MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ML - FR001400AJ45 - Common Stock
28.03 EUR
+0.06 (+0.21%)
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 29 industry peers in the Automobile Components industry. ML has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
ML had positive earnings in each of the past 5 years.
In the past 5 years ML always reported a positive cash flow from operatings.
1.2 Ratios
ML has a better Return On Assets (4.39%) than 90.00% of its industry peers.
ML has a Return On Equity of 8.81%. This is amongst the best in the industry. ML outperforms 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.17%, ML belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
ML had an Average Return On Invested Capital over the past 3 years of 9.25%. This is above the industry average of 6.47%.
| 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 better Profit Margin (5.84%) than 96.67% of its industry peers.
In the last couple of years the Profit Margin of ML has remained more or less at the same level.
ML has a Operating Margin of 10.65%. This is amongst the best in the industry. ML outperforms 96.67% 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 (27.60%) which is comparable to the rest of the industry.
ML's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, ML has less shares outstanding
Compared to 1 year ago, ML has a worse debt to assets ratio.
2.2 Solvency
ML has an Altman-Z score of 2.54. 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 2.54, ML belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of ML is 6.05, which is on the high side as it means it would take ML, 6.05 years of fcf income to pay off all of its debts.
ML's Debt to FCF ratio of 6.05 is fine compared to the rest of the industry. ML outperforms 80.00% of its industry peers.
ML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.32, ML belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.21
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.80 indicates that ML should not have too much problems paying its short term obligations.
ML has a better Current ratio (1.80) than 90.00% 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.
With an excellent Quick ratio value of 1.12, ML belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.12 |
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.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -3.62% in the last year.
Measured over the past years, ML shows a small growth in Revenue. The Revenue has been growing by 2.41% on average per year.
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 11.17% on average per year.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y0.52%
EPS Next 2Y8.73%
EPS Next 3Y11.17%
EPS Next 5YN/A
Revenue Next Year-4.91%
Revenue Next 2Y-1.32%
Revenue Next 3Y0.38%
Revenue Next 5Y3.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.80 indicates a correct valuation of ML.
ML's Price/Earnings ratio is in line with the industry average.
ML's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.49.
The Price/Forward Earnings ratio is 9.05, which indicates a very decent valuation of ML.
ML's Price/Forward Earnings is on the same level as the industry average.
ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
ML's Enterprise Value to EBITDA is on the same level as the industry average.
ML's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.06 | ||
| EV/EBITDA | 4.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ML has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)24.85
PEG (5Y)7.79
EPS Next 2Y8.73%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 4.82, ML pays a better dividend. On top of this ML pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
5.3 Sustainability
62.40% of the earnings are spent on dividend by ML. This is not a sustainable payout ratio.
ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.4%
EPS Next 2Y8.73%
EPS Next 3Y11.17%
EPA:ML (12/5/2025, 7:00:00 PM)
28.03
+0.06 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.46%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap19.92B
Revenue(TTM)26.74B
Net Income(TTM)1.56B
Analysts78.33
Price Target32.34 (15.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)0.05%
PT rev (3m)-14.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-18.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.74 | ||
| P/FCF | 16.06 | ||
| P/OCF | 5.89 | ||
| P/B | 1.12 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)2.19
EY7.81%
EPS(NY)3.1
Fwd EY11.05%
FCF(TTM)1.75
FCFY6.23%
OCF(TTM)4.76
OCFY16.99%
SpS37.63
BVpS24.94
TBVpS18.36
PEG (NY)24.85
PEG (5Y)7.79
Graham Number35.06
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 | 2.54 |
F-Score5
WACC6.76%
ROIC/WACC1.21
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 Y0.52%
EPS Next 2Y8.73%
EPS Next 3Y11.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-4.91%
Revenue Next 2Y-1.32%
Revenue Next 3Y0.38%
Revenue Next 5Y3.23%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year41.54%
EBIT Next 3Y18.8%
EBIT Next 5Y16.72%
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 5 / 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 8 / 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%.