STLA - Stellantis: Poised For Large Returns

2024-06-26 04:34:26 ET

Summary

• Stellantis has struggled over the past year, with the price falling from $30 at its high to $20 today.
• The company generates tremendous amounts of operating income and free cash flow and maintains a large cash pile.
• The market is ignoring how cheap Stellantis is while management is navigating short-term troubles in the business.

Investment Thesis:

Stellantis ( STLA ) is a global automaker which designs, engineers, manufactures, distributes, and sells automobiles across the world. Stellantis was formed as a result of a merger between Peugeot ((PSA)) and Fiat Chrysler ((FCA)) in 2021. The prominent brands that Stellantis owns are Maserati, Alfa Romeo, Jeep, Doge, Ram, Chrysler, Citroën, Fiat, Opel, Peugeot, and a few more smaller names. Evidently, Stellantis owns a myriad of automobile brands that have widespread notoriety, primarily across the regions of North America, Europe, and the Middle East....

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