MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ML - FR001400AJ45 - Common Stock
28.22 EUR
+0.17 (+0.61%)
Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 30 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making ML a very profitable company, without any liquidiy or solvency issues. 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.
ML had a positive operating cash flow in the past year.
Each year in the past 5 years ML has been profitable.
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 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 8.81%, ML belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.17%, ML is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ML is above the industry average of 6.73%.
| 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
Looking at the Profit Margin, with a value of 5.84%, ML belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
In the last couple of years the Profit Margin of ML has remained more or less at the same level.
The Operating Margin of ML (10.65%) 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 of 27.60%. This is comparable to the rest of the industry: ML outperforms 53.33% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ML is creating some value.
The number of shares outstanding for ML has been reduced compared to 1 year ago.
ML has less shares outstanding than it did 5 years ago.
ML has a worse debt/assets ratio than last year.
2.2 Solvency
ML has an Altman-Z score of 2.55. 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.
ML has a Altman-Z score of 2.55. This is amongst the best in the industry. ML outperforms 83.33% 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.
ML has a Debt to FCF ratio of 6.05. This is in the better half 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.
The Debt to Equity ratio of ML (0.32) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.21
WACC6.76%
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's Current ratio of 1.80 is amongst the best of the industry. ML outperforms 93.33% 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's Quick ratio of 1.12 is amongst the best of the industry. ML outperforms 86.67% of its industry peers.
| 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.
Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 1.64% on average per year.
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
The Earnings Per Share is expected to grow by 11.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.23% on average over the next years.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.89, ML is valued correctly.
ML's Price/Earnings ratio is a bit cheaper when compared to the industry. ML is cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, ML is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.11, the valuation of ML can be described as reasonable.
ML's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ML is cheaper than 63.33% of the companies in the same industry.
ML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ML.
The rest of the industry has a similar Price/Free Cash Flow ratio as ML.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| 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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)25.02
PEG (5Y)7.84
EPS Next 2Y8.73%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.95%, which is a nice return.
Compared to an average industry Dividend Yield of 3.13, 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 1.87, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
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
ML pays out 62.40% of its income as dividend. 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 2Y8.73%
EPS Next 3Y11.17%
EPA:ML (12/15/2025, 5:36:15 PM)
28.22
+0.17 (+0.61%)
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 Cap20.05B
Revenue(TTM)26.74B
Net Income(TTM)1.56B
Analysts78.33
Price Target32.34 (14.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
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)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.11 | ||
| P/S | 0.75 | ||
| P/FCF | 16.17 | ||
| P/OCF | 5.93 | ||
| P/B | 1.13 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)2.19
EY7.76%
EPS(NY)3.1
Fwd EY10.98%
FCF(TTM)1.75
FCFY6.18%
OCF(TTM)4.76
OCFY16.87%
SpS37.63
BVpS24.94
TBVpS18.36
PEG (NY)25.02
PEG (5Y)7.84
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 | 2.55 |
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 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%.