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 27 industry peers in the Automobile Components industry. ML gets an excellent profitability rating and is at the same time showing great financial health properties. ML is not valued too expensively and it also shows a decent growth rate. Finally 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.
In the past 5 years ML has always been profitable.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.39%, ML belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.81%, ML is in the better half of the industry, outperforming 77.78% 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 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 6.81%.
| 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 96.30% of its industry peers.
ML's Profit Margin has been stable in the last couple of years.
ML has a Operating Margin of 10.65%. This is amongst the best in the industry. ML outperforms 96.30% of its industry peers.
In the last couple of years the Operating Margin of ML has remained more or less at the same level.
ML's Gross Margin of 27.60% is in line compared to the rest of the industry. ML outperforms 48.15% of its industry peers.
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 | 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
ML has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ML has less shares outstanding
ML has less shares outstanding than it did 5 years ago.
ML has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.65 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.65, ML belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
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.
The Debt to FCF ratio of ML (6.05) is better than 70.37% 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 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.21
WACC6.74%
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's Current ratio of 1.80 is amongst the best of the industry. ML outperforms 88.89% of its industry peers.
A Quick Ratio of 1.12 indicates that ML should not have too much problems paying its short term obligations.
The Quick ratio of ML (1.12) is better than 81.48% 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%.
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)-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 17.51% on average per year.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue Next Year-1.4%
Revenue Next 2Y0.66%
Revenue Next 3Y1.67%
Revenue Next 5Y2.54%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.85, ML is valued correctly.
ML's Price/Earnings is on the same level as the industry average.
ML's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.86.
ML is valuated reasonably with a Price/Forward Earnings ratio of 8.20.
ML's Price/Forward Earnings is on the same level as the industry average.
ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 8.2 |
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 70.37% 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 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.51 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ML 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)0.42
PEG (5Y)9.04
EPS Next 2Y23.07%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.33%, which is a nice return.
Compared to an average industry Dividend Yield of 4.86, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 2Y23.07%
EPS Next 3Y17.51%
EPA:ML (8/21/2025, 5:36:15 PM)
32.53
-0.24 (-0.73%)
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 Cap22.96B
Analysts80
Price Target37.84 (16.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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)-0.19%
PT rev (3m)1.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.22%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 8.2 | ||
| P/S | 0.86 | ||
| P/FCF | 18.51 | ||
| P/OCF | 6.79 | ||
| P/B | 1.3 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 5.52 |
EPS(TTM)2.19
EY6.73%
EPS(NY)3.97
Fwd EY12.2%
FCF(TTM)1.76
FCFY5.4%
OCF(TTM)4.79
OCFY14.74%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.42
PEG (5Y)9.04
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 | 2.65 |
F-Score5
WACC6.74%
ROIC/WACC1.21
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 Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-1.4%
Revenue Next 2Y0.66%
Revenue Next 3Y1.67%
Revenue Next 5Y2.54%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year66.93%
EBIT Next 3Y23.28%
EBIT Next 5Y17.49%
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%