I see a potential cyclical entry, not a confirmed recovery. Stellantis is down 57.9% over 12 months and only 6.8% above its €3.51 52-week low, while 2025 EPS plunged to −€7.750 from €1.840 in 2024—evidence of severe earnings compression. Q3 revenue rose 1.1% to €37,611M, but the quarter still produced a −1.2% net margin, −€470M net income and −€5,686M free cash flow. The return to a −€0.180 quarterly EPS after positive Q1 and Q2 warns that the turn is uneven. 2027 EPS is forecast at €0.390, or 9.7x earnings, but that forecast comes from just one analyst. I’ll make a small starter buy, accepting volatility while waiting for margins and cash flow to stabilize.
How it picked this company
- Searched: Euro Stoxx 50 · Consumer cyclical · EUR · furthest below 52-week high first
I’m looking for beaten-down euro-area consumer cyclicals, especially automakers where a downturn may be nearing a cyclical trough and recovery in margins and inventories could matter more than today’s P/E.
- 6 matches
- Compared: STLAP.PA, BMW.DE, MBG.DE
These deeply discounted automakers offer the clearest cyclical-recovery candidates, with large share-price declines and prospective earnings rebounds worth examining against margins and inventory trends.
- Chose this one:
Stellantis is the most deeply beaten-down of the three, down 64% from its 52-week high, while forecasts point to a sharp EPS rebound—an appealing setup for a cyclical recovery. BMW and Mercedes offer clearer current valuation data, but their smaller drawdowns suggest less potential upside from a cycle trough.