.13 per share.

Subtract that maybe $0.13 brokerage cost from my estimated $8.04 gross gain estimate per share results in a net gain of $7.91 X 76 shares = $601.16 for a 60.12% net gain including an 8.56% forward looking annual dividend yield.

So it is that Stellantis NV shows a possible 60.12% net gain including an 8.56% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Stellantis NV shares could generate $85.60 in cash dividends. Of course, a single share of STLA stock bought at yesterday's $13.08 price is over six and one half times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up STLA shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 6.54 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Stellantis NV. Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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