MICHELIN (CGDE) (ML.PA)
FR001400AJ45 - Common Stock
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 gets an excellent profitability rating and is at the same time showing great financial health properties. ML is valued correctly, but it does not seem to be growing. Finally ML also has an excellent dividend rating. These ratings would make ML suitable for dividend investing!
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 5.63%, ML belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With a decent Return On Equity value of 11.04%, ML is doing good in the industry, outperforming 76.67% of the companies in the same industry.
The Return On Invested Capital of ML (9.56%) is better than 90.00% of its industry peers.
ML had an Average Return On Invested Capital over the past 3 years of 9.16%. This is above the industry average of 6.91%.
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 Rank | Sector 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
ML's Profit Margin of 7.00% is amongst the best of the industry. ML outperforms 93.33% of its industry peers.
ML's Profit Margin has declined in the last couple of years.
The Operating Margin of ML (12.16%) is better than 96.67% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
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 Rank | Sector 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%
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 about the same amount of shares outstanding.
The number of shares outstanding for ML has been reduced compared to 5 years ago.
The debt/assets ratio for ML has been reduced compared to a year ago.
2.2 Solvency
ML has an Altman-Z score of 2.84. 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.
With an excellent Altman-Z score value of 2.84, ML belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of ML is 2.21, which is a good value as it means it would take ML, 2.21 years of fcf income to pay off 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.
ML has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
ML's Debt to Equity ratio of 0.33 is amongst the best of the industry. ML outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.36
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.77 indicates that ML should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, ML belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
ML has a Quick Ratio of 1.06. 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 (1.06) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.06 |
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%.
ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y3.63%
EPS Q2Q%-34.15%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Sales 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 14.08% on average per year.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y28.98%
EPS Next 2Y17.06%
EPS Next 3Y14.08%
EPS Next 5YN/A
Revenue Next Year-0.1%
Revenue Next 2Y1.46%
Revenue Next 3Y1.93%
Revenue Next 5Y3.19%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.12, the valuation of ML can be described as correct.
60.00% of the companies in the same industry are cheaper than ML, based on the Price/Earnings ratio.
ML is valuated rather cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
ML is valuated reasonably with a Price/Forward Earnings ratio of 10.17.
Based on the Price/Forward Earnings ratio, ML is valued more expensive than 80.00% of the companies in the same industry.
ML's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 10.17 |
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 73.33% of the companies in the same industry.
ML's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 5.32 |
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 excellent profitability rating of ML may justify a higher PE ratio.
A more expensive valuation may be justified as ML's earnings are expected to grow with 14.08% in the coming years.
PEG (NY)0.45
PEG (5Y)3.61
EPS Next 2Y17.06%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 3.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.89, 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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
ML pays out 45.03% of its income as dividend. 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 2Y17.06%
EPS Next 3Y14.08%
MICHELIN (CGDE)
EPA:ML (7/26/2024, 12:30:19 PM)
36.35
+0.23 (+0.64%)
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 Cap25.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 10.17 | ||
| 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)0.45
PEG (5Y)3.61
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.42%
EPS 3Y46.69%
EPS 5Y
EPS Q2Q%
EPS Next Y28.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.46%
Revenue growth 5Y
Sales 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