MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:ML • FR001400AJ45
31.31 EUR
-0.04 (-0.13%)
Last: Feb 2, 2026, 12:16 PM
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 decent growth rate and is not valued too expensively. 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.
- ML had a positive operating cash flow in the past year.
- Each year in the past 5 years ML has been profitable.
- Each year in the past 5 years ML had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 4.39%, ML belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
- ML's Return On Equity of 8.81% is amongst the best of the industry. ML outperforms 82.76% of its industry peers.
- ML has a Return On Invested Capital of 8.17%. This is in the better half of the industry: ML outperforms 79.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ML is above the industry average of 6.49%.
| 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
- ML has a Profit Margin of 5.84%. This is amongst the best in the industry. ML outperforms 96.55% of its industry peers.
- In the last couple of years the Profit Margin of ML has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 10.65%, ML belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
- ML's Operating Margin has been stable in the last couple of years.
- The Gross Margin of ML (27.60%) is comparable to the rest of the 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.
- Compared to 1 year ago, ML has less shares outstanding
- The number of shares outstanding for ML has been reduced compared to 5 years ago.
- Compared to 1 year ago, ML has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.62 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ML (2.62) is better than 82.76% of its industry peers.
- The Debt to FCF ratio of ML is 6.17, which is on the high side as it means it would take ML, 6.17 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.17, ML is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
- ML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- ML's Debt to Equity ratio of 0.32 is amongst the best of the industry. ML outperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.17
WACC6.96%
2.3 Liquidity
- ML has a Current Ratio of 1.80. 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 Current ratio (1.80) than 93.10% of its industry peers.
- 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.
- With an excellent Quick ratio value of 1.12, ML belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
| 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%.
- Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 1.64% on average per year.
- 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
- The Earnings Per Share is expected to grow by 10.10% on average over the next years. This is quite good.
- ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y-1.08%
EPS Next 2Y7.31%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year-5.06%
Revenue Next 2Y-1.48%
Revenue Next 3Y0.27%
Revenue Next 5Y3.12%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.30 indicates a correct valuation of ML.
- Compared to the rest of the industry, the Price/Earnings ratio of ML is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, ML is valued a bit cheaper.
- A Price/Forward Earnings ratio of 10.38 indicates a reasonable valuation of ML.
- The rest of the industry has a similar Price/Forward Earnings ratio as ML.
- When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (25.57), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
- ML's Enterprise Value to EBITDA ratio is in line with the industry average.
- 62.07% of the companies in the same industry are cheaper than ML, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
- ML has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.7
EPS Next 2Y7.31%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, ML is a good candidate for dividend investing.
- ML's Dividend Yield is a higher than the industry average which is at 3.01.
- Compared to an average S&P500 Dividend Yield of 1.83, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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
- 62.40% of the earnings are spent on dividend by ML. This is not a sustainable payout ratio.
- The dividend of ML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.4%
EPS Next 2Y7.31%
EPS Next 3Y10.1%
MICHELIN (CGDE) / ML.PA FAQ
What is the ChartMill fundamental rating of MICHELIN (CGDE) (ML.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ML.PA.
What is the valuation status of MICHELIN (CGDE) (ML.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to MICHELIN (CGDE) (ML.PA). This can be considered as Fairly Valued.
How profitable is MICHELIN (CGDE) (ML.PA) stock?
MICHELIN (CGDE) (ML.PA) has a profitability rating of 8 / 10.
How financially healthy is MICHELIN (CGDE)?
The financial health rating of MICHELIN (CGDE) (ML.PA) is 7 / 10.
How sustainable is the dividend of MICHELIN (CGDE) (ML.PA) stock?
The dividend rating of MICHELIN (CGDE) (ML.PA) is 8 / 10 and the dividend payout ratio is 62.4%.