MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - EPA:ML - FR001400AJ45 - Common Stock
31.13 EUR
+0.12 (+0.39%)
ML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. While ML has a great profitability rating, there are some minor concerns on its financial health. ML has a decent growth rate and is not valued too expensively. ML also has an excellent dividend rating. With these ratings, ML could be worth investigating further 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.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ML's Return On Assets of 4.39% is amongst the best of the industry. ML outperforms 89.66% of its industry peers.
ML has a better Return On Equity (8.81%) than 79.31% of its industry peers.
With a decent Return On Invested Capital value of 8.17%, ML is doing good in the industry, outperforming 79.31% 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 6.57%.
| 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 96.55% 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 96.55% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
ML has a Gross Margin (27.60%) which is in line with 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
ML has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ML has been reduced compared to 1 year ago.
The number of shares outstanding for ML has been reduced compared to 5 years ago.
Compared to 1 year ago, ML has a worse debt to assets ratio.
2.2 Solvency
ML has an Altman-Z score of 2.61. 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.
The Altman-Z score of ML (2.61) is better than 82.76% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.05, ML is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
ML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ML's Debt to Equity ratio of 0.32 is amongst the best of the industry. ML outperforms 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.22
WACC6.7%
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 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.
Looking at the Quick ratio, with a value of 1.12, ML is in the better half of the industry, outperforming 79.31% 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.
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
ML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
The Revenue is expected to grow by 2.56% on average over the next years.
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
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
The Price/Earnings ratio is 14.21, which indicates a correct valuation of ML.
ML's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.38. ML is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.33 indicates a reasonable valuation of ML.
The rest of the industry has a similar Price/Forward Earnings ratio as ML.
When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (22.86), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 8.33 |
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.
Based on the Price/Free Cash Flow ratio, ML is valued a bit more expensive than the industry average as 65.52% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 5.27 |
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)0.62
PEG (5Y)8.65
EPS Next 2Y19.47%
EPS Next 3Y16.31%
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.
Compared to an average S&P500 Dividend Yield of 2.38, ML pays a better dividend.
| Industry Rank | Sector 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
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 2Y19.47%
EPS Next 3Y16.31%
EPA:ML (9/19/2025, 7:00:00 PM)
31.13
+0.12 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.91%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap21.97B
Analysts80.87
Price Target37.84 (21.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.82 | ||
| P/FCF | 17.72 | ||
| P/OCF | 6.49 | ||
| P/B | 1.24 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)2.19
EY7.04%
EPS(NY)3.74
Fwd EY12.01%
FCF(TTM)1.76
FCFY5.64%
OCF(TTM)4.79
OCFY15.4%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.62
PEG (5Y)8.65
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)10.37%
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 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 | 2.61 |
F-Score5
WACC6.7%
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%