MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
EPA:ML - Euronext Paris - Matif - FR001400AJ45 - Common Stock - Currency: EUR
Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 29 industry peers in the Automobile Components industry. ML has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ML has a correct valuation and a medium growth rate. ML also has an excellent dividend rating. With these ratings, ML could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
ML had positive earnings in the past year.
ML had a positive operating cash flow in the past year.
In the past 5 years ML has always been profitable.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ML has a Return On Assets of 5.04%. This is amongst the best in the industry. ML outperforms 89.66% of its industry peers.
ML has a Return On Equity of 10.12%. This is in the better half of the industry: ML outperforms 79.31% of its industry peers.
The Return On Invested Capital of ML (8.73%) is better than 82.76% of its industry peers.
ML had an Average Return On Invested Capital over the past 3 years of 9.25%. This is above the industry average of 6.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROIC | 8.73% |
ROA(3y)5.45%
ROA(5y)4.73%
ROE(3y)10.95%
ROE(5y)10.02%
ROIC(3y)9.25%
ROIC(5y)8.5%
1.3 Margins
Looking at the Profit Margin, with a value of 6.93%, ML belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
In the last couple of years the Profit Margin of ML has remained more or less at the same level.
ML's Operating Margin of 11.72% is amongst the best of the industry. ML outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of ML has remained more or less at the same level.
With a Gross Margin value of 28.49%, ML perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
ML's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.72% | ||
| PM (TTM) | 6.93% | ||
| GM | 28.49% |
OM growth 3Y-2.46%
OM growth 5Y-1.24%
PM growth 3Y-3.58%
PM growth 5Y-0.79%
GM growth 3Y-0.99%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ML is creating some value.
The number of shares outstanding for ML has been reduced compared to 1 year ago.
The number of shares outstanding for ML has been reduced compared to 5 years ago.
The debt/assets ratio for ML is higher compared to a year ago.
2.2 Solvency
ML has an Altman-Z score of 2.56. This is not the best score and indicates that ML is in the grey zone with still only limited risk for bankruptcy at the moment.
ML's Altman-Z score of 2.56 is amongst the best of the industry. ML outperforms 86.21% of its industry peers.
The Debt to FCF ratio of ML is 3.42, which is a good value as it means it would take ML, 3.42 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.42, ML belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that ML is not too dependend on debt financing.
The Debt to Equity ratio of ML (0.31) is better than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.29
WACC6.75%
2.3 Liquidity
ML has a Current Ratio of 1.76. This is a normal value and indicates that ML is financially healthy and should not expect problems in meeting its short term obligations.
ML has a Current ratio of 1.76. This is amongst the best in the industry. ML outperforms 89.66% of its industry peers.
A Quick Ratio of 1.11 indicates that ML should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, ML is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.42%.
The Earnings Per Share has been growing slightly by 1.64% on average over the past years.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -4.06% in the last year.
The Revenue has been growing slightly by 2.41% on average over the past years.
EPS 1Y (TTM)-5.42%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.87%
3.2 Future
Based on estimates for the next years, ML will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.51% on average per year.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue Next Year0.83%
Revenue Next 2Y2%
Revenue Next 3Y2.43%
Revenue Next 5Y3.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.29, ML is valued correctly.
ML's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ML to the average of the S&P500 Index (27.30), we can say ML is valued rather cheaply.
ML is valuated reasonably with a Price/Forward Earnings ratio of 9.08.
ML's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
65.52% of the companies in the same industry are cheaper than ML, based on the Enterprise Value to EBITDA ratio.
ML's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ML is more expensive than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
ML's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ML may justify a higher PE ratio.
ML's earnings are expected to grow with 17.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)7.48
EPS Next 2Y23.07%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.23%, which is a nice return.
ML's Dividend Yield is a higher than the industry average which is at 4.93.
Compared to an average S&P500 Dividend Yield of 2.35, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
On average, the dividend of ML grows each year by 7.84%, which is quite nice.
Dividend Growth(5Y)7.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ML pays out 51.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.01%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPA:ML (7/11/2025, 7:00:00 PM)
32.19
-0.41 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.91%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.72B
Analysts80
Price Target37.91 (17.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP51.01%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.1%
PT rev (3m)-1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 9.08 | ||
| P/S | 0.84 | ||
| P/FCF | 10.55 | ||
| P/OCF | 5.24 | ||
| P/B | 1.22 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)2.62
EY8.14%
EPS(NY)3.55
Fwd EY11.02%
FCF(TTM)3.05
FCFY9.48%
OCF(TTM)6.14
OCFY19.09%
SpS38.53
BVpS26.39
TBVpS19.38
PEG (NY)0.35
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROCE | 11.13% | ||
| ROIC | 8.73% | ||
| ROICexc | 10.35% | ||
| ROICexgc | 13.02% | ||
| OM | 11.72% | ||
| PM (TTM) | 6.93% | ||
| GM | 28.49% | ||
| FCFM | 7.92% |
ROA(3y)5.45%
ROA(5y)4.73%
ROE(3y)10.95%
ROE(5y)10.02%
ROIC(3y)9.25%
ROIC(5y)8.5%
ROICexc(3y)10.37%
ROICexc(5y)9.81%
ROICexgc(3y)12.78%
ROICexgc(5y)12.13%
ROCE(3y)11.87%
ROCE(5y)10.97%
ROICexcg growth 3Y-1.65%
ROICexcg growth 5Y0.27%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y0.21%
OM growth 3Y-2.46%
OM growth 5Y-1.24%
PM growth 3Y-3.58%
PM growth 5Y-0.79%
GM growth 3Y-0.99%
GM growth 5Y-0.59%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 110.04% | ||
| Cap/Sales | 8.02% | ||
| Interest Coverage | 12.7 | ||
| Cash Conversion | 83.87% | ||
| Profit Quality | 114.33% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.56 |
F-Score5
WACC6.75%
ROIC/WACC1.29
Cap/Depr(3y)113.8%
Cap/Depr(5y)101.88%
Cap/Sales(3y)7.8%
Cap/Sales(5y)7.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.42%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-5.56%
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.87%
Revenue Next Year0.83%
Revenue Next 2Y2%
Revenue Next 3Y2.43%
Revenue Next 5Y3.24%
EBIT growth 1Y-7.52%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year66.93%
EBIT Next 3Y23.28%
EBIT Next 5Y17.83%
FCF growth 1Y-29.4%
FCF growth 3Y21.5%
FCF growth 5Y7.22%
OCF growth 1Y-17.99%
OCF growth 3Y14.27%
OCF growth 5Y5.48%