Both Technical & Financial Analysis

Technicals

From a technical viewpoint, the stock seems like it’s continuing its bullish momentum dating back to October of last year. We can see that it has approached some tough resistance and has been rejected as of now, the resistance sits at $20.69 (oval). A break and close below it could then see an attempt at the even more challenging resistance of $21.92 (upper trendline of the triangle). Until a clear move above $20.69, moves above $21.92 aren’t being considered. The reason is that we can see that the price has a habit of falling back to the supportive trendline. The trendline is acting almost like a sling as every time a pullback occurs, a bounce follows pretty much straight away. So it is likely that we may see another pullback towards the trendline if resistance persists, before rising higher. Support along the trendline currently reads $18.62. A break and close below it would then face support at $17.82 and $17.56, only a fall below $17.56 could suggest that further downside is possible. The technical indicators indicate a neutral-positive outlook, the MACD is flat but could be argued that it’s slightly positive. Whereas the RSI is positive as it reads 58. 

Financials

The financial side for Stellantis seems very solid. Total revenue has grown significantly, especially after the Covid period because if we compare 2020 to 2021 we can see that the revenue grew by 77% year-on-year. Growth from 2021 to 2022 wasn’t as significant but certainly enough to keep investors happy, rising by almost $13 billion. With this impressive growth in revenue, the company has managed to increase its EBITDA as well as net income. As a result, the earnings per share of the company rose to $5.64 in 2022. Heading over to the balance sheet, it all seems healthy. Strong cash on hand sitting at $53 billion, this is almost double the amount in 2020 and it is more than triple the amount in 2019. The value of total assets has fallen but with it so did long-term debt (debt was reduced by $6 billion in 2022). Due to this debt reduction and some other key factors, Stellantis saw its total equity rise to $76 billion from $66 billion. Overall, this is a strong balance sheet for current market conditions.