GICS Sector : Consumer Cyclical
Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide.It provides luxury and premium passenger vehicles; pickup trucks, sport utility vehicles, and commercial vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services.The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, Teksid, and Comau brand names.
Stellantis reported a decline in financial performance in H1 2025, with consolidated shipments falling 7% to 2.7 million units and net revenue declining 13% to EUR 74 billion due to adverse regional mix and lower pricing. The AOI margin was compressed, resulting in an AOI of EUR 540 million with a 0.7% margin. Adjusted diluted earnings per share tracked AOI development, coming in at EUR 0.1842, below estimates of EUR 0.3581. Industrial free cash flow was an outflow of EUR 3 billion.
Publication Date: Aug -01
Despite the challenging financial performance, key commercial KPIs have strengthened, and new products are expected to catalyze growth in H2 2025. The company is reestablishing financial guidance, expecting net revenues to increase half-over-half, AOI margin to be in the low single digits, and improvements in industrial free cash flow. The new leadership team is taking decisive actions, including stopping unprofitable initiatives and launching new products, such as the Citroën C3 Aircross, Opel Frontera, and Jeep Cherokee.
With a P/E Ratio of -9.07 and a P/S Ratio of 0.16, the market is pricing in significant challenges for Stellantis. However, the company's industrial liquidity finished H1 at EUR 47 billion, with EUR 31 billion in cash and liquid securities, indicating a strong balance sheet. The Net Debt / EBITDA ratio stands at 3.4, suggesting a manageable debt burden.
In Europe, Stellantis is turning the corner with new product launches, growing market share, and ramping up Smart Car products. The company is restoring its lineup in North America and Europe by reviving successful nameplates and powertrains, and adopting a multi-energy approach to meet customer demand. The Ram 1500 Express was developed from a dialogue between the brand team and dealers, restoring presence in the entry-level light-duty segment in the U.S.
To boost profitability, Stellantis is taking several actions, including relaunching the SRT division for high-performance products, launching model year '26 products with improved trim lineups, and ramping up Smart Car products in Europe. The company expects an improvement in free cash flow in the second half, despite a breakeven AOI in H1 and a EUR 1.2 billion tariff impact. The H2 guidance represents a significant acceleration, with the company committed to offsetting the tariff impact through volume growth, launches, and cost actions.
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The North American market is relatively mature, and growth is expected to be slightly lower than the global average due to potential trade policy impacts and market saturation. However, the presence of strong brands is expected to support a reasonable growth rate.
The Enlarged Europe segment is expected to grow at a rate slightly below the global average due to the ongoing economic challenges in some European countries and the impact of regulatory changes on the automotive industry.
South America is expected to grow at a higher rate than the global average, driven by increasing demand for vehicles in key markets like Brazil, assuming economic stability improves.
The Middle East and Africa segment is expected to grow at a rate higher than the global average, driven by infrastructure development and increasing vehicle demand in certain markets, despite potential volatility due to geopolitical factors.
The 'Other' segment is assumed to grow at the global average rate, as it encompasses diverse operations that may not have a clear growth trajectory different from the overall company average.
The China and India & Asia Pacific segment is expected to be a strong growth driver, with increasing demand for vehicles and components, driven by economic growth and urbanization.
Maserati is expected to grow at a higher rate than the global average, driven by increasing demand for luxury vehicles and the brand's strategic positioning in key markets.
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A range of passenger cars offering innovative design, advanced technology, and sustainable mobility solutions.
A lineup of passenger cars focusing on comfort, safety, and innovative features.
A range of passenger cars offering German engineering, innovative technology, and affordable prices.
A lineup of passenger cars known for their Italian design, fuel efficiency, and affordability.
A range of rugged and capable SUVs offering off-road expertise and adventure capabilities.
A lineup of pickup trucks offering power, durability, and advanced technology.
A range of genuine parts and accessories for Stellantis vehicles, offering quality and reliability.
A suite of mobility solutions offering car-sharing, rental, and subscription services.
A range of mobility services offering car-sharing, bike-sharing, and scooter-sharing solutions.
Stellantis N.V. faces moderate threat from substitutes, as customers have limited alternatives to traditional vehicles. However, the growing popularity of electric vehicles and ride-hailing services poses a moderate threat to the company's market share.
Stellantis N.V. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diverse product offerings and strong brand reputation limit customers' ability to negotiate prices.
Stellantis N.V. relies on a large network of suppliers for components and raw materials. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and delivery terms, particularly for critical components.
The automotive industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for extensive distribution networks. These barriers limit the threat of new entrants to Stellantis N.V.'s market share.
The automotive industry is highly competitive, with several established players vying for market share. Stellantis N.V. faces intense rivalry from companies like Toyota, Volkswagen, and General Motors, which may lead to pricing pressure and increased marketing expenses.
| Value | |
|---|---|
| Debt Weight | 26.51% |
| Debt Cost | 3.87% |
| Equity Weight | 73.49% |
| Equity Cost | 10.63% |
| WACC | 8.84% |
| Leverage | 36.07% |
Value: 9.1
Growth: 5.6
Quality: 2.5
Yield: 8.8
Momentum: 6.5
Volatility: 5.7
1-Year Total Return ->
Value: 10.0
Growth: 3.6
Quality: 2.4
Yield: 10.0
Momentum: 5.0
Volatility: 7.0
1-Year Total Return ->
Value: 8.9
Growth: 4.9
Quality: 3.3
Yield: 10.0
Momentum: 3.5
Volatility: 7.3
1-Year Total Return ->
Value: 7.7
Growth: 3.3
Quality: 7.3
Yield: 0.6
Momentum: 1.5
Volatility: 8.0
1-Year Total Return ->
Value: 9.6
Growth: 4.9
Quality: 5.8
Yield: 5.0
Momentum: 1.0
Volatility: 2.0
1-Year Total Return ->
Value: 0.7
Growth: 7.7
Quality: 7.2
Yield: 1.2
Momentum: 3.5
Volatility: 4.7
1-Year Total Return ->