September 28, 2023

Stellantis - a well-performing car manufacturer

Stellantis -  a well-performing car manufacturer

While we’ve been busy working on new things - the Obermatt Swiss Pearls Index - we haven’t forgotten about you and our stock tips and it’s time to revisit our Wikifolios.

This time, we’re analyzing a popular car manufacturer that must be doing something right, as their Obermatt 360° View is 97: Stellantis. Let’s dig deeper and see why we’ve bought it for the Obermatt Europe Value Wikifolio.

PRO: These three points speak for a buy:

  1. Green Obermatt ranks show that both the company’s performance and market sentiment are very good. We would especially note the Value Rank, which is at 95, meaning that the share price is more affordable than 95% of its competitors.
  2. Stellantis has recently announced that their new, smaller and more affordable electric vehicles will have a rather big range increase. This means that these more sustainable personal vehicles will be more attractive to buyers, especially in Europe, where smaller vehicles are popular.
  3. After recent mergers, Stellantis is one of the biggest car manufacturers, comprising 14 brands across the world, meaning that the company is well diversified regionally.

CONTRA: These three points argue against it:

  1. Investing in the automotive industry has always been risky: it is a massive system with many elements of the production and distribution chains which are expensive and require a lot of up-front capital in the form of debt.
  2. Obermatt believes in car-free cities. However, currently, cars are a necessity and that will be the case for some time.
  3. Ongoing strikes at Stellantis and other car manufacturers’ facilities across the United States show that the relationship towards the employees may be off and the strikes may also affect the supply chain in the near future.

In the case of Stellantis, we believe we’re making the correct choice - good ranks and good products.

Learn more on self-directed stock investing from our experienced investors in the free Obermatt Coffee Break Chats. If you still want the proven performance of the Obermatt method for your portfolio, but don’t wish to invest in individual stocks, you might want to look at the Obermatt Swiss Pearls Index traded on the Swiss stock exchange.

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