Malaga, March 20th 2023 - 36 Square Capital has decided to invest into car manufacturer Stellantis representing the main brands Peugeot, Fiat, Abarth, Opel, Maserati, DS Automobiles and many more at a share price of 15.67 EUR per share. This is now the second car manufacturer after luxury brand Mercedes in our portfolio.
With this purchase Stellantis represents 8,31% position in 36 Square Capital portfolio. We believe that the portfolio of 16 brands have a strong momentum and customer appreciation. With the switch to hybrid (HEV/PHEV) and battery EV (BEV) only accelerating in upcoming decade, we believe Stellantis is well positioned accross the globe.
The financials of the company according to our analysis appear extremely sound with Debt to Equity at 0.65, Price to Book at 0.74, ROIC above 10%, Price to Earnings extremely low at <4 and <5 for Price to Cash Flow. At the same time the upcoming dividends will be yielding at 7.26% after taxes due to their outstanding performance in 2022 with a cash dividend pre-tax of EUR 1.34 per share (on a 15.67 EUR purchase price per share for 36 Square Capital).
By the end of the year, the company will launch a share buyback program worth up to €1.5 billion.
Last but not least, we like also management's attitude of paying out a 2BEUR bonus to all employees https://www.motor1.com/news/653757/stellantis-employees-two-billion-euro-bonus/ .