One of the most renowned brands in the automotive industry, Fiat is still a leading company on a global level. Founded 119 years ago – the giant has overcome all the obstacles and multiplied all the successes it had throughout the time. Italian stock broker TradeFW made a unique review of this brand for its investors.
From Fiat to Fiat Chrysler Automobiles
Founded in July 1899 by Giovanni Agnelli, Fiat was an Italian automobile manufacturer. Through its active years, which now represent more than a century-long history; Fiat maintained its status as the largest automobile manufacturer in Europe and the third in the entire world.
In October 2014, after the merge of Fiat S.p.A and the American company Chrysler Group LLC – a new company was born: Fiat Chrysler Automobiles (FCA). When it was launched, the company made public its ambitious business plan that showed its interest to increase the sales with 7 million units and bring revenues to €132 billion; as well as reduce the industrial debt by the end of 2018.
Apart from the two brands; the company operates through several other powerful brands, including Alfa Romeo, Maserati, Dodge, Jeep, Lancia, and Ram Trucks. FCA also owns the following subsidiaries: Magneti, Mopar, Marelli, Comau, and Teksid; and has six operational segments (APAC, NAFTA, LATAM, MASERATI, EMEA & Components) and it expands over 140 countries.
Its legal headquarters are established in the Netherlands, while the main financial headquarters are located in London for tax purposes. FCA is led is led by the executive members of the Board of Directors, with John Elkann as Chairman and Mike Manley as CEO.
Fiat on the Stock Market
Fiat Chrysler Automobiles is publicly listed and can be traded on the Italian Stock Exchange (BIT: FCA), as well as on the New York Stock Exchange (NYSE: FCAU). It is also a FTSE MIB stock market index component. With Fiat’s rich and prestigious history, there is no surprise why FCA is now one of the most profitable companies in the automotive industry!
The brand was launched with a clear five-year plan that was accomplished in a successful way. In 2017, everything ended on a positive note for the company: $133.211 billion in revenue, an operating income of $7.504 billion, $115.637 billion in total assets and a total equity of $25 billion. More than that, in the past five years, it had a positive year on year earnings growth rate of over 20% and the debt (in accordance to the net worth), went down from 307.3% to 72.2%.
As good as their financial strength looks so far, it is expected to get even better, especially for investors! Experts project FCA to have a positive 9.5% annual growth rate in earnings in the next years. In addition, the payout ratio, which indicates the percentage of the Net Income that will be paid in dividends to common shareholder, is expected to remain covered by the earnings and reach 15% in the two years. This forecast is dazzling and it clearly suggests that the Fiat stock will remain a gainful and safe choice in the years to come.
How to successfully invest in the Fiat stock
Stock trading can be quite complex, making it a challenge for both beginning investors and pros. The same golden rule applies to stock trading, as it does to all types of trading: knowledge is power! Your rate of success increases when you make a smart and informed investment. Although the market can be unpredictable, do your best to be as prepared as possible. Start by making a plan and choosing a trading strategy. Test that strategy with a demo account and discover your style and preferences. A big stock like Fiat can be exciting, especially if you decide to take advantage of the market’s volatility and not invest on a long-term. The tricky part is that it can be equally risky if things go in an unexpected way.
Choosing the right broker is just as crucial as getting your dose of information. The quality and outcome of your investment depend on the broker you pick. For example, TradeFW.com is an online stock broker that offers you a great variety of stocks, including Fiat. With great stocks comes great responsibility – that’s why you can see that TradeFw offers prime services and positions itself as a leader. It is registered and authorized to operate by the Cyprus Securities and Exchange Commission (CySEC), which means your capital is safe and your rights are protected by a regulatory body; it has the most popular platform (MT4) and tools; it offers two account types for investors with different interests; and it puts a stellar educational center at your disposal, as well as a trained staff team. You might think that these things don’t matter, but in the end, they are the ones that make the difference!
If Fiat is a great stock is no longer debatable – it is a fact! FCA is a leader on the stock market. Its ambition and achievements indicate the company plans to remain on top for a long time, which makes it one of the best choices an investor could make.