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

Fundamental Rating

We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 30 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 correct valuation and a medium growth rate. ML also has an excellent dividend rating. With these ratings, ML could be worth investigating further for dividend investing!.

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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

Looking at the Return On Assets, with a value of 5.04%, ML belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.

ML's Return On Equity of 10.12% is fine compared to the rest of the industry. ML outperforms 73.33% of its industry peers.

ML's Return On Invested Capital of 8.73% is amongst the best of the industry. ML outperforms 86.67% of its industry peers.

The Average Return On Invested Capital over the past 3 years for ML is above the industry average of 6.15%.

		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

ML has a better Profit Margin (6.93%) than 93.33% of its industry peers.

ML's Profit Margin has been stable in the last couple of years.

ML has a Operating Margin of 11.72%. This is amongst the best in the industry. ML outperforms 96.67% of its industry peers.

ML's Operating Margin has been stable in the last couple of years.

Looking at the Gross Margin, with a value of 28.49%, ML is in line with its industry, outperforming 46.67% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 1 year ago, ML has less shares outstanding

Compared to 5 years ago, ML has less shares outstanding

The debt/assets ratio for ML is higher compared to a year ago.

2.2 Solvency

ML has an Altman-Z score of 2.57. 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 Altman-Z score of ML (2.57) is better than 86.67% of its industry peers.

The Debt to FCF ratio of ML is 3.42, which is a good value as it means it would take ML, 3.42 years of fcf income to pay off all of its debts.

ML has a better Debt to FCF ratio (3.42) than 86.67% of its industry peers.

ML has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.

ML's Debt to Equity ratio of 0.31 is amongst the best of the industry. ML outperforms 90.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	3.42
Altman-Z	2.57

ROIC/WACC1.27

WACC6.89%

2.3 Liquidity

ML has a Current Ratio of 1.76. This is a normal value and indicates that ML is financially healthy and should not expect problems in meeting its short term obligations.

The Current ratio of ML (1.76) is better than 90.00% of its industry peers.

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 73.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.76
Quick Ratio	1.11

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.42%.

The Earnings Per Share has been growing slightly by 1.64% on average over the past years.

ML shows a decrease in Revenue. In the last year, the revenue decreased by -4.06%.

The Revenue has been growing slightly by 2.41% on average over the past years.

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

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.

The Revenue is expected to grow by 3.22% on average over the next years.

EPS Next Y35.36%

EPS Next 2Y23.07%

EPS Next 3Y17.51%

EPS Next 5YN/A

Revenue Next Year2.08%

Revenue Next 2Y2.65%

Revenue Next 3Y2.94%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.49, the valuation of ML can be described as correct.

ML's Price/Earnings ratio is in line with the industry average.

Compared to an average S&P500 Price/Earnings ratio of 28.18, ML is valued rather cheaply.

Based on the Price/Forward Earnings ratio of 9.23, the valuation of ML can be described as reasonable.

ML's Price/Forward Earnings is on the same level as the industry average.

The average S&P500 Price/Forward Earnings ratio is at 20.81. ML is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	12.49
Fwd PE	9.23

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 73.33% of the companies listed in the same industry.

Based on the Price/Free Cash Flow ratio, ML is valued a bit more expensive than 60.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	10.72
EV/EBITDA	4.92

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.

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)0.35

PEG (5Y)7.6

EPS Next 2Y23.07%

EPS Next 3Y17.51%

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5. Dividend

5.1 Amount

ML has a Yearly Dividend Yield of 4.29%, which is a nice return.

Compared to an average industry Dividend Yield of 5.47, ML has a dividend in line with 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	4.29%

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%

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MICHELIN (CGDE)

EPA:ML (5/5/2025, 4:54:06 PM)

32.725

+0.02 (+0.08%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupAutomobiles & Components

GICS IndustryAutomobile Components

Earnings (Last)04-24 2025-04-24

Earnings (Next)07-22 2025-07-22

Inst Owners39.74%

Inst Owner ChangeN/A

Ins Owners0%

Ins Owner ChangeN/A

Market Cap23.10B

Analysts77.6

Price Target37.76 (15.39%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.29%

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)-1.24%

PT rev (3m)0.37%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)-0.7%

EPS NY rev (3m)-1.01%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)-1.29%

Revenue NY rev (3m)-1.04%

Valuation

		Industry Rank	Sector Rank
PE	12.49
Fwd PE	9.23
P/S	0.85
P/FCF	10.72
P/OCF	5.33
P/B	1.24
P/tB	1.69
EV/EBITDA	4.92

EPS(TTM)2.62

EY8.01%

EPS(NY)3.55

Fwd EY10.84%

FCF(TTM)3.05

FCFY9.33%

OCF(TTM)6.14

OCFY18.77%

SpS38.53

BVpS26.39

TBVpS19.38

PEG (NY)0.35

PEG (5Y)7.6

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	2.57

F-Score5

WACC6.89%

ROIC/WACC1.27

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 Year2.08%

Revenue Next 2Y2.65%

Revenue Next 3Y2.94%

Revenue Next 5Y3.22%

EBIT growth 1Y-7.52%

EBIT growth 3Y1.98%

EBIT growth 5Y1.14%

EBIT Next Year70.46%

EBIT Next 3Y24.51%

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%

MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens