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Stellantis NV STLA

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Fiat Chrysler and Peugeot Merger Completed Saturday Jan. 16

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

The merger of no-moat-rated PSA Peugeot Citroen and Fiat Chrysler was completed on Saturday, Jan. 16. After merger adjustments including higher debt and cash, plus a EUR 2.9 billion Fiat Chrysler special dividend, the spin-off of Faurecia to Stellantis shareholders, and all share-count adjustments, the market currently values Stellantis at roughly EUR 13, representing a 28% discount to our premerger EUR 18 Stellantis fair value estimate. Even so, our premerger fair value estimate does not include EUR 5.0 billion in targeted annualized cost savings, 80% of which is expected to be realized in the fourth year following the merger. We are placing shares of Stellantis under review while we update our company report and model. We expect to publish an updated Stellantis company report and fair value estimate during the first quarter of 2021.

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Company Profile

Business Description

Stellantis NV was formed on Jan. 16, 2021, from the merger of Fiat Chrysler Automobiles NV and PSA Group. The combination of the two companies creates a global automaker with 14 brands. For 2020, we estimate that a combined Stellantis would have had sales volume of roughly 6 million vehicles and about EUR 145 billion in revenue, albeit substantially affected by COVID-19. We see limited geographic overlap as Fiat Chrysler's major markets were North America, Italy, and Brazil, while PSA Group's major markets were France, the United Kingdom, Germany, and Argentina.

Contact
Singaporestraat 92-100
Lijnden, NH, 1175 RA, Netherlands
T +31 203421707
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 189,512

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