| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 57 | — | 17.6x | Around median | |
Growth | 21 | — | 7.1% | Bottom tier | |
Quality | 26 | — | 4.5% | Bottom tier | |
Safety | 36 | — | 2.6x | Bottom tier | |
Capital Return | 6 | — | 2.15% | Bottom tier | |
Momentum | 5 | -46.8% | 2.3% | Bottom tier | |
Sentiment | 43 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Stellantis N.V. manufactures and sells vehicles through a portfolio that includes Ram, Jeep, Chrysler, Fiat, Peugeot, Citroën, Opel, DS, and Lancia, alongside Leapmotor. Its revenue and profitability depend on shipment volumes, model and powertrain mix, pricing, and factory and procurement efficiency, with operations in North America, Europe, South America, the Middle East and Africa, and Asia Pacific. In Q2 FY2026, consolidated shipments reached 1.6 million vehicles, up 10%, while net revenues reached €43.5 billion, up 13%, driven particularly by a 122 thousand-vehicle increase in North American volume.
Q2 FY2026 delivered adjusted operating income of €773 million, up €560 million, and an adjusted operating margin of 1.8% following a year-over-year improvement of 120 basis points. Industrial free cash flow was €1 billion, an improvement of €1 billion, but net profit of €293 million fell short of analysts' expectations of €464 million. Regionally, adjusted operating income was €284 million in North America with a 1.6% margin, negative €94 million in Europe, €402 million in South America, €329 million in the Middle East and Africa, and €27 million in Asia Pacific.
EDGAR filings reveal a sharp deterioration before the operational improvement recorded in Q2 FY2026; FY2025 revenue declined to $153.5 billion from $156.9 billion in FY2024 and $189.5 billion in FY2023. Gross profit swung from $20.5 billion in FY2024 to a gross loss of $2.1 billion in FY2025, while net income shifted from a profit of $5.5 billion to a loss of $22.3 billion, and loss per share reached $7.75. Therefore, the Q2 FY2026 results represent the beginning of an operational recovery from a weak base, not a complete return to FY2023 profitability levels, when net income reached $18.6 billion.
The analyst consensus reflects a Neutral rating and an average price target of $7.13, within a wide range of $4 to $9, indicating significant divergence in estimates of the speed and profitability of the recovery. Both the average target and the highest target remain below the 52-week range high of $12.22, while the range extends down to $5.05, and no usable price-to-earnings ratio is available because of the FY2025 loss of $22.3 billion; therefore, the re-rating depends more on proving the sustainability of margins and cash flow than on a historical earnings multiple.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Net revenues reached €43.5 billion, up 13%, while shipments increased 10% to 1.6 million vehicles. Adjusted operating income rose to €773 million, and its margin improved 120 basis points to 1.8%. Industrial free cash flow also turned positive at €1 billion, but net profit of €293 million remained below analysts' expectations of €464 million.
Regional sales increased 6% in Q2 FY2026, market share rose 40 basis points, and shipments grew 38%. The Ram 1500 equipped with the HEMI V8 engine drove the volume improvement, while Ram sales increased 12% and Chrysler sales increased 54%. Nevertheless, adjusted operating income was only €284 million and the margin was 1.6%, so management is focusing on reducing material and warranty costs and improving quality.
VCP targets an annualized cost reduction of €6 billion by FY2028 through direct materials, manufacturing, and logistics. The company intends to implement 40% of the identified initiatives by the end of FY2026. Management expects these initiatives to add €2.4 billion to adjusted operating income in FY2027, with the full savings flowing through to adjusted operating earnings.
Automated analysis for informational purposes only — not investment advice.
During the first half of FY2026, Stellantis launched the Ram 1500 TRX SRT, DS #7, and Fiat Grande Panda with an internal combustion engine, in addition to six refreshed vehicles. It plans nine other new or refreshed vehicles during FY2026, including the Jeep Recon BEV, Jeep Grand Wagoneer REV, and Ram Rumble Bee. Management says SRT versions generate margins two to three times those of comparable non-SRT versions, but additional high-volume products will not reach the market before the end of FY2027 and the beginning of FY2028.
The guidance assumes net tariff expenses of between €1 billion and €1.2 billion, alongside intensifying raw material inflation and a shortage of memory chips. Management expects volume to decline as inventory is reduced, with Q3 FY2026 affected by summer production shutdowns, followed by improved performance in Q4. Capital expenditure in the second half will also be more than €1 billion higher than in the first half, while payments associated with second-half FY2025 charges will continue.
The consensus rating is Neutral, with an average price target of $7.13, a low target of $4, and a high target of $9. Both the average target and the high target are below the 52-week range high of $12.22, while the range low is $5.05. No meaningful price-to-earnings ratio is available following a net loss of $22.3 billion and a loss per share of $7.75 in FY2025, making proof of the operational recovery essential to the valuation.
