STELLANTIS

Analysis of Stellantis share price

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Would you like to invest in the stock of Stellantis Group, the result of the merger between PSA and Fiat-Chrysler? In that case, we suggest you learn more about this new entity which is positioned among the leaders in its sector of activity in the world. Indeed, we will present you here in detail this company, its main activities and sources of income but also its main adversaries and competitors or its strategic partnerships. Of course, we will also take a close look at the fundamental analysis of this stock with the elements to be taken into account for their impact on the share price.

Elements that can influence the price of this asset:

Analysis N°1

It will of course be necessary to follow the evolution of demand from the car market with figures on new registrations and the new and used car market.

Analysis N°2

Of course, changes in regulations concerning polluting vehicles and state subsidies for the purchase of cleaner vehicles must be studied closely in order to understand how Stellantis can position itself in the market.

Analysis N°3

It goes without saying that you will also need to carry out a thorough study of the competition in the automotive manufacturing sector and take into account the news of the main competitors that may influence the sector as a whole.

Analysis N°4

The future strategic alliances and other partnerships that the Stellantis Group is likely to set up may also have an influence on its growth and therefore on its share price.

Analysis N°5

Finally, we must also take into account the financial publications of the Stellantis group, in particular the annual and quarterly results of the group, which must be compared with the forecasts of analysts and the objectives set by the group within the framework of its strategic development plans.

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General presentation of Stellantis

We now propose that you learn a little more about the Stellantis group and its activities, so that you can anticipate its growth capacities and therefore the possible evolution of its stock.

The Stellantis Group is a Franco-Italian company resulting from the merger of Peugeot SA and Fiat Chrysler Automobiles NV in January 2021. The new entity thus created has been named "Stellantis NV".

This makes Stellantis one of the world's leading automotive competitors.

In order to better understand the activities of the Stellantis Group, it is possible to divide them into four main areas and in this way:

  • The sale of passenger cars and commercial vehicles is the main activity of the Stellantis group. The group sells Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Peugeot, Citroën, Opel, Vauxhall, Fiat Professional, Jeep, Lancia, Ram and SRT.
  • Then comes the sale of luxury vehicles with notably the brands Maserati or DS Automobiles.
  • The group is also engaged in the sale of automotive equipment including interior systems, automotive seating, automotive exteriors, emission control systems and other such products.
  • Lastly, a number of ancillary activities should also be taken into account in order to understand how Stellantis operates and its sources of revenue, including sales financing services through purchase, rental or leasing, after-sales services and other such services.
Analysis of Stellantis share price
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The major competitors of Stellantis

Let's now discover the main competitors of Stellantis in its sector of activity. This group has to face several major opponents, including the major car manufacturers, which we suggest you discover here:

Volkswagen 

First of all, the German Volkswagen group is of course an important competitor of Stellantis. This manufacturer is now the world leader in its sector in terms of the number of vehicles sold each year.

Toyota 

The competition from the Japanese manufacturer Toyota or Toyota Motor Corporation will also be closely monitored. It ranks second in this sector and as a leader in terms of financial performance. It is also one of the most highly valued stocks in this sector. Toyota is also one of the largest companies in the world. Toyota is also the originator of an original production system, the Toyota Production System, which gave rise to the term Toyotism.

Renault-Nissan 

This group is of course the car manufacturer created through the merger between the French manufacturer Renault and its Japanese competitor Nissan by means of cross-holdings.

General Motors 

Another automaker to watch in the Stellantis competition study is General Motors, also known as GM. It is an American automaker based in Detroit, Michigan, USA. It was the largest car manufacturer between 1931 and 2005 and also in 2011.

Ford

Still among the most important competitors of Stellantis, we will follow closely the news of the American group Ford which is a car manufacturer with a significant presence throughout the world. This one is based in Dearborn in the suburbs of the city of Detroit in Michigan.

Tesla 

Finally, we will also follow with the greatest attention the Tesla group, formerly known as Tesla Motors and which is specialized in the construction of electric cars. It is based in Palo Alto, California, in the Sillicon Valley in the USA. The company, headed by Elon Musk, specialises in consumer electric vehicles and is named after the inventor Nikola Tesla. One of the company's missions is to accelerate the global transition to a sustainable energy future, in particular by boosting the competitiveness of electrically powered cars. The company is distinguished by the performance and on-board technologies of its vehicles, including Autopilot, biochemical weapons defense and others.


The major partners of Stellantis

In the past, the entities that make up the Stellantis Group have created various partnerships that are still relevant today. Here are two examples of strategic alliances with other companies.

Atos 

In 2020, the PSA group extended its strategic partnership with the Atos group without specifying the amount of the new contract. The program between the two companies consists of building an SAP S/4HANA enterprise platform that integrates both Opel-Vauxhall and Peugeot Citroën DS entities on a single accounting system and this, with the aim of accelerating the digital transformation of the entire group.

Punch Powertrain

Also in 2020, PSA and now Stellantis signed an agreement with Punch Powertrain to create a second joint venture and to extend a strategic partnership in the field of electrification. Powertrain has a majority control of this new entity at 61%. It will be responsible for the design, manufacture and supply of Punch Powertrain's DT2 dual clutch transmission for the next generation of light electric and plug-in hybrid vehicles. The joint venture will initially supply PSA for its global operations and then other manufacturers around the world.

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The factors in favour of a rise in the Stellantis share price:

To conclude this article, we now propose that you discover the advantages and disadvantages of Stellantis shares, in other words, the main strengths and weaknesses of this group in its sector of activity.

Let's start with a recap of the strengths of this company with the following:

  • First of all, the fact that it is Carlos Tavares who has been elected to the position of CEO of the group is an asset because the latter held the same position at PSA and notably enabled it to achieve an operating margin of 8.5% in 2019 which is a record. This executive is also behind the electrification strategy of the brands owned by PSA.
  • Another major advantage of this new car manufacturer is the complementary nature of the various brands it owns in terms of positioning and also from a technical point of view. This will enable the group to develop new models on fewer platforms.
  • The final advantage of this group is that the combination of all these brands will enable Stellantis to cover almost the entire world market.
The factors in favour of a drop in the Stellantis share price:

With regard to the weaknesses of this company, the following should be noted:

  • First of all, it should be noted that the Stellantis group still lacks a presence in certain emerging and therefore strategically important markets. Indeed, Stellantis is still lagging behind in China and its high exposure to European markets is risky.
  • Another weak point to underline concerning Stellantis concerns the internal competition between the PSA and FCA brands. Indeed, the Alfa-Romeo brand in particular, which has already been undermined in recent years, will have to find a place for itself in front of Peugeot, which is PSA's sports brand. We can also wonder if Fiat will keep its low cost connotation in order not to canibalize Opel. Similarly, we don't know what will happen to Lancia, Dodge and Chrysler, all three of which are in trouble.
  • Finally, the last weak point of Stellantis concerns the combination of technical and technological agendas which are at different stages of development at PSA and FCA. Optimizing technical and industrial synergies is a major challenge for the group's long-term future and its subsequent growth, particularly because of the constantly rising costs of research and development and the tight schedule imposed by political authorities, especially in Europe, which remains its main market.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the dates to remember about the birth of Stellantis?

The creation of the Stellantis group through the merger of PSA and Fiat-Chrysler has gone through several stages. First of all, it was on October 30, 2019 that the merger project between the two carmakers was announced. It will then be necessary to wait until January 4, 2021 for the vote to create the new group to take place. Finally, it was on January 16, 2021 that the Stellantis group was created. The new share thus took its first steps on the stock exchange on that day.

What are the different brands owned by Stellantis?

The creation of Stellantis through the merger of two European car manufacturers has given it a number of car brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall. Some of these brands are luxury brands, some are premium brands and some are mid-range or low-cost brands.

How is the capital of the Stellantis Group distributed?

Following the 50/50 merger between PSA and FCA, the capital of the Stellantis group has been distributed as follows. 14% is held by Exor which is the Agnelli holding company, 7.2% is held by FFP which is the Peugeot family holding company, 6.2% is held by BpiFrance and 5.6% is held by Dongfeng. It should be noted that the main players are committed not to buy shares for 7 years and not to sell shares for 3 years after this merger.

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