MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - EPA:ML - FR001400AJ45 - Common Stock
31.5 EUR
-0.01 (-0.03%)
Overall ML gets a fundamental rating of 6 out of 10. We evaluated ML against 28 industry peers in the Automobile Components industry. While ML belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ML has a correct valuation and a medium growth rate. Finally ML also has an excellent dividend rating. These ratings could make ML a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ML was profitable.
ML had a positive operating cash flow in the past year.
In the past 5 years ML has always been profitable.
In the past 5 years ML always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ML (4.39%) is better than 89.29% of its industry peers.
Looking at the Return On Equity, with a value of 8.81%, ML is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.17%, ML is doing good in the industry, outperforming 78.57% 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 6.78%.
| 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 better Profit Margin (5.84%) than 96.43% of its industry peers.
ML's Profit Margin has been stable in the last couple of years.
The Operating Margin of ML (10.65%) is better than 96.43% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
ML's Gross Margin of 27.60% is in line compared to the rest of the industry. ML outperforms 46.43% of its industry peers.
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.
ML has less shares outstanding than it did 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 2.62. 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 has a better Altman-Z score (2.62) than 85.71% 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.
ML has a Debt to FCF ratio of 6.05. This is in the better half of the industry: ML outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ML is not too dependend on debt financing.
The Debt to Equity ratio of ML (0.32) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.62 |
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.
With an excellent Current ratio value of 1.80, ML belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that ML should not have too much problems paying its short term obligations.
ML has a better Quick ratio (1.12) than 78.57% 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%.
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.
ML shows a decrease in Revenue. In the last year, the revenue decreased by -3.62%.
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 16.31% on average per year.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y22.75%
EPS Next 2Y19.47%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue Next Year-1.64%
Revenue Next 2Y0.47%
Revenue Next 3Y1.52%
Revenue Next 5Y2.56%
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
ML is valuated correctly with a Price/Earnings ratio of 14.38.
ML's Price/Earnings is on the same level as the industry average.
ML is valuated rather cheaply when we compare the Price/Earnings ratio to 27.43, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.42, which indicates a very decent valuation of ML.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ML is on the same level as its industry peers.
ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
ML's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ML is more expensive than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ML indicates a slightly more expensive valuation: ML is more expensive than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 5.34 |
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 16.31% in the coming years.
PEG (NY)0.63
PEG (5Y)8.76
EPS Next 2Y19.47%
EPS Next 3Y16.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, ML is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.81, ML pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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
ML pays out 62.40% of its income as dividend. 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 2Y19.47%
EPS Next 3Y16.31%
EPA:ML (9/12/2025, 5:29:00 PM)
31.5
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.91%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.23B
Analysts80.87
Price Target37.84 (20.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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)0.99%
PT rev (3m)-0.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.31%
EPS NY rev (3m)-9.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 8.42 | ||
| P/S | 0.83 | ||
| P/FCF | 17.93 | ||
| P/OCF | 6.57 | ||
| P/B | 1.25 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)2.19
EY6.95%
EPS(NY)3.74
Fwd EY11.87%
FCF(TTM)1.76
FCFY5.58%
OCF(TTM)4.79
OCFY15.22%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.63
PEG (5Y)8.76
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 | 2.62 |
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 Y22.75%
EPS Next 2Y19.47%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-1.64%
Revenue Next 2Y0.47%
Revenue Next 3Y1.52%
Revenue Next 5Y2.56%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year66.93%
EBIT Next 3Y23.28%
EBIT Next 5Y17.51%
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%