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In this stocks market news article you are going to get info about Top European Automotive Stocks. You will get full analysis , so read it full.
Stocks Info of Automotive Companies of Europe – Q4 2024
| Company | Ticker | Market Cap (€B) | Revenue (Q4 2024, €B) | Net Profit (Q4 2024, €B) | Stock Price (Dec 2024, €) | Exchange |
|---|---|---|---|---|---|---|
| Volkswagen Group | VOW.DE | 72.5 | 78.2 | 3.1 | 125.40 | Frankfurt |
| Mercedes-Benz | MBG.DE | 68.3 | 42.5 | 2.4 | 72.80 | Frankfurt |
| BMW Group | BMW.DE | 58.9 | 38.7 | 2.0 | 88.50 | Frankfurt |
| Stellantis | STLAM | 82.6 | 91.4 | 4.3 | 23.75 | Milan/Euronext |
| Renault | RENA.PA | 11.2 | 12.9 | 0.6 | 42.10 | Paris |
| Porsche SE | PAH3.DE | 14.8 | N/A (Holding Co.) | 0.5* | 52.30 | Frankfurt |
| Rheinmetall | RHM.DE | 26.4 | 2.8 | 0.3 | 365.20 | Frankfurt |
| Valeo | FR.PA | 5.1 | 5.4 | 0.2 | 11.90 | Paris |
| Brembo | BRE.MI | 7.3 | 1.2 | 0.16 | 10.45 | Milan |
| Schaeffler | SHA.DE | 4.2 | 4.1 | 0.12 | 6.25 | Frankfurt |
| Ferrari | RACE.MI | 62.5 | 1.7 | 0.35 | 360.80 | Milan |
| Continental AG | CON.DE | 19.7 | 10.3 | 0.45 | 68.40 | Frankfurt |
European Automotive Companies – Fundamentals
| Company | Ticker | Debt/Equity | P/E (TTM) | P/B | EPS (TTM, €) | ROA (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|
| Volkswagen | VOW.DE | 1.2x | 6.5x | 0.7x | 19.20 | 3.1% | 8.5% |
| Mercedes-Benz | MBG.DE | 0.9x | 7.8x | 0.9x | 9.35 | 4.2% | 10.6% |
| BMW | BMW.DE | 0.8x | 8.2x | 1.1x | 10.75 | 4.5% | 12.3% |
| Stellantis | STLAM | 0.6x | 4.3x | 0.8x | 5.40 | 5.8% | 15.0% |
| Renault | RENA.PA | 1.5x | 12.1x | 0.5x | 3.25 | 1.8% | 6.4% |
| Porsche SE | PAH3.DE | 0.3x* | 9.5x | 0.6x | 5.50* | 2.0%* | 7.0%* |
| Rheinmetall | RHM.DE | 0.7x | 14.0x | 2.5x | 26.10 | 6.0% | 18.5% |
| Valeo | FR.PA | 1.4x | 22.4x | 0.9x | 0.85 | 1.5% | 5.2% |
| Brembo | BRE.MI | 0.5x | 18.6x | 3.0x | 0.95 | 6.5% | 14.8% |
| Schaeffler | SHA.DE | 1.1x | 10.2x | 1.2x | 0.60 | 3.0% | 9.1% |
| Ferrari | RACE.MI | 0.4x | 35.0x | 12.0x | 10.40 | 12.0% | 25.0% |
| Continental | CON.DE | 0.9x | 16.8x | 1.4x | 4.20 | 2.8% | 8.0% |
What “6.5x TTM” Means:
- The stock is trading at 6.5 times its earnings over the last 12 months.
- In other words:Investors are paying ₹6.50 for every ₹1.00 of the company’s TTM earnings.
Top Picks – European Automotive Companies
| Company | Ticker | Why? | Key Metrics |
|---|---|---|---|
| Stellantis | STLAM | Best value – Low P/E (4.3x), strong ROCE (15%), lean debt (0.6x) | P/E: 4.3x • ROCE: 15% • D/E: 0.6x |
| BMW | BMW.DE | Balanced play – Solid ROA (4.5%), reasonable P/E (8.2x), low debt | P/E: 8.2x • ROA: 4.5% • D/E: 0.8x |
| Rheinmetall | RHM.DE | High growth – Defense boom, best ROCE (18.5%), strong EPS (€26.10) | ROCE: 18.5% • EPS: €26.10 • P/B: 2.5x |
| Ferrari | RACE.MI | Premium brand – Exceptional ROA (12%) & ROCE (25%), but expensive | ROCE: 25% • P/E: 35x • D/E: 0.4x |
| Brembo | BRE.MI | Underrated supplier – High ROA (6.5%), low debt (0.5x), solid margins | ROA: 6.5% • D/E: 0.5x • P/B: 3.0x |
Piotroski Scores (Q4 2024) for Best European Automotive Companies
| Company | F-Score | Strengths | Weaknesses |
|---|---|---|---|
| Stellantis | 8/9 | High cash flow, low debt, improving margins | Slight share dilution (new EVs) |
| BMW | 7/9 | Strong ROA, cash flow > earnings | Flat asset turnover |
| Rheinmetall | 9/9 | Perfect: Rising margins, no debt, high CF | None (defense boom fuels growth) |
| Ferrari | 7/9 | Elite margins, no leverage | High capex (limited volume growth) |
| Brembo | 8/9 | Low debt, cash-rich, improving efficiency | Minor gross margin pressure |
| Mercedes | 6/9 | Solid profitability | Rising D/E (EV investments) |
| Volkswagen | 5/9 | Strong cash flow | High debt, weak asset turnover |
| Renault | 3/9 | Improving net income | High leverage, negative FCF |
Key Takeaways
- Top Picks (High F-Score):
- Rheinmetall (9/9): Flawless financials (cash flow, margins, no debt).
- Stellantis (8/9) & Brembo (8/9): Near-perfect scores with strong cash generation.
- Caution (Low F-Score):
- Renault (3/9): Debt risks and poor cash flow.
- VW (5/9): Burdened by legacy costs and leverage.
- Luxury Exception:
- Ferrari (7/9): Loses points for asset turnover but wins on profitability.
S&P Credit Ratings – European Automotive Stocks
| Company | Ticker | S&P Rating | Outlook | Key Drivers |
|---|---|---|---|---|
| Volkswagen AG | VOW.DE | BBB+ | Stable | Strong scale, high EV investment risks |
| Mercedes-Benz | MBG.DE | A- | Stable | Luxury margins, solid cash flow |
| BMW Group | BMW.DE | A- | Stable | Robust profitability, low leverage |
| Stellantis | STLAM | BBB | Positive | Cost-cutting success, N.A. dominance |
| Renault | RENA.PA | BB+ | Stable | Weak FCF, restructuring underway |
| Porsche SE | PAH3.DE | NR | – | Holding co. (relies on VW dividends) |
| Rheinmetall | RHM.DE | BBB- | Positive | Defense boom offsets auto cyclicality |
| Valeo | FR.PA | BB | Stable | High debt, supplier margin pressures |
| Brembo | BRE.MI | BBB- | Stable | Niche leadership, healthy balance sheet |
| Schaeffler | SHA.DE | BB+ | Stable | Supplier squeeze, moderate leverage |
| Ferrari | RACE.MI | BBB+ | Positive | Ultra-high margins, low volume risk |
| Continental AG | CON.DE | BBB | Negative | Weak auto demand, high capex needs |
Key Insights
- Highest-Rated:
- Mercedes (A-) & BMW (A-) – Strong luxury branding and balance sheets.
- Ferrari (BBB+) – Exceptionally high profitability offsets low volume.
- Lowest-Rated:
- Renault (BB+) & Valeo (BB) – Junk territory due to weak FCF/debt.
- Schaeffler (BB+) – Supplier margin pressures.
- Improving Outlooks:
- Stellantis (Positive) – Synergies from FCA-PSA merger paying off.
- Rheinmetall (Positive) – Defense orders offsetting auto slowdown.
- Risks Ahead:
- Continental (Negative outlook) – EV transition costs hurting cash flow.
- VW (BBB+) – Heavy EV spend could pressure ratings if margins slip.
What the Ratings Mean
- BBB- or higher: Investment grade (low default risk).
- BB+ or lower: “Junk” status (higher borrowing costs).
- NR: Not rated by S&P (e.g., Porsche SE).
Conclusion : Europe’s Automotive stocks – Future Prospects & Investment Outlook
Future Prospects & Investment Potential
| Company | Short-Term (1-2Y) | Long-Term (5Y+) | Key Catalysts & Risks |
|---|---|---|---|
| Rheinmetall (RHM.DE) | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | Catalyst: Defense boom (NATO spending), EV/ICE hybrid demand. Risk: Geopolitical shifts. |
| Stellantis (STLAM) | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | Catalyst: Cost cuts, U.S. pickup/EV growth. Risk: U.S. recession. |
| BMW (BMW.DE) | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | Catalyst: High-margin luxury EVs, China recovery. Risk: EV price wars. |
| Ferrari (RACE.MI) | ⭐⭐⭐ | ⭐⭐⭐⭐ | Catalyst: Pricing power, hybrid supercars. Risk: Limited volume growth. |
| Brembo (BRE.MI) | ⭐⭐⭐ | ⭐⭐⭐⭐ | Catalyst: Brake tech for EVs, motorsports. Risk: Chinese competition. |
| Mercedes (MBG.DE) | ⭐⭐⭐ | ⭐⭐⭐ | Catalyst: Top-end luxury (Maybach/G-Class). Risk: High EV capex. |
| Volkswagen (VOW.DE) | ⭐⭐ | ⭐⭐⭐ | Catalyst: EV platform scale. Risk: Software delays, high debt. |
| Schaeffler (SHA.DE) | ⭐⭐ | ⭐⭐⭐ | Catalyst: E-mobility components. Risk: Low margins. |
| Continental (CON.DE) | ⭐⭐ | ⭐⭐ | Catalyst: Autonomous tech. Risk: Weak auto demand. |
| Renault (RENA.PA) | ⭐ | ⭐⭐ | Catalyst: Alpine EV spin-off. Risk: Weak balance sheet. |
| Valeo (FR.PA) | ⭐ | ⭐ | Catalyst: ADAS exposure. Risk: Debt, low profitability. |
Short-Term Opportunities (1-2 Years)
- Rheinmetall: Best short-term play due to defense contracts (Ukraine war, NATO budgets).
- Stellantis: Cheapest valuation (P/E 4.3x) + buybacks/dividends.
- BMW: Benefiting from luxury demand resilience in uncertain markets.
Long-Term Winners (5+ Years)
- Ferrari: Ultra-premium moat with hybrid/EV transition (no demand risk).
- Brembo: Critical EV braking systems supplier (tech advantage).
- BMW/Stellantis: Strong EV portfolios (BMW’s Neue Klasse, Stellantis’ 30+ EV models).
So this was the full stocks analysis of Europe’s Automotive Industry & most of the companies stocks. You can decide by yourself by reading Piotroski F Score & other Fundamentals.
Happy Investing