MICHELIN (CGDE) (ML.PA)

FR001400AJ45 - Common Stock

35.52  -0.16 (-0.45%)

Fundamental Rating

6

ML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. ML scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ML has a valuation in line with the averages, but it does not seem to be growing. Finally ML also has an excellent dividend rating. These ratings could make ML a good candidate for dividend investing.



8

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

The Return On Assets of ML (5.63%) is better than 93.10% of its industry peers.
ML has a Return On Equity of 11.04%. This is in the better half of the industry: ML outperforms 75.86% of its industry peers.
With an excellent Return On Invested Capital value of 9.56%, ML belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ML is above the industry average of 6.80%.
The 3 year average ROIC (9.16%) for ML is below the current ROIC(9.56%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.63%
ROE 11.04%
ROIC 9.56%
ROA(3y)5.54%
ROA(5y)4.82%
ROE(3y)11.67%
ROE(5y)10.63%
ROIC(3y)9.16%
ROIC(5y)8.51%

1.3 Margins

ML has a better Profit Margin (7.00%) than 93.10% of its industry peers.
ML's Profit Margin has declined in the last couple of years.
ML has a Operating Margin of 12.16%. This is amongst the best in 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.
The Gross Margin of ML (28.04%) is comparable to the rest of the industry.
ML's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.16%
PM (TTM) 7%
GM 28.04%
OM growth 3Y10.53%
OM growth 5Y-0.4%
PM growth 3Y31.62%
PM growth 5Y-1.53%
GM growth 3Y0.15%
GM growth 5Y-1.05%

7

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.
ML has about the same amout of shares outstanding than it did 1 year ago.
ML has less shares outstanding than it did 5 years ago.
ML has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.83 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.83, ML belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
ML has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as ML would need 2.21 years to pay back of all of its debts.
ML's Debt to FCF ratio of 2.21 is amongst the best of the industry. ML outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that ML is not too dependend on debt financing.
ML has a better Debt to Equity ratio (0.33) than 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.21
Altman-Z 2.83
ROIC/WACC1.44
WACC6.62%

2.3 Liquidity

ML has a Current Ratio of 1.77. 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 1.77. This is in the better half of the industry: ML outperforms 75.86% of its industry peers.
ML has a Quick Ratio of 1.06. 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 Quick ratio of 1.06. This is in the better half of the industry: ML outperforms 68.97% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.06

3

3. Growth

3.1 Past

The earnings per share for ML have decreased by -1.42% in the last year.
Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 3.63% on average per year.
ML shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y3.63%
EPS growth Q2Q-34.15%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Revenue growth Q2Q-6.78%

3.2 Future

ML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.74% yearly.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y26.72%
EPS Next 2Y15.83%
EPS Next 3Y12.74%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y1.53%
Revenue Next 3Y1.82%
Revenue Next 5Y2.23%

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 decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.82 indicates a correct valuation of ML.
ML's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.48. ML is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.12, the valuation of ML can be described as very reasonable.
72.41% of the companies in the same industry are cheaper than ML, based on the Price/Forward Earnings ratio.
ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.82
Fwd PE 10.12

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 75.86% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ML.
Industry RankSector Rank
P/FCF 8.32
EV/EBITDA 5.26

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 excellent profitability rating of ML may justify a higher PE ratio.
A more expensive valuation may be justified as ML's earnings are expected to grow with 12.74% in the coming years.
PEG (NY)0.48
PEG (5Y)3.53
EPS Next 2Y15.83%
EPS Next 3Y12.74%

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5. Dividend

5.1 Amount

ML has a Yearly Dividend Yield of 3.79%.
Compared to an average industry Dividend Yield of 3.59, ML pays a bit more dividend than its industry peers.
ML's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 3.79%

5.2 History

The dividend of ML is nicely growing with an annual growth rate of 7.12%!
Dividend Growth(5Y)7.12%
Div Incr Years4
Div Non Decr Years4

5.3 Sustainability

45.03% of the earnings are spent on dividend by ML. 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.
DP45.03%
EPS Next 2Y15.83%
EPS Next 3Y12.74%

MICHELIN (CGDE)

EPA:ML (3/28/2024, 7:00:00 PM)

35.52

-0.16 (-0.45%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.40B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.79%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 12.82
Fwd PE 10.12
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)3.53
Profitability
Industry RankSector Rank
ROA 5.63%
ROE 11.04%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.16%
PM (TTM) 7%
GM 28.04%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.77
Quick Ratio 1.06
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y