Stellantis Earnings: Revenue and Margin Continue to Impress as Chip Shortage Alleviates

No-moat Stellantis reported first-half revenue of EUR 98.4 billion, up 12% from EUR 88.0 billion last year. The top line beat the FactSet consensus by 2%. The revenue increase was better than the 9% unit volume increase to 3.3 million from 3.0 million a year ago. Currency, the chip shortage, and logistics disruptions contributed negative 1 percentage point to the revenue increase, more than offset by vehicle pricing, volume, and mix that added 13 percentage points. The automaker (French domiciled for accounting purposes) discloses only revenue in the first and third quarters but full financials for the first half and full year. We raised our fair value estimate to EUR 39 from EUR 38 due to the time value of money since our last update. The 5-star-rated shares of Stellantis currently trade at a compelling 55% discount to our new fair value.