Stellantis, VOW, Mercedes, BMW Are Cheap! Possible 2X!

Automotive stocks look cheap with PE ratios below 3 and dividends around 10%. How is that possible? Well, the cycle explains it all. Stellantis has a dividend yield of 11%, but with the developments on the market, that will likely change. Same for Volkswagen, BMW and Mercedes. Tesla is, as always, in a different world.

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0:00 Car Stocks
0:58 Stellantis
3:47 Volkswagen
4:19 Mercedes
6:12 Tesla
8:20 Recession
8:53 DEBT
10:23 VALUE INVESTING

[BG-mwpt]

on your last point, buffett has a good rule, always check how a company's financials look like during a recession, before investing.

[Staffan-vs]

I worked for Agfa in the transition from analogue to digital photo.

The business models completely changed with digital photo and Agfa and Kodak disappeared.

Only Fujifilm survived the change after changing industry to cosmetics and pharma.

I also expect big changes in the car industry and this change will be very difficult for the traditional manufactures.

It is not easy to make VW with 650.000 employees into a nimble software driven company.

They are so invested in the old ways of the industry.

We will see who will survive.

[inigo]

Buffet has invested many times in car companies. The last ones, GM and BYD not so long ago. It is fine to keep aside if this is not your circle of competence, but this is a clear value investment situation and there is a good risk reward from these prices.

[Dimitris_]

Market cap is very different to enterprise value for carmakers, they have so much debt. If the PE is 3 the price to enterprise value might be 6. PE by itself doesn’t mean anything

[CraigThomson-gq]

THANKS SVEN. I WILL GIVE THE CAR COMPANIES A PASS. CHEERS

[daveandjanwoolf]

Stellantis down so far today 14% - it is not a goody buy just a good bye

[rogueinvestor]

They make overpriced low quality cars that don’t last and cost a fortune to repair. No wonder why the stocks are cheap.

[GionnyChannel]

Hi Sven, what about an update on Rubis?

[tanya]

Stellantis holds many good car companies. I think it will grow

[MTawfik]

Can you give me one example of a value stock to you right now?
Any big company to get to this low valuation, there should be some negativity around it

[bossman]

Great video. Mercedes is NOT a risky stock to buy at current valuation. Tesla stock is the most Risky of the two. Mercedes currently 57.5 Tesla currently 257. Lets see how this holds up
Remember if you buy mercedes stock at least you will receive a dividend payment in may for at least 7 - 9% which can offset some of the risk. People buy tesla based on Elons promises and keep forgetting that these promises are taking longer that he said and may never happen. No other CEO could get away with this. I drive a Tesla model S by the way.

[varifra]

Welcome back Sven after your long and wealthy vacation !

[TomasVbcn]

Classic Sven take-down. Good to have you back 😊

[lettuceforbuns]

not too surprising - there's a slowdown because people don't have money to buy a car - any car - but when it comes buying the next car it'll be an EV. People I've spoken to want to switch because it's cheaper (even with cheaper oil prices) than an ICE. When the consumer situation improves, so will these EV companies. Thanks again for the great analysis!

[FrankQC]

wow, very smart Sven, thank-you. Have a nice day.

[roelandreijtenbagh]

good insights on the financing of these car companies. This is why I follow you.Thanks Sven!

[methos]

Been catching up on how pretty much everybody - employees, investors, customers, dealers - so really EVERYONE hates Stellantis management right now. I would steer clear of this sort of company no matter the price.

[mohamadsaleh]

Hi Sven. Already got 400 shares of STLA at $15. I can wait a few years. It's a small position but I think it's worth the risk

[laciepyu]

Bought a first tranche today of Stellantis.

[Attanalla]

Thank you Sven. Looking forward to an update on lithium, which according to some industry insiders has bottomed.