MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - EPA:ML - FR001400AJ45 - Common Stock
27.08 EUR
-0.01 (-0.04%)
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 32 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. This makes ML very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
ML had positive earnings in the past year.
In the past year ML had a positive cash flow from operations.
ML had positive earnings in each of the past 5 years.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ML has a better Return On Assets (4.39%) than 87.50% of its industry peers.
With a decent Return On Equity value of 8.81%, ML is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ML's Return On Invested Capital of 8.17% is fine compared to the rest of the industry. ML outperforms 71.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 7.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 8.81% | ||
| ROIC | 8.17% |
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 5.84%, ML belongs to the top of the industry, outperforming 93.75% 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 has a better Operating Margin (10.65%) than 93.75% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 27.60%, ML is in line with its industry, outperforming 46.88% 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 | 10.65% | ||
| PM (TTM) | 5.84% | ||
| GM | 27.6% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ML is still 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.
ML has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ML (2.52) is better than 87.50% of its industry peers.
ML has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as ML would need 6.05 years to pay back of all of its debts.
The Debt to FCF ratio of ML (6.05) is better than 71.88% of its industry peers.
ML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, ML belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.22
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.80 indicates that ML should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.80, ML belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ML has a Quick Ratio of 1.12. 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 better Quick ratio (1.12) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
ML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.28%.
The Earnings Per Share has been growing slightly by 1.64% on average over the past years.
The Revenue has decreased by -3.62% in the past year.
The Revenue has been growing slightly by 2.41% on average over the past years.
EPS 1Y (TTM)-18.28%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-26.88%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
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 15.63% on average per year.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
EPS Next Y21.13%
EPS Next 2Y18.35%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.2%
Revenue Next 3Y1.31%
Revenue Next 5Y2.47%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.37 indicates a correct valuation of ML.
Based on the Price/Earnings ratio, ML is valued a bit cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, ML is valued rather cheaply.
The Price/Forward Earnings ratio is 7.38, which indicates a rather cheap valuation of ML.
Based on the Price/Forward Earnings ratio, ML is valued a bit cheaper than 62.50% of the companies in the same industry.
ML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ML indicates a slightly more expensive valuation: ML is more expensive than 62.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ML is valued a bit more expensive than the industry average as 71.88% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.41 | ||
| EV/EBITDA | 4.69 |
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.
ML has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ML's earnings are expected to grow with 15.63% in the coming years.
PEG (NY)0.59
PEG (5Y)7.53
EPS Next 2Y18.35%
EPS Next 3Y15.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, ML is a good candidate for dividend investing.
ML's Dividend Yield is rather good when compared to the industry average which is at 4.88. ML pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of ML is nicely growing with an annual growth rate of 7.84%!
Dividend Growth(5Y)7.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
62.40% of the earnings are spent on dividend by ML. This is not a sustainable payout ratio.
ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.4%
EPS Next 2Y18.35%
EPS Next 3Y15.63%
EPA:ML (10/17/2025, 7:00:00 PM)
27.08
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap19.11B
Analysts80
Price Target37.69 (39.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP62.4%
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)-0.41%
PT rev (3m)0.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-10.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 7.38 | ||
| P/S | 0.71 | ||
| P/FCF | 15.41 | ||
| P/OCF | 5.65 | ||
| P/B | 1.08 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)2.19
EY8.09%
EPS(NY)3.67
Fwd EY13.55%
FCF(TTM)1.76
FCFY6.49%
OCF(TTM)4.79
OCFY17.7%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.59
PEG (5Y)7.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 8.81% | ||
| ROCE | 10.41% | ||
| ROIC | 8.17% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 11.66% | ||
| OM | 10.65% | ||
| PM (TTM) | 5.84% | ||
| GM | 27.6% | ||
| FCFM | 4.64% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 107.96% | ||
| Cap/Sales | 8.01% | ||
| Interest Coverage | 9.96 | ||
| Cash Conversion | 70% | ||
| Profit Quality | 79.44% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.52 |
F-Score5
WACC6.71%
ROIC/WACC1.22
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)-18.28%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-26.88%
EPS Next Y21.13%
EPS Next 2Y18.35%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-2%
Revenue Next 2Y0.2%
Revenue Next 3Y1.31%
Revenue Next 5Y2.47%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year59.12%
EBIT Next 3Y22.78%
EBIT Next 5Y17.41%
FCF growth 1Y-20.46%
FCF growth 3Y21.5%
FCF growth 5Y7.22%
OCF growth 1Y-10.1%
OCF growth 3Y14.27%
OCF growth 5Y5.48%