Will Stellantis (STLA) Collapse?

Mr. Market thinks auto giant Stellantis (STLA) could collapse. Stellantis NV’s share price fell by -27.92% from $18.91 on 2 October 2023 to $13.64 on 2 October 2024.

Frighteningly, financial numbers support Mr. Market’s conclusion. Stellantis’s quarterly revenues fell by -13.57% from €49.18 billion ($54.33 billion) in June 2023 to €42.51 billion ($46.96 billion) June 2024. Similarly, the quarterly net income fell by -48.51% from €5.46 billion ($6.03 billion) in June 2023 to €2.81 billion ($3.10 billion) in June 2024. Consequently, Stellantis’s quarterly net profit margin fell by -40.36% to 6.62 in June 2024.

Meanwhile, Stellantis’s quarterly cash from operations fell by 63.5% to €2.44 billion ($2.70 billion)in June 2024. Plus, the quarterly free cash flow fell by 67.31% to €1.24 billion in June 2024. However, Stellantis is still a cash-rich company its cash and short-term investments shrank by -27.23% to €38.07 billion ($42.06 billion) in June 2024.

Tellingly, the only growing cash figure at Stellantis was quarterly financing. The quarterly cash from financing grew by 5.09% to -€2.13 billion ($2.35 billion)in June 2024.

Oddly, Stellantis, still has more value on paper. Its total assets grew by 4.19% from €198.75 billion ($219.57 billion) in June 2023 to €206.89 billion($228.56 billion) in June 2024. Conversely, Stellantis’s total liabilities grew by 2.51% from €121.51 billion ($134.24 billion) in June 2023 to €124.56 billion ($137.61 billion) in June 2024.