Stellantis N.V. (STLA, Financial) and Factorial Energy have successfully validated the performance of Factorial's FEST (Factorial Electrolyte System Technology) solid-state battery cells designed for automotive use. This milestone represents a crucial advancement in the development of next-generation batteries for electric vehicles (EVs).
The collaboration with Factorial has propelled Stellantis to the forefront of the solid-state battery scene, as the newly validated cells promise lighter, more efficient, and potentially cost-effective solutions for EV manufacturers. This development is a key step toward bringing these advanced battery technologies to market, aligning with Stellantis's strategic goals in the EV sector.
Stellantis's Chief Engineering and Technology Officer emphasized the importance of this breakthrough and noted that the partnership with Factorial will continue to explore further innovations. The focus remains on pushing technological boundaries to not only enhance battery performance but also reduce costs for consumers in the long run.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Stellantis NV (STLA, Financial) is $14.79 with a high estimate of $19.54 and a low estimate of $7.93. The average target implies an upside of 65.48% from the current price of $8.94. More detailed estimate data can be found on the Stellantis NV (STLA) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Stellantis NV's (STLA, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Stellantis NV (STLA, Financial) in one year is $18.14, suggesting a upside of 102.91% from the current price of $8.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Stellantis NV (STLA) Summary page.
STLA Key Business Developments
Release Date: February 26, 2025
- AOI Margin: Ended at the bottom of the 5.5% to 7% range.
- Industrial Free Cash Flow: Negative EUR6 billion, closer to the better end of the negative EUR5 billion to negative EUR10 billion guidance range.
- Consolidated Shipments: 5.4 million vehicles, down 12% or 750,000 units.
- Net Revenues: EUR157 billion, declined 17%.
- Adjusted Diluted Earnings Per Share: EUR2.48, declined 61%.
- Adjusted Operating Income (AOI): EUR8.6 billion, down from EUR24.3 billion in 2023.
- Inventory Reduction: US dealer stock reduced from 430,000 to 304,000 units.
- FX Headwinds: Negative EUR3.6 billion impact.
- Dividend: Proposed EUR0.68 per share, totaling EUR1.7 billion.
- Liquidity Ratio: 32%, slightly above the 25% to 30% target.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Stellantis NV (STLA, Financial) has launched 30 new products between 2024 and 2025, aiming to regain market share and drive growth.
- The company has successfully reduced US dealer inventories from 430,000 units to 304,000 units, improving inventory management.
- Stellantis NV (STLA) is focusing on regional empowerment, allowing decisions to be made closer to customers and improving responsiveness.
- The company is committed to returning to positive industrial free cash flow in 2025, with expectations of significant improvement in the second half of the year.
- Stellantis NV (STLA) is transitioning to quarterly reporting by 2026, enhancing transparency and facilitating better comparisons with peers.
Negative Points
- Stellantis NV (STLA) experienced a 17% decline in net revenues for 2024, driven by lower shipment volumes and FX headwinds.
- The company reported a steep decline in adjusted operating income, from EUR24.3 billion in 2023 to EUR8.6 billion in 2024.
- Stellantis NV (STLA) faced a negative industrial free cash flow of EUR6 billion in 2024, impacted by lower AOI and increased working capital.
- The company has lost market share in both Europe and North America since its creation, with a 5% decline in each region.
- Stellantis NV (STLA) had significant one-time charges in 2024, including EUR1.6 billion in restructuring charges and EUR800 million related to the Takata airbag recall.
