Fundamental Analysis of MICHELIN (CGDE)(EPA:ML) stock

Fundamental Rating

Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 14 industry peers in the Automobile Components industry. ML has a great profitability rating, but there are some minor concerns on its financial health. ML is not valued too expensively and it also shows a decent growth rate.

Profitability

Profitability Rating

ML has a Return On Assets of 5.66%. This is amongst the best returns in the industry. The industry average is 3.39%. ML outperforms 88% of its industry peers.

ML has a Return On Equity of 11.69%. This is better than the industry average of 9.58%.

ML has a Profit Margin of 7.00%. This is amongst the best returns in the industry. The industry average is 1.96%. ML outperforms 100% of its industry peers.

ML has a Piotroski-F score of 6.00. This indicates an average health and profitability for ML.

VS Industry

ROA (5.66%) VS Industry: 88% outperformed.

0.31

6.20

ROE (11.69%) VS Industry: 66% outperformed.

0.77

14.85

Profit Margin (7%) VS Industry: 100% outperformed.

0.26

7.00

Valuation

Valuation Rating

With a Price/Earnings Ratio of 9.78, the valuation of ML can be described as very reasonable.

The Forward Price/Earnings Ratio of 8.85 indicates a rather cheap valuation of ML.

ML's low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

ML's Price/Earning Ratio is in line with the industry average which is at 13.76.

When comparing the current price to the book value of ML, we can conclude it is valued correctly. It is trading at 1.15 times its book value.

Compared to an average industry Enterprise Value to EBITDA ratio of 4.89, ML is valued in line with its industry peers.

Compared to an average industry price book ratio of 0.97, ML is valued more expensive than its industry peers.

VS Industry

Price/Earnings (9.78) VS Industry: 55% outperformed.

37.96

7.05

Price/Book (1.15) VS Industry: 38% outperformed.

2.84

0.06

Enterprise Value/ EBITDA (4.89) VS Industry: 46% outperformed.

12.56

2.73

Growth

Growth Rating

The EPS growth is accelerating: in the next 5 years the growth will be better than in the last years.

The Revenue has grown by 20.15% in the past year. This is a very strong growth!

ML shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 9.77%.

Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 3.66% on average per year.

The Earnings Per Share is expected to grow by 7.63% on average over the next 5 years.

The Revenue has been growing slightly by 5.42% on average over the past 5 years.

The Revenue is expected to grow by 0.75% on average over the next 5 years.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is decreasing.

	5Y	3Y	1Y	1Y	2Y	3Y	5Y
	Past			Future
EPS	3.66%	5.18%	9.77%	10.51%	9.49%	9.02%	7.63%
Revenue	5.42%	5.81%	20.15%	3.51%	3.04%	2.85%	0.75%

Health

Health Rating

ML is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.64.

The Quick Ratio of ML is much better than the industry average of 0.96.

The Debt to Equity ratio of ML is way better than the industry averages.

When comparing the Altman-Z score to an average industry score of 2.16, ML is in better financial health than the average industry peer.

ML has a Current Ratio of 1.67. 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 an Altman-Z score of 2.52. 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.

The Piotroski-F score of ML is 6.00. This is a neutral score and indicates average health and profitability for ML.

A Quick Ratio of 0.97 indicates that ML may have some problems paying its short term obligations.

VS Industry

Debt/Equity (0.31) VS Industry: 76% outperformed.

2.86

0.03

Quick Ratio (0.97) VS Industry: 61% outperformed.

0.56

1.98

Current Ratio (1.67) VS Industry: 69% outperformed.

0.79

2.76

Altman-Z (2.52) VS Industry: 76% outperformed.

1.03

3.56

Dividend

Dividend Rating

ML has a Yearly Dividend Yield of 4.60%, which is a nice return.

Compared to an average industry Dividend Yield of 2.51, 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 2.72.

On average, the dividend of ML grows each year by 6.73%, which is quite nice.

ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.

40.13% of the earnings are spent on dividend by ML. This is a bit on the high side, but may be sustainable.

VS Industry

Dividend Yield (4.6%) VS Industry: 77% outperformed.

0.65

7.61

MICHELIN (CGDE)

EPA:ML (5/29/2023, 7:00:00 PM)

27.47

-0.07 (-0.25%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupAutomobiles & Components

GICS IndustryAutomobile Components

Earnings (Last)N/A N/A

Earnings (Next)N/A N/A

Inst OwnersN/A

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap19.62B

Analysts77.14

Price Target33.35 (21.41%)

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.6%

Dividend Growth(5Y)6.73%

DP40.13%

Div Incr Years2

Div Non Decr Years2

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)-10.88%

Min EPS beat(2)-10.88%

Max EPS beat(2)-10.88%

EPS beat(4)N/A

Avg EPS beat(4)-17.09%

Min EPS beat(4)-23.29%

Max EPS beat(4)-10.88%

Revenue beat(2)1

Avg Revenue beat(2)0.23%

Min Revenue beat(2)0.23%

Max Revenue beat(2)0.23%

Revenue beat(4)1

Avg Revenue beat(4)-0.93%

Min Revenue beat(4)-2.09%

Max Revenue beat(4)0.23%

PT rev (1m)-0.51%

PT rev (3m)1.64%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)0%

EPS NY rev (3m)-1.31%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.33%

Valuation

		Industry Rank	Sector Rank
PE	9.78
Fwd PE	8.85
P/S	0.69
P/FCF	N/A
P/OCF	10.16
P/B	1.15
P/tB	1.52
EV/EBITDA	4.89

EPS(TTM)2.81

EY10.23%

EPS(NY)3.11

Fwd EY11.3%

FCF(TTM)-0.29

FCFYN/A

OCF(TTM)2.7

OCFY9.84%

SpS40.04

BVpS23.96

TBVpS18.03

PEG (NY)0.93

PEG (5Y)2.67

Profitability

		Industry Rank	Sector Rank
ROA	5.66%
ROE	11.69%
ROIC	8.74%
ROICexc	9.67%
ROICexgc	11.71%
OM	10.95%
PM	7%
GM	26.37%

ROICexgc(3y)11.04%

ROICexcg growth 3Y-0.6%

ROICexcg growth 5Y-1.59%

ROICexc(3y)8.97%

ROICexc growth 3Y0.37%

ROICexc growth 5Y-3.19%

OM growth 3Y-4.17%

OM growth 5Y-2.6%

PM growth 3Y-0.98%

PM growth 5Y-1.87%

GM growth 3Y-3.5%

GM growth 5Y-4.12%

F-Score6

Asset Turnover0.81

Health

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	N/A
Debt/EBITDA	1.59
Cap/Depr	114.74%
Profit Quality	N/A
Current Ratio	1.67
Quick Ratio	0.97
Altman-Z	2.52

F-Score6

WACC7.04%

ROIC/WACC1.66

Cap/Depr(3y)94.24%

Cap/Depr(5y)101.9%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

Growth

EPS 1Y9.77%

EPS 3Y5.18%

EPS 5Y3.66%

EPS growth Q2Q44.49%

EPS Next Y10.51%

EPS Next 2Y9.49%

EPS Next 3Y9.02%

EPS Next 5Y7.63%

Revenue growth 1Y20.15%

Revenue growth 3Y5.81%

Revenue growth 5Y5.42%

Revenue growth Q2Q21.41%

Revenue Next Year3.51%

Revenue Next 2Y3.04%

Revenue Next 3Y2.85%

Revenue Next 5Y0.75%

EBIT growth 1Y5.07%

EBIT growth 3Y1.4%

EBIT growth 5Y2.68%

EBIT Next Year61.97%

EBIT Next 3Y21.55%

EBIT Next 5Y16.23%

FCF growth 1Y-117.48%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-33.55%

OCF growth 3Y-16.53%

OCF growth 5Y-6.77%

Fundamental Stock Screener Links

MICHELIN (CGDE) (ML.PA)

Fundamental Rating

Profitability

Profitability Rating

VS Industry

Valuation

Valuation Rating

VS Industry

Growth

Growth Rating

Health

Health Rating

VS Industry

Dividend

Dividend Rating

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