MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ML - FR001400AJ45 - Common Stock
28.31 EUR
+0.02 (+0.07%)
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 28 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 correct valuation and a medium growth rate. 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.
ML had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 4.39%, ML belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Equity of ML (8.81%) is better than 82.14% of its industry peers.
With a decent Return On Invested Capital value of 8.17%, ML is doing good in the industry, outperforming 78.57% 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 6.67%.
| 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's Profit Margin of 5.84% is amongst the best of the industry. ML outperforms 96.43% 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's Operating Margin of 10.65% is amongst the best of the industry. ML outperforms 96.43% 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 in line with its industry peers.
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.
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.
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.
The Altman-Z score of ML (2.55) is better than 85.71% of its industry peers.
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.
The Debt to FCF ratio of ML (6.05) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, ML belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.21
WACC6.77%
2.3 Liquidity
A Current Ratio of 1.80 indicates that ML should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.80, ML belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
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 has a Quick ratio of 1.12. This is amongst the best in the industry. ML outperforms 85.71% 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.
The Earnings Per Share has been growing slightly by 1.64% on average over the past years.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -3.62% in the last year.
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
Based on estimates for the next years, ML will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.25% on average per year.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y-1.23%
EPS Next 2Y7.26%
EPS Next 3Y10.25%
EPS Next 5YN/A
Revenue Next Year-5.06%
Revenue Next 2Y-1.48%
Revenue Next 3Y0.27%
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
ML is valuated correctly with a Price/Earnings ratio of 12.93.
ML's Price/Earnings ratio is a bit cheaper when compared to the industry. ML is cheaper than 60.71% of the companies in the same industry.
ML's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 9.39 indicates a reasonable valuation of ML.
ML's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (23.13), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ML is on the same level as its industry peers.
64.29% of the companies in the same industry are cheaper than ML, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.22 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
The decent profitability rating of ML may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.87
EPS Next 2Y7.26%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.94%, ML is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.06, ML pays a better dividend. On top of this ML pays more dividend than 89.29% of the companies listed in the same industry.
ML's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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 2Y7.26%
EPS Next 3Y10.25%
EPA:ML (12/31/2025, 7:00:00 PM)
28.31
+0.02 (+0.07%)
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 Cap20.11B
Revenue(TTM)26.74B
Net Income(TTM)1.56B
Analysts78.33
Price Target32.19 (13.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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)-0.33%
PT rev (3m)-14.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.96%
EPS NY rev (3m)-18.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.75 | ||
| P/FCF | 16.22 | ||
| P/OCF | 5.95 | ||
| P/B | 1.13 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)2.19
EY7.74%
EPS(NY)3.01
Fwd EY10.65%
FCF(TTM)1.75
FCFY6.16%
OCF(TTM)4.76
OCFY16.82%
SpS37.63
BVpS24.94
TBVpS18.36
PEG (NY)N/A
PEG (5Y)7.87
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
WACC6.77%
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 Y-1.23%
EPS Next 2Y7.26%
EPS Next 3Y10.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-5.06%
Revenue Next 2Y-1.48%
Revenue Next 3Y0.27%
Revenue Next 5Y3.23%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year41.45%
EBIT Next 3Y18.75%
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 of MICHELIN (CGDE) (ML.PA) 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.
How financially healthy is MICHELIN (CGDE)?
The financial health rating of MICHELIN (CGDE) (ML.PA) is 7 / 10.
How sustainable is the dividend of MICHELIN (CGDE) (ML.PA) stock?
The dividend rating of MICHELIN (CGDE) (ML.PA) is 8 / 10 and the dividend payout ratio is 62.4%.