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Fiat Chrysler Automobiles (FCA)

Fiat stocks by TradeFW broker

Fiat Chrysler Automobiles is among the world’s largest auto makers and one of the most profitable companies in the automotive industry. With a stock market value going off the charts, the Fiat Stock may be a great addition to your investment portfolio!

Overview

Fiat Chrysler Automobiles (FCA) is an Italian and American multinational company which was founded in 2014 after the merge of Fiat S.p.A and Chrysler Group LLC. Its main headquarters are located in the Netherlands, while the financial headquarters are established in London for tax purposes. The company is led by the executive members of the Board of Directors, which has as key people John Elkann (Chairman) and Mike Manley (CEO).

Through its subsidiaries, Fiat Chrysler Automobiles designs, manufactures, distributes and sells vehicles, production systems, and components to over 140 countries. In addition, it provides leasing and rental services, as well as retail and dealer financings. The company has six operational segments: APAC, NAFTA, LATAM, EMEA, MASERATI, and Components; and its portfolio includes the following brands: Fiat, Fiat Professional, Chrysler, Abarth, Alfa Romeo, Dodge, Jeep, Maserati, Lancia, and Ram Trucks; along with other industrial subsidiaries (Mopar, Magneti Marelli, Comau, and Teksid).

Fiat Chrysler Automobiles is a publicly listed company and can be traded on the Italian Stock Exchange (BIT: FCA) and the New York Stock Exchange (NYSE: FCAU). The company is also a FTSE MIB stock market index component.

Brief History

Fiat Chrysler Automobiles was formed on October 12, 2014 after the merge of Italian holding company Fiat S.p.A and the American company Chrysler Group LLC. The company made public its 5-year business plan, which aimed to increase the sales with 7 million units, push revenues to €132 billion and reduce the industrial debt down to €0.5-1 billion by the end of 2018. The following year, FCA sold 4.6 million units and revenues went up 18%, reaching €113.2 billion.

In October 2014 the company announced its intentions to separate from Ferrari. The deal was closed two years later. In the meantime, Alfa Romeo launched the 4C and 4C Spiders (2014), as well as the SUV Stelvio (2016); Chrysler released the Chrysler Pacifica (2017), Fiat launched the Fiat 500X and the Fiat Aegea (2015), Maserati released a new Maserati Levante SUV (2016), and Jeep launched the Jeep Renegade (2014), the Jeep Wrangler and the Grand Cherokee (2018).

The many accomplishments of the company led to prosperous financial results. In 2017, FCA’s revenue was of US$ 133.211 billion, the operating income of US$ 7.504 billion, and the net income totaled US$ 4.215 billion.

Fiat Chrysler Automobiles Stock: Outlines and reasons to buy it

Fiat Chrysler Automobiles has had year on year earnings growth over 20% in the past five years and the company’s debt compared to the net worth went down from 307.3% to 72.2% over the same period of time. Based on past earnings, the automotive giant has a great value with a Price/Earnings ratio standing at 6.1x in comparison with the Europe Auto industry average of 8.7x and the Italian market average of 15.1x.

The longevous financial health of the company is one of the fundamental characteristics that makes this stock a great trading opportunity and the projected annual growth rates are even more encouraging. Fiat Chrysler Automobiles is expected to have a positive 9.5% annual growth in earnings during the following years, while the payout ratio is projected to remain covered by the earnings and reach 15% in the next three years.

Fiat Chrysler Automobiles can be traded on the Italian Stock Exchange (BIT: FCA) and the New York Stock Exchange (NYSE: FCAU). The company is also a FTSE MIB stock market index component. Do you want to be part of one of the world’s automotive titans while also diversifying your trading portfolio? Overview the Fiat stock with us and we’ll make sure your experience is going to be an unforgettable one.

References:

  1. Statista.com, “FCA’s net revenue from FY 2011 to FY 2018 (in billion euros)”, https://www.statista.com/statistics/267284/global-revenue-of-fiat/
  2. Keith Laing, “Fiat Chrysler nearly doubles profit in 2017”, JAn, 25, 2018, https://www.detroitnews.com/story/business/autos/chrysler/2018/01/25/fiat-chrysler-annual-earnings/109794420/
  3. Macrotrends.net, “Fiat Chrysler Automobiles Revenue 2014-2018 | FCAU”, https://www.macrotrends.net/stocks/charts/FCAU/fiat-chrysler-automobiles/revenue
  4. Nasdaq.com, “Fiat Chrysler Automobiles N.V. Earnings Forecast”, https://www.nasdaq.com/symbol/fcau/earnings-forecast

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