Stellantis $STLAM (-0.66%) is the fourth largest car manufacturer in the world, created in 2021 from the merger of PSA (Peugeot, Citroën, Opel) and FCA (Fiat, Chrysler, Jeep, Dodge). The group comprises 14 well-known brands such as Jeep, RAM, Peugeot, Fiat, Opel, Alfa Romeo, Maserati and more.
🌱 1. electromobility: offensive in full swing
- Target: 100% BEV sales in Europe by 2030, 50% in the USA
- Over 75 new all-electric models planned by 2030 (including Jeep Recon, Ram 1500 REV, Peugeot e-3008)
- In-house battery production by ACC (Automotive Cells Company) with TotalEnergies and Mercedes
Advantage: In contrast to pure EV start-ups, Stellantis already has strong cash flows, experience in large-scale production and a dealer network worldwide.
💰 2. financially solid & high margins
- High operating margin: 12.8% in 2024 despite difficult market conditions
- Strong balance sheet: net cash of over € 20 billion, hardly any debt
- Attractive dividend: ~6% dividend yield (depending on share price)
- Share buybacks: billion-euro programs to support the share price
🌍 3. global diversification
- Sales come from Europe, North America, Latin America and Asia
- Particularly strong market position in the USA (Jeep, RAM) and South America (Fiat)
- Planned expansion in India, Africa and Asia (growth markets!)
🧠 4. software & digitalization as growth drivers
- Target: € 20 billion in software sales by 2030
- Cooperation with Amazon (cockpit integration), Foxconn (chips), Qualcomm (Snapdragon chips)
- Over-the-air updates, new digital business models and subscription services
🔧 5. lean & efficient - leadership with industry experience
- CEO Carlos Tavares known for cost discipline and successful restructuring
- Merger implemented efficiently: Billions in synergy effects realized
- No bloated structure as with other groups
📉 Valuation: favorable in comparison
- P/E ratio (2025e): below 4 (!) → strongly undervalued compared to Tesla, VW & Co.
- P/E ratio: around 0.3 - the market is hardly pricing in any growth
- Value play with tech and growth options
Conclusion: Why I am optimistic
Stellantis is a value stock with massive opportunities in e-mobility, software and new markets. Compared to other car manufacturers, Stellantis is extremely financially stable and has a proven management team that delivers.
The cyclical nature of the industry and geopolitical uncertainties remain risk factors - but a lot is already priced in at the current valuation.
Unfortunately, I got in too early and am currently down 50%. What do you think of the share?
