MICHELIN (CGDE) (ML.PA)

FR001400AJ45 - Common Stock

35.43  +0.11 (+0.31%)

Fundamental Rating

6

Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 27 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making ML a very profitable company, without any liquidiy or solvency issues. ML has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally ML also has an excellent dividend rating. This makes ML very considerable for dividend investing!



8

1. Profitability

1.1 Basic Checks

In the past year ML was profitable.
ML had a positive operating cash flow in the past year.
Each year in the past 5 years ML has been profitable.
ML had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of ML (5.63%) is better than 92.59% of its industry peers.
The Return On Equity of ML (11.04%) is better than 74.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.56%, ML belongs to the top of the industry, outperforming 92.59% 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 6.39%.
The last Return On Invested Capital (9.56%) for ML is above the 3 year average (9.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.63%
ROE 11.04%
ROIC 9.56%
ROA(3y)5.54%
ROA(5y)4.82%
ROE(3y)11.67%
ROE(5y)10.63%
ROIC(3y)9.16%
ROIC(5y)8.51%

1.3 Margins

With an excellent Profit Margin value of 7.00%, ML belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Profit Margin of ML has declined.
The Operating Margin of ML (12.16%) is better than 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 has a Gross Margin (28.04%) which is in line with its industry peers.
ML's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.16%
PM (TTM) 7%
GM 28.04%
OM growth 3Y10.53%
OM growth 5Y-0.4%
PM growth 3Y31.62%
PM growth 5Y-1.53%
GM growth 3Y0.15%
GM growth 5Y-1.05%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ML is creating some value.
Compared to 1 year ago, ML has about the same amount of shares outstanding.
Compared to 5 years ago, ML has less shares outstanding
The debt/assets ratio for ML has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.82 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
ML has a Altman-Z score of 2.82. This is amongst the best in the industry. ML outperforms 88.89% of its industry peers.
ML has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as ML would need 2.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.21, ML belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that ML is not too dependend on debt financing.
ML has a Debt to Equity ratio of 0.33. This is in the better half of the industry: ML outperforms 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.21
Altman-Z 2.82
ROIC/WACC1.42
WACC6.75%

2.3 Liquidity

A Current Ratio of 1.77 indicates that ML should not have too much problems paying its short term obligations.
ML has a Current ratio of 1.77. This is in the better half of the industry: ML outperforms 77.78% of its industry peers.
A Quick Ratio of 1.06 indicates that ML should not have too much problems paying its short term obligations.
ML has a better Quick ratio (1.06) than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.06

3

3. Growth

3.1 Past

ML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.42%.
Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 3.63% on average per year.
ML shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
Measured over the past years, ML shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y3.63%
EPS growth Q2Q-34.15%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Revenue growth Q2Q-6.78%

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 12.88% on average per year.
The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y27.33%
EPS Next 2Y15.93%
EPS Next 3Y12.88%
EPS Next 5YN/A
Revenue Next Year0.51%
Revenue Next 2Y1.45%
Revenue Next 3Y1.85%
Revenue Next 5Y2.23%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.79, which indicates a correct valuation of ML.
Compared to the rest of the industry, the Price/Earnings ratio of ML is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ML to the average of the S&P500 Index (24.95), we can say ML is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.05, the valuation of ML can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ML is valued a bit more expensive than 70.37% of the companies in the same industry.
ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.79
Fwd PE 10.05

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ML.
Industry RankSector Rank
P/FCF 8.3
EV/EBITDA 5.21

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 an outstanding 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 12.88% in the coming years.
PEG (NY)0.47
PEG (5Y)3.52
EPS Next 2Y15.93%
EPS Next 3Y12.88%

7

5. Dividend

5.1 Amount

ML has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
ML's Dividend Yield is rather good when compared to the industry average which is at 3.48. ML pays more dividend than 85.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ML pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.86%

5.2 History

On average, the dividend of ML grows each year by 7.12%, which is quite nice.
Dividend Growth(5Y)7.12%
Div Incr Years4
Div Non Decr Years4

5.3 Sustainability

45.03% of the earnings are spent on dividend by ML. This is a bit on the high side, but may be sustainable.
ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.03%
EPS Next 2Y15.93%
EPS Next 3Y12.88%

MICHELIN (CGDE)

EPA:ML (4/22/2024, 7:00:00 PM)

35.43

+0.11 (+0.31%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.33B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.86%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 12.79
Fwd PE 10.05
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)3.52
Profitability
Industry RankSector Rank
ROA 5.63%
ROE 11.04%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.16%
PM (TTM) 7%
GM 28.04%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.77
Quick Ratio 1.06
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y27.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y