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

Europe - EPA:ML - FR001400AJ45 - Common Stock

31.19 EUR
-0.07 (-0.22%)
Last: 9/16/2025, 5:36:15 PM
Fundamental Rating

6

Overall ML gets a fundamental rating of 6 out of 10. We evaluated ML against 29 industry peers in the Automobile Components industry. ML scores excellent on profitability, but 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. This makes ML very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year ML was profitable.
ML had a positive operating cash flow in the past year.
ML had positive earnings in each of the past 5 years.
Each year in the past 5 years ML had a positive operating cash flow.
ML.PA Yearly Net Income VS EBIT VS OCF VS FCFML.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

1.2 Ratios

The Return On Assets of ML (4.39%) is better than 89.66% of its industry peers.
With a decent Return On Equity value of 8.81%, ML is doing good in the industry, outperforming 79.31% of the companies in the same industry.
The Return On Invested Capital of ML (8.17%) is better than 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 6.57%.
Industry RankSector 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%
ML.PA Yearly ROA, ROE, ROICML.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

ML has a Profit Margin of 5.84%. This is amongst the best in the industry. ML outperforms 96.55% 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 96.55% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 27.60%, ML perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
ML's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ML.PA Yearly Profit, Operating, Gross MarginsML.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

6

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.
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.
ML has a worse debt/assets ratio than last year.
ML.PA Yearly Shares OutstandingML.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
ML.PA Yearly Total Debt VS Total AssetsML.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

An Altman-Z score of 2.62 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, ML belongs to the top of the industry, outperforming 82.76% 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.
ML has a Debt to FCF ratio of 6.05. This is in the better half of the industry: ML outperforms 72.41% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ML is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.32, ML belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 6.05
Altman-Z 2.62
ROIC/WACC1.22
WACC6.71%
ML.PA Yearly LT Debt VS Equity VS FCFML.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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 has a Current ratio of 1.80. This is amongst the best in the industry. ML outperforms 89.66% of its industry peers.
ML has a Quick Ratio of 1.12. This is a normal value and indicates that ML is financially healthy and should not expect problems in meeting its short term obligations.
ML has a better Quick ratio (1.12) than 79.31% of its industry peers.
Industry RankSector Rank
Current Ratio 1.8
Quick Ratio 1.12
ML.PA Yearly Current Assets VS Current LiabilitesML.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

4

3. Growth

3.1 Past

The earnings per share for ML have decreased strongly by -18.28% 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.
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.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y22.75%
EPS Next 2Y19.47%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue Next Year-1.8%
Revenue Next 2Y0.24%
Revenue Next 3Y1.32%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ML.PA Yearly Revenue VS EstimatesML.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
ML.PA Yearly EPS VS EstimatesML.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.24 indicates a correct valuation of ML.
ML's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, ML is valued a bit cheaper.
The Price/Forward Earnings ratio is 8.34, which indicates a very decent valuation of ML.
The rest of the industry has a similar Price/Forward Earnings ratio as ML.
ML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
Industry RankSector Rank
PE 14.24
Fwd PE 8.34
ML.PA Price Earnings VS Forward Price EarningsML.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ML is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
65.52% of the companies in the same industry are cheaper than ML, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.75
EV/EBITDA 5.3
ML.PA Per share dataML.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
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)8.67
EPS Next 2Y19.47%
EPS Next 3Y16.31%

7

5. Dividend

5.1 Amount

ML has a Yearly Dividend Yield of 4.38%, which is a nice return.
Compared to an average industry Dividend Yield of 4.68, 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 2.38.
Industry RankSector Rank
Dividend Yield 4.38%

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
ML.PA Yearly Dividends per shareML.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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 2Y19.47%
EPS Next 3Y16.31%
ML.PA Yearly Income VS Free CF VS DividendML.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B
ML.PA Dividend Payout.ML.PA Dividend Payout, showing the Payout Ratio.ML.PA Dividend Payout.PayoutRetained Earnings

MICHELIN (CGDE)

EPA:ML (9/16/2025, 5:36:15 PM)

31.19

-0.07 (-0.22%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)07-24 2025-07-24/amc
Earnings (Next)02-22 2026-02-22/amc
Inst Owners39.91%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.01B
Analysts80.87
Price Target37.84 (21.32%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.38%
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%
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)-0.4%
Revenue NY rev (3m)-2.61%
Valuation
Industry RankSector Rank
PE 14.24
Fwd PE 8.34
P/S 0.82
P/FCF 17.75
P/OCF 6.51
P/B 1.24
P/tB 1.69
EV/EBITDA 5.3
EPS(TTM)2.19
EY7.02%
EPS(NY)3.74
Fwd EY11.99%
FCF(TTM)1.76
FCFY5.63%
OCF(TTM)4.79
OCFY15.37%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.63
PEG (5Y)8.67
Profitability
Industry RankSector 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 RankSector 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-1.8%
Revenue Next 2Y0.24%
Revenue Next 3Y1.32%
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%