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![jefke00 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1269985450686644225.png) jefke [@jefke00](/creator/twitter/jefke00) on x 1917 followers
Created: 2025-07-21 14:44:07 UTC

In April 2024, I wrote about #INCH and got asked

"Why would you buy Inchcape, and not Stellantis, they're correlated, and Stellantis is way cheaper?"

$STLA was probably trading at 5x FCF at the time, with net cash, vs 10x for Inchcape.

All I could answer at the time was that it was heuristics based:

And the heuristic is: car OEMs because they are "bad businesses" and I just avoid them.

Distributors on the other hand should be less cyclical, less capital intensive/better cash conversion & have higher returns (ROE/ROCE...). More robust in a downturn.

I'm happy had my heuristic.

![](https://pbs.twimg.com/media/GwY44PtWsAAggzA.png)

XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947306602337362160/c:line.svg)

**Related Topics**
[10x](/topic/10x)
[stellantis](/topic/stellantis)
[$inchl](/topic/$inchl)
[$stla](/topic/$stla)

[Post Link](https://x.com/jefke00/status/1947306602337362160)