MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - EPA:ML - FR001400AJ45 - Common Stock
28.43 EUR
-0.52 (-1.8%)
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 31 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 decent growth rate and is not valued too expensively. Finally ML also has an excellent dividend rating. This makes ML very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year ML was profitable.
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
The Return On Assets of ML (4.39%) is better than 90.32% of its industry peers.
The Return On Equity of ML (8.81%) is better than 77.42% of its industry peers.
With a decent Return On Invested Capital value of 8.17%, ML is doing good in the industry, outperforming 77.42% 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 6.95%.
| 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 96.77% of its industry peers.
ML's Profit Margin has been stable in the last couple of years.
ML's Operating Margin of 10.65% is amongst the best of the industry. ML outperforms 96.77% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
ML's Gross Margin of 27.60% is in line compared to the rest of the industry. ML outperforms 51.61% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ML is still 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.
The debt/assets ratio for ML is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.56 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 2.56, ML belongs to the top of the industry, outperforming 87.10% 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.
With a decent Debt to FCF ratio value of 6.05, ML is doing good in the industry, outperforming 77.42% of the companies in the same industry.
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 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.2
WACC6.82%
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 better Current ratio (1.80) than 90.32% 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.
Looking at the Quick ratio, with a value of 1.12, ML belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
| 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%.
ML shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.64% yearly.
The Revenue has decreased by -3.62% in the past year.
ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.41% yearly.
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
ML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.26% yearly.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y0.74%
EPS Next 2Y8.86%
EPS Next 3Y11.26%
EPS Next 5YN/A
Revenue Next Year-4.87%
Revenue Next 2Y-1.29%
Revenue Next 3Y0.41%
Revenue Next 5Y2.85%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ML is valuated correctly with a Price/Earnings ratio of 12.98.
ML's Price/Earnings is on the same level as the industry average.
ML is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.16, which indicates a very decent valuation of ML.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ML is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
ML's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ML is valued a bit more expensive than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.18 | ||
| EV/EBITDA | 4.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ML does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ML may justify a higher PE ratio.
PEG (NY)17.55
PEG (5Y)7.9
EPS Next 2Y8.86%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.89%, which is a nice return.
ML's Dividend Yield is rather good when compared to the industry average which is at 4.68. ML pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 2Y8.86%
EPS Next 3Y11.26%
EPA:ML (11/14/2025, 7:00:00 PM)
28.43
-0.52 (-1.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap20.06B
Revenue(TTM)26.74B
Net Income(TTM)1.56B
Analysts79.17
Price Target32.33 (13.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)-14.22%
PT rev (3m)-14.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-16.83%
EPS NY rev (3m)-25.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.93%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 9.16 | ||
| P/S | 0.75 | ||
| P/FCF | 16.18 | ||
| P/OCF | 5.93 | ||
| P/B | 1.13 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)2.19
EY7.7%
EPS(NY)3.11
Fwd EY10.92%
FCF(TTM)1.76
FCFY6.18%
OCF(TTM)4.79
OCFY16.86%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)17.55
PEG (5Y)7.9
Graham Number35.18
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)10.45%
ROICexc(5y)9.86%
ROICexgc(3y)12.91%
ROICexgc(5y)12.2%
ROCE(3y)11.87%
ROCE(5y)10.97%
ROICexgc growth 3Y-1.17%
ROICexgc growth 5Y0.57%
ROICexc growth 3Y-1.78%
ROICexc growth 5Y0.45%
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 | 2.56 |
F-Score5
WACC6.82%
ROIC/WACC1.2
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 Y0.74%
EPS Next 2Y8.86%
EPS Next 3Y11.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-4.87%
Revenue Next 2Y-1.29%
Revenue Next 3Y0.41%
Revenue Next 5Y2.85%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year59.12%
EBIT Next 3Y22.78%
EBIT Next 5Y17.06%
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%
MICHELIN (CGDE) / ML.PA FAQ
What is the ChartMill fundamental rating of MICHELIN (CGDE) (ML.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ML.PA.
What is the valuation status for ML stock?
ChartMill assigns a valuation rating of 4 / 10 to MICHELIN (CGDE) (ML.PA). This can be considered as Fairly Valued.
How profitable is MICHELIN (CGDE) (ML.PA) stock?
MICHELIN (CGDE) (ML.PA) has a profitability rating of 7 / 10.
What is the financial health of MICHELIN (CGDE) (ML.PA) stock?
The financial health rating of MICHELIN (CGDE) (ML.PA) is 7 / 10.
Is the dividend of MICHELIN (CGDE) sustainable?
The dividend rating of MICHELIN (CGDE) (ML.PA) is 8 / 10 and the dividend payout ratio is 62.4%.