BUY BUY BUY BUY: Fiat Chrysler Automobiles NV

March 26, 2017
NYSE: FCAU
FIAT CHRYSLER AUTOMOBILES NV

BUY HOLD SELL
BUY
RATING SINCE 12/02/2016
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F TARGET PRICE $14.16
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 3/23/2017
NA NA 1.88 $16.5 Billion $5.45-$11.63 $10.79
Sector: Consumer Goods & Svcs Sub-Industry: Automobile Manufacturers Source: S&P
Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years
FCAU BUSINESS DESCRIPTION
Fiat Chrysler Automobiles N.V., together with its 15
subsidiaries, designs, engineers, manufactures, TARGET
TARGET
TARGETPRICE
TARGET PRICE
PRICE$14.16
$14.16
$14.16 14
distributes, and sells vehicles, components, and 13
production systems. The company operates
12
through six segments: NAFTA, LATAM, APAC,
EMEA, Maserati, and Components. 11
10
STOCK PERFORMANCE (%) 9
3 Mo. 1 Yr. 3 Yr (Ann)
8
Price Change 19.35 38.86 NA
7
GROWTH (%) 6
Last Qtr 12 Mo. 3 Yr CAGR 5
Revenues -12.73 -2.63 -0.64 Rating History
Net Income 28.92 423.42 15.08 HOLD BUY
EPS 56.25 1,487.50 7.58
Volume in Millions
200
RETURN ON EQUITY (%)
FCAU Ind Avg S&P 500 100
Q4 2016 NA 8.24 12.00
Q4 2015 0.51 -10.57 12.28 0
2016 2017
Q4 2014 2.43 2.16 14.59 COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
P/E COMPARISON RECOMMENDATION

We rate FIAT CHRYSLER AUTOMOBILES NV (FCAU) a BUY. This is driven by a number of strengths, which we
believe should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
solid stock price performance, impressive record of earnings per share growth and compelling growth in net
income. Although no company is perfect, currently we do not see any significant weaknesses which are
likely to detract from the generally positive outlook.
HIGHLIGHTS
8.50 11.17 26.33 Powered by its strong earnings growth of 56.25% and other important driving factors, this stock has surged by
38.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the
FCAU Ind Avg S&P 500
future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the
stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
EPS ANALYSIS ($)
FIAT CHRYSLER AUTOMOBILES NV reported significant earnings per share improvement in the most recent
Q4 0.25
Q2 0.22
Q2 0.21
Q2 0.19
quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive
Q3 0.17
Q4 0.16
Q4 0.16
earnings per share growth over the past two years. We feel that this trend should continue. During the past
Q1 -0.22
Q1 0.01
Q1 0.35
Q3 0.45
fiscal year, FIAT CHRYSLER AUTOMOBILES NV increased its bottom line by earning $1.27 versus $0.08 in the
prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.27).
Q3 -0.28
The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly
outperformed compared to the Automobiles industry average. The net income increased by 28.9% when
compared to the same quarter one year prior, rising from $260.00 million to $335.19 million.
2014 2015 2016
NA = not available NM = not meaningful
Despite the weak revenue results, FCAU has outperformed against the industry average of 25.7%. Since the
same quarter one year prior, revenues fell by 12.7%. The declining revenue has not hurt the company's
1 Compustat fiscal year convention is used for all fundamental
data items. bottom line, with increasing earnings per share.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy Report Date: March 26, 2017 PAGE 1
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
March 26, 2017
NYSE: FCAU

Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
NA NA 1.88 $16.5 Billion $5.45-$11.63 $10.79
PEER GROUP ANALYSIS INDUSTRY ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*
The automobile industry is comprised of companies that design, manufacture, engineer, assemble and market
automobiles and motorcycles as well as provide leasing and financial services. Industry performance is
100%
RACE
closely linked with overall economic performance. Major players include General Motors (GM), Ford Motor
FA
Company (F) and Chrysler. This group is commonly referred to as Detroits big three. BMW, Daimler, Honda
VO
TSLA (HMC), Hyundai, Mazda, Nissan, Subaru, Toyota (TM) and Harley-Davidson (HOG) are other prominent
RA
BL
players. There are also niche players such as Winnebago Industries (WGO) for motor- homes and Tesla
E
Motors (TSLA) for high-end electric cars.
Moderating oil prices have not shifted demand back to heavy SUVs and other trucks as more fuel-efficient
THO options are now available. This change in consumer preferences has supported German, Japanese and
Revenue Growth (TTM)
Korean manufacturers, whose market share has consequently expanded. The big three are trying to adapt
WGO their product lines to changing preferences.
UN
GM
FA
TM HMC Huge health care and fringe benefits provided to big three employees give foreign competitors a strong
VO
F
-20%
advantage. All three are negotiating new labor contracts with the United Auto Workers (UAW) union. With
RA
HOG
B
these on-going negotiations, the big three hope to reduce the profit-per-vehicle gap. Reduced sales, different
LE
0% 35% platforms for parts, high raw material costs and tough exchange rates are other hurdles facing the industry.
EBITDA Margin (TTM)
Companies with higher EBITDA margins and US congress toughened the Corporate Average Fuel Economy (CAFE) regulations that no longer grant
revenue growth rates are outperforming companies exemptions to light trucks classified as SUVs or passenger vans unless they exceed 10,000 lbs. In the near
with lower EBITDA margins and revenue growth future, the standard is to be modified to accommodate many larger vehicles.
rates. Companies for this scatter plot have a market
capitalization between $939.7 Million and $180.3 Consumer choice in vehicles is more than ever being influenced by fuel efficiency. Automakers are exploring
Billion. Companies with NA or NM values do not alternate fuels such as ethanol and electric fuel cells and are delivering hybrid gasoline-electric vehicles and
appear. pure-electric car for sale. The new cars are lighter, provide better fuel efficiency, enhanced safety features,
and many come with tax credits from the government to make costs competitive. Having an auto industry is
*EBITDA Earnings Before Interest, Taxes, Depreciation and
Amortization. considered to be in the strategic interest of America and was bailed-out to help it survive the Great
Recession.Manufacturers have recognized growing demand from developing economies and the opportunity
REVENUE GROWTH AND EARNINGS YIELD to increase auto parts sourcing from these economies.
100%
RACE
PEER GROUP: Automobiles
FA
Recent Market Price/ Net Sales Net Income

VO
TSLA
RA
Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M)
BL
E
FCAU FIAT CHRYSLER AUTOMOBILES 10.79 16,487 8.50 117,088.16 1,898.40

WGO WINNEBAGO INDUSTRIES 29.75 940 15.49 1,151.15 54.60
HMC HONDA MOTOR CO LTD 30.73 55,665 14.29 126,541.24 3,881.12
THO GM GENERAL MOTORS CO 34.26 51,320 5.71 166,380.00 9,427.00
Revenue Growth (TTM)
THO THOR INDUSTRIES INC 97.44 5,124 16.80 5,873.75 304.88

WGO F FORD MOTOR CO 11.67 45,553 10.24 151,800.00 4,596.00
UN
GM TSLA TESLA INC 254.78 41,554 NM 7,000.13 -674.91

FA
HMC FTM
VO
HOG TM TOYOTA MOTOR CORP 110.51 180,297 9.97 247,045.00 17,158.00

-20%
RA
FCAU
B
RACE FERRARI NV 70.72 13,361 35.72 3,295.03 375.27

LE
-2% 18% HOG HARLEY-DAVIDSON INC 60.53 10,631 15.85 5,996.46 692.16
Earnings Yield (TTM) The peer group comparison is based on Major Automobile Manufacturers companies of comparable size.
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -2.6% and
95.2%. Companies with NA or NM values do not
appear.
March 26, 2017
NYSE: FCAU

NA NA 1.88 $16.5 Billion $5.45-$11.63 $10.79
COMPANY DESCRIPTION STOCK-AT-A-GLANCE

Fiat Chrysler Automobiles N.V., together with its Below is a summary of the major fundamental and technical factors we consider when determining our
subsidiaries, designs, engineers, manufactures, overall recommendation of FCAU shares. It is provided in order to give you a deeper understanding of our
distributes, and sells vehicles, components, and rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
production systems. The company operates through six important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
segments: NAFTA, LATAM, APAC, EMEA, Maserati, and understanding of our stance on the stock, these factors must be assessed in combination with the stocks
Components. It provides passenger cars, light trucks, and valuation. Please refer to our Valuation section on page 5 for further information.
light commercial vehicles under the Abarth, Alfa Romeo,
Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and FACTOR SCORE
Ram brand names; and luxury vehicles under the
Maserati brand, as well as related service parts and Growth out of 5 stars 3.5
accessories, and service contracts under the Mopar Measures the growth of both the company's income statement and weak strong
brand. The company also produces and sells lighting cash flow. On this factor, FCAU has a growth score better than 60% of
components, body control units, suspensions, shock the stocks we rate.
absorbers, electronic systems, exhaust systems,
powertrain components, engine control units, plastic
molding components, and after-market products under
Total Return out of 5 stars 2.5
the Magneti Marelli brand name. In addition, it offers Measures the historical price movement of the stock. The stock weak strong
cast iron components for engines, gearboxes, performance of this company has beaten 40% of the companies we
transmissions and suspension systems, aluminum cover.
cylinder heads, and engine blocks under the Teksid
brand; and designs and produces industrial automation Efficiency out of 5 stars 3.0
systems and related products for the automotive industry Measures the strength and historic growth of a company's return on weak strong
under the Comau brand name. Further, the company invested capital. The company has generated more income per dollar of
provides retail and dealer financings; and factoring capital than 50% of the companies we review.
services. The company sells its products directly, or
through distributors and dealers in approximately 140
countries. Fiat Chrysler Automobiles N.V. was founded in
Price volatility out of 5 stars 4.5
1899 and is based in London, the United Kingdom. Measures the volatility of the company's stock price historically. The weak strong
stock is less volatile than 80% of the stocks we monitor.
25 St. James' Street Solvency out of 5 stars 3.5
London SW1A1HA Measures the solvency of the company based on several ratios. The weak strong
NLD company is more solvent than 60% of the companies we analyze.
Phone: 44 20 7766 031
http://www.fcagroup.com Income out of 5 stars 0.5
Employees: 238000
Measures dividend yield and payouts to shareholders. This company weak strong
pays no dividends.
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
March 26, 2017
NYSE: FCAU

NA NA 1.88 $16.5 Billion $5.45-$11.63 $10.79
Consensus EPS Estimates ($) FINANCIAL ANALYSIS

IBES consensus estimates are provided by Thomson Financial Even though sales decreased, the net income has increased, representing an increase to the bottom line.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
0.42 1.96 E 2.40 E

Q1 FY17 2017(E) 2018(E)
INCOME STATEMENT
Q4 FY16 Q4 FY15
Net Sales ($mil) 25,724.34 29,476.58
EBITDA ($mil) NA 1,638.48
EBIT ($mil) NA 269.98
Net Income ($mil) 335.19 260.00
BALANCE SHEET
Q4 FY16 Q4 FY15
Cash & Equiv. ($mil) 18,528.26 23,055.83
Total Assets ($mil) NA 114,062.94
Total Debt ($mil) 25,375.45 30,172.82
Equity ($mil) NA 17,474.30
PROFITABILITY
Q4 FY16 Q4 FY15
Gross Profit Margin NA 15.09%
EBITDA Margin NA 5.55%
Operating Margin NA 0.92%
Sales Turnover NA 1.05
Return on Assets NA 0.31%
Return on Equity NA 0.51%
DEBT
Q4 FY16 Q4 FY15
Current Ratio NA NA
Debt/Capital NA 0.63
Interest Expense NA 430.60
Interest Coverage NA 0.63
SHARE DATA
Q4 FY16 Q4 FY15
Shares outstanding (mil) 1,289 1,289
Div / share 0.00 0.00
EPS 0.25 0.16
Book value / share NA 13.56
Institutional Own % NA NA
Avg Daily Volume 10,474,937 10,262,258
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
March 26, 2017
NYSE: FCAU

NA NA 1.88 $16.5 Billion $5.45-$11.63 $10.79
RATINGS HISTORY VALUATION

Our rating for FIAT CHRYSLER AUTOMOBILES NV BUY. This stock's P/E ratio indicates a discount compared to an average of 11.17 for the Automobiles industry
has not changed since 12/2/2016. As of 3/23/2017, and a significant discount compared to the S&P 500 average of 26.33. The price-to-sales ratio is well below
the stock was trading at a price of $10.79 which is both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other
7.2% below its 52-week high of $11.63 and 98.0% key valuation criteria, FIAT CHRYSLER AUTOMOBILES NV proves to trade at a discount to investment
above its 52-week low of $5.45. alternatives within the industry.
2 Year Chart
$13 Price/Earnings 1 2 3 4 5 Price/CashFlow 1 2 3 4 5
HOLD: $7.99
BUY: $7.63
premium discount premium discount

FCAU 8.50 Peers 11.17 FCAU NA Peers 5.30
$10 Discount. A lower P/E ratio than its peers can Neutral. The P/CF ratio is the stocks price divided
signify a less expensive stock or lower growth by the sum of the company's cash flow from
$8 expectations. operations. It is useful for comparing companies
FCAU is trading at a discount to its peers. with different capital requirements or financing
structures.
2015 2016 Ratio not available.
Price/Projected Earnings 1 2 3 4 5 Price to Earnings/Growth 1 2 3 4 5

premium discount premium discount
MOST RECENT RATINGS CHANGES FCAU 4.50 Peers 10.61 FCAU 0.00 Peers 2.62
Date Price Action From To Discount. A lower price-to-projected earnings ratio Discount. The PEG ratio is the stocks P/E divided
12/2/16 $7.63 Upgrade Hold Buy than its peers can signify a less expensive stock or by the consensus estimate of long-term earnings
3/21/16 $7.99 Initiated -- Hold lower future growth expectations. growth. Faster growth can justify higher price
Price reflects the closing price as of the date listed, if available FCAU is trading at a significant discount to its multiples.
peers. FCAU trades at a significant discount to its peers.
RATINGS DEFINITIONS & Price/Book 1 2 3 4 5 Earnings Growth 1 2 3 4 5

DISTRIBUTION OF THESTREET RATINGS premium discount lower higher
(as of 3/23/2017) FCAU NA Peers 3.60 FCAU 1487.50 Peers 50.72
Neutral. A lower price-to-book ratio makes a stock Higher. Elevated earnings growth rates can lead to
42.23% Buy - We believe that this stock has the more attractive to investors seeking stocks with capital appreciation and justify higher
opportunity to appreciate and produce a total return of lower market values per dollar of equity on the price-to-earnings ratios.
more than 10% over the next 12 months. balance sheet. FCAU is expected to have an earnings growth rate
Ratio not available. that significantly exceeds its peers.
31.14% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of Price/Sales 1 2 3 4 5 Sales Growth 1 2 3 4 5
premium discount lower higher
shares at this time and that its likelihood of positive total
FCAU 0.12 Peers 1.15 FCAU -2.63 Peers 13.07
return is roughly in balance with the risk of loss.
Discount. In the absence of P/E and P/B multiples, Lower. A sales growth rate that trails the industry
26.63% Sell - We believe that this stock is likely to the price-to-sales ratio can display the value implies that a company is losing market share.
decline by more than 10% over the next 12 months, with investors are placing on each dollar of sales. FCAU significantly trails its peers on the basis of
the risk involved too great to compensate for any FCAU is trading at a significant discount to its sales growth
possible returns. industry on this measurement.
DISCLAIMER:
TheStreet Ratings
14 Wall Street, 15th Floor The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
New York, NY 10005 TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
www.thestreet.com other third-party data providers.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726 TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.

BUY BUY BUY BUY: Fiat Chrysler Automobiles NV

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

BUY BUY BUY BUY: Fiat Chrysler Automobiles NV

Diunggah oleh

Hak Cipta:

Format Tersedia

March 26, 2017

FIAT CHRYSLER AUTOMOBILES NV

P/E COMPARISON RECOMMENDATION

FIAT CHRYSLER AUTOMOBILES NV

PEER GROUP ANALYSIS INDUSTRY ANALYSIS

Motors (TSLA) for high-end electric cars.

Recent Market Price/ Net Sales Net Income

FCAU FIAT CHRYSLER AUTOMOBILES 10.79 16,487 8.50 117,088.16 1,898.40

THO THOR INDUSTRIES INC 97.44 5,124 16.80 5,873.75 304.88

GM TSLA TESLA INC 254.78 41,554 NM 7,000.13 -674.91

HOG TM TOYOTA MOTOR CORP 110.51 180,297 9.97 247,045.00 17,158.00

RACE FERRARI NV 70.72 13,361 35.72 3,295.03 375.27

FIAT CHRYSLER AUTOMOBILES NV

COMPANY DESCRIPTION STOCK-AT-A-GLANCE

THESTREET RATINGS RESEARCH METHODOLOGY

FIAT CHRYSLER AUTOMOBILES NV

Consensus EPS Estimates ($) FINANCIAL ANALYSIS

0.42 1.96 E 2.40 E

FIAT CHRYSLER AUTOMOBILES NV

RATINGS HISTORY VALUATION

premium discount premium discount

Price/Projected Earnings 1 2 3 4 5 Price to Earnings/Growth 1 2 3 4 5

RATINGS DEFINITIONS & Price/Book 1 2 3 4 5 Earnings Growth 1 2 3 4 5

Anda mungkin juga menyukai