MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
EPA:ML - Euronext Paris - Matif - FR001400AJ45 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 28 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 decent growth rate and is not valued too expensively. 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.
In the past year ML had a positive cash flow from operations.
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
ML has a better Return On Assets (5.04%) than 86.21% of its industry peers.
With a decent Return On Equity value of 10.12%, ML is doing good in the industry, outperforming 75.86% of the companies in the same industry.
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
With an excellent Profit Margin value of 6.93%, ML belongs to the best of the industry, outperforming 93.10% 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.
The Operating Margin of ML (11.72%) is better than 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.
Looking at the Gross Margin, with a value of 28.49%, ML is in line with its industry, outperforming 44.83% of the companies in the same industry.
In the last couple of years the Gross Margin of ML has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ML is still creating some value.
ML has less shares outstanding than it did 1 year ago.
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
ML has an Altman-Z score of 2.58. 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 2.58 is amongst the best of the industry. ML outperforms 86.21% of its industry peers.
ML has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as ML would need 3.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.42, ML belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that ML is not too dependend on debt financing.
ML has a Debt to Equity ratio of 0.31. This is amongst the best in the industry. ML outperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.28
WACC6.81%
2.3 Liquidity
A Current Ratio of 1.76 indicates that ML should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, ML belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
ML has a Quick Ratio of 1.11. This is a normal value and indicates that ML is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.11, ML is doing good in the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for ML have decreased by -5.42% in the last year.
ML shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.64% yearly.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -4.06% in the last year.
Measured over the past years, ML shows a small growth in Revenue. The Revenue has been growing by 2.41% on average per year.
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
The Earnings Per Share is expected to grow by 17.51% on average over the next years. This is quite good.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
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 5Y3.22%
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
Based on the Price/Earnings ratio of 12.72, the valuation of ML can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as ML.
ML is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.40, which indicates a very decent valuation of ML.
ML's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 9.4 |
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 72.41% 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 65.52% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.92 | ||
| EV/EBITDA | 5 |
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.
ML's earnings are expected to grow with 17.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)7.74
EPS Next 2Y23.07%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, ML is a good candidate for dividend investing.
ML's Dividend Yield is a higher than the industry average which is at 5.12.
Compared to an average S&P500 Dividend Yield of 2.40, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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 Years4
Div Non Decr Years4
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.
The dividend of ML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.01%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPA:ML (5/23/2025, 7:00:00 PM)
33.32
-0.15 (-0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.74%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap23.52B
Analysts77.6
Price Target37.15 (11.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP51.01%
Div Incr Years4
Div Non Decr Years4
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)-3.19%
PT rev (3m)-1.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 9.4 | ||
| P/S | 0.86 | ||
| P/FCF | 10.92 | ||
| P/OCF | 5.42 | ||
| P/B | 1.26 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 5 |
EPS(TTM)2.62
EY7.86%
EPS(NY)3.55
Fwd EY10.64%
FCF(TTM)3.05
FCFY9.16%
OCF(TTM)6.14
OCFY18.44%
SpS38.53
BVpS26.39
TBVpS19.38
PEG (NY)0.36
PEG (5Y)7.74
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 | 2.58 |
F-Score5
WACC6.81%
ROIC/WACC1.28
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 5Y3.22%
EBIT growth 1Y-7.52%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year66.93%
EBIT Next 3Y23.28%
EBIT Next 5Y17.57%
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%