Stellantis Nv Stock Fair Value Calculation – Stellantis to Make Job Cuts in U.S. Jeep Plants Due to Emissions Regulations and Falling Sales

December 9, 2023

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STELLANTIS NV ($NYSE:STLA) is a major automotive company formed from the merger of two major automakers, Fiat Chrysler Automobiles and PSA Group. The company has recently announced that it will be making job cuts at two of its Jeep plants in the United States as a result of declining sales and stricter emissions regulations. This decision will affect both workers and management at the two plants in question. The primary cause for this decision is the new stricter emissions regulations that have been implemented in the United States. In order to comply with these regulations, Stellantis has had to invest heavily in new technology and processes.

This has increased their costs and reduced their profits, leading to a decrease in sales and ultimately a need to reduce their workforce. In addition to the stricter emissions regulations, declining sales in the Jeep brand have also contributed to this decision. They have had to invest heavily in new technology and processes due to stricter emissions regulations, while at the same time dealing with declining sales of their Jeep vehicles. Ultimately, this decision will have an impact on both workers and management at the two plants in question.

Price History

On Friday, STELLANTIS NV stock opened at $22.5 and closed at $22.6, up by 0.2% from prior closing price of 22.6. This move is aimed at cutting costs and improving efficiency in manufacturing operations. The exact number of job cuts has not been disclosed yet, but it is expected to impact thousands of jobs across the country. The company is facing increasing pressure from emissions regulations which are driving up the costs of production and have also caused a decline in sales of Jeep models.

To address this, the company has taken steps to improve efficiency in its manufacturing operations in order to reduce costs and remain competitive in the market. The job cuts will allow the company to reduce its operational costs, while still continuing to meet the new emissions regulations. It remains to be seen how this move will impact STELLANTIS NV’s stock price in the long run, but in the short term it appears to have had a minimal impact on the share price. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Stellantis Nv. More…

    Total Revenues Net Income Net Margin
    189.96k 19.76k 11.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Stellantis Nv. More…

    Operations Investing Financing
    23.51k -11.78k -7.58k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Stellantis Nv. More…

    Total Assets Total Liabilities Book Value Per Share
    198.57k 121.51k 24.62
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Stellantis Nv are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    28.6% 196.2% 12.8%
    FCF Margin ROE ROA
    7.6% 20.4% 7.6%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
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  • Analysis – Stellantis Nv Stock Fair Value Calculation

    At GoodWhale, we have conducted an in-depth analysis of the fundamentals of STELLANTIS NV. Our proprietary Valuation Line has determined an intrinsic value of around $19.8 for each share of STELLANTIS NV. Currently, the stock is trading at $22.6, which is 14.1% higher than the estimated intrinsic value. This means that the stock is currently fairly priced, but slightly overvalued. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The competition between Stellantis NV and its competitors is fierce. Ford Motor Co, General Motors Co, and Toyota Motor Corp are all fighting for market share in the automotive industry. Stellantis NV is a new player in the game, but it is quickly making a name for itself. The company has already established itself as a force to be reckoned with in the European market, and it is now looking to make inroads in the United States and China.

    – Ford Motor Co ($NYSE:F)

    Ford Motor Company is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 32% stake in Jiangling Motors of China. It also has joint-ventures in China, Taiwan, Thailand, Turkey, and Russia. The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.

    As of 2022, Ford Motor Company has a market capitalization of $47.56 billion and a return on equity of 23.7%. The company has been in operation for over a century and continues to be a leading player in the global automotive industry. Ford’s products are sold in over 200 markets around the world and the company has a strong presence in both developed and emerging markets.

    – General Motors Co ($NYSE:GM)

    General Motors Co., commonly referred to as GM, is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services.

    As of 2020, GM had a market capitalization of $48.95 billion. This is down from $52.6 billion in 2019. GM’s return on equity was 10.52% in 2020. This is down from 11.92% in 2019.

    GM’s decline in market capitalization and ROE can be attributed to a variety of factors, including the COVID-19 pandemic. The pandemic caused a decrease in demand for vehicles, which led to a decrease in GM’s sales and revenue. The decrease in sales and revenue caused GM’s stock price to decline, which in turn led to a decrease in market capitalization. The pandemic also caused GM to incur additional costs, which led to a decline in profits and ROE.

    – Toyota Motor Corp ($TSE:7203)

    Toyota Motor Corp is one of the largest automakers in the world with a market cap of 27.37T as of 2022. It has a Return on Equity of 11.32%. Toyota is known for its quality vehicles and its commitment to innovation. The company is headquartered in Japan and has operations all over the world. Toyota is a leader in the automotive industry and its products are in high demand. The company’s strong financial position and commitment to innovation make it a great investment.

    Summary

    Stellantis NV is a global automotive company formed from a merger of Fiat Chrysler Automobiles and PSA Group. The company has recently announced plans to cut jobs at two of its U.S. Jeep plants due to increased emissions regulations, as well as to reduce costs amidst declining sales. Investors may find that the cost-cutting measures could improve earnings and cash flow in the short term, while the long-term prospects of the company will depend on its ability to effectively transition to more environmentally sustainable products and services. Additionally, investors should consider the potential impact from increased competition in the automotive sector, as well as any potential expansion opportunities with the company’s new global reach.

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