MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
EPA:ML - Euronext Paris - Matif - FR001400AJ45 - Common Stock - Currency: EUR
Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 29 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 valuation in line with the averages, but it does not seem to be growing. Finally ML also has an excellent dividend rating. These ratings would make ML suitable for dividend investing!
1. Profitability
1.1 Basic Checks
ML had positive earnings in the past year.
ML had a positive operating cash flow in the past year.
ML had positive earnings in each of the past 5 years.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ML has a better Return On Assets (5.28%) than 93.55% of its industry peers.
The Return On Equity of ML (10.77%) is better than 77.42% of its industry peers.
With an excellent Return On Invested Capital value of 9.29%, ML belongs to the best of the industry, outperforming 90.32% 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 6.14%.
The last Return On Invested Capital (9.29%) for ML is above the 3 year average (9.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 10.77% | ||
| ROIC | 9.29% |
ROA(3y)5.54%
ROA(5y)4.82%
ROE(3y)11.67%
ROE(5y)10.63%
ROIC(3y)9.16%
ROIC(5y)8.51%
1.3 Margins
ML has a Profit Margin of 6.93%. This is amongst the best in the industry. ML outperforms 93.55% of its industry peers.
ML's Profit Margin has declined in the last couple of years.
ML has a better Operating Margin (12.44%) than 96.77% 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 (29.25%) 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 | 12.44% | ||
| PM (TTM) | 6.93% | ||
| GM | 29.25% |
OM growth 3Y10.53%
OM growth 5Y-0.4%
PM growth 3Y31.62%
PM growth 5Y-1.53%
GM growth 3Y0.15%
GM growth 5Y-1.05%
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.
ML has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ML has been reduced compared to 5 years ago.
ML has a better debt/assets ratio than last year.
2.2 Solvency
ML has an Altman-Z score of 2.69. 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 2.69, ML belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
The Debt to FCF ratio of ML is 2.88, which is a good value as it means it would take ML, 2.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.88, ML belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
ML has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, ML is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.31
WACC7.11%
2.3 Liquidity
ML has a Current Ratio of 1.82. 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 Current ratio, with a value of 1.82, ML belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that ML should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.11, ML is doing good in the industry, outperforming 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.52%.
The Earnings Per Share has been growing slightly by 3.63% on average over the past years.
The Revenue has decreased by -5.57% in the past year.
ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-19.52%
EPS 3Y46.69%
EPS 5Y3.63%
EPS Q2Q%-5.33%
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Sales Q2Q%-4.25%
3.2 Future
The Earnings Per Share is expected to grow by 11.57% on average over the next years. This is quite good.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y18.07%
EPS Next 2Y13.1%
EPS Next 3Y12.8%
EPS Next 5Y11.57%
Revenue Next Year-4.7%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.62%
Revenue Next 5Y2.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.57, the valuation of ML can be described as correct.
ML's Price/Earnings is on the same level as the industry average.
ML's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
ML is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ML is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (22.10), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ML is valued a bit more expensive than the industry average as 64.52% of the companies are valued more cheaply.
ML's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
ML's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ML has an outstanding profitability rating, which may justify a higher PE ratio.
ML's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)3.46
EPS Next 2Y13.1%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, ML has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.30, ML pays a bit more dividend than its industry peers.
ML's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
On average, the dividend of ML grows each year by 7.12%, which is quite nice.
Dividend Growth(5Y)7.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
50.00% of the earnings are spent on dividend by ML. This is a bit on the high side, but may be sustainable.
ML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50%
EPS Next 2Y13.1%
EPS Next 3Y12.8%
EPA:ML (3/6/2025, 9:12:06 AM)
33.69
-0.82 (-2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.74%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap23.78B
Analysts77.69
Price Target38.46 (14.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend1.25
Dividend Growth(5Y)7.12%
DP50%
Div Incr Years4
Div Non Decr Years4
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)2.23%
PT rev (3m)3.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.39%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.51 | ||
| P/S | 0.86 | ||
| P/FCF | 8.14 | ||
| P/OCF | 4.58 | ||
| P/B | 1.33 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)2.68
EY7.95%
EPS(NY)3.54
Fwd EY10.52%
FCF(TTM)4.14
FCFY12.29%
OCF(TTM)7.36
OCFY21.83%
SpS39.31
BVpS25.29
TBVpS18.5
PEG (NY)0.7
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 10.77% | ||
| ROCE | 12.25% | ||
| ROIC | 9.29% | ||
| ROICexc | 10.6% | ||
| ROICexgc | 13.08% | ||
| OM | 12.44% | ||
| PM (TTM) | 6.93% | ||
| GM | 29.25% | ||
| FCFM | 10.53% |
ROA(3y)5.54%
ROA(5y)4.82%
ROE(3y)11.67%
ROE(5y)10.63%
ROIC(3y)9.16%
ROIC(5y)8.51%
ROICexc(3y)10.41%
ROICexc(5y)9.64%
ROICexgc(3y)12.74%
ROICexgc(5y)11.9%
ROCE(3y)12.06%
ROCE(5y)11.19%
ROICexcg growth 3Y13.26%
ROICexcg growth 5Y0.37%
ROICexc growth 3Y14.02%
ROICexc growth 5Y0.87%
OM growth 3Y10.53%
OM growth 5Y-0.4%
PM growth 3Y31.62%
PM growth 5Y-1.53%
GM growth 3Y0.15%
GM growth 5Y-1.05%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.88 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 116.24% | ||
| Cap/Sales | 8.18% | ||
| Interest Coverage | 10.15 | ||
| Cash Conversion | 96.06% | ||
| Profit Quality | 152.03% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.69 |
F-Score6
WACC7.11%
ROIC/WACC1.31
Cap/Depr(3y)109.9%
Cap/Depr(5y)100.41%
Cap/Sales(3y)7.51%
Cap/Sales(5y)7.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.52%
EPS 3Y46.69%
EPS 5Y3.63%
EPS Q2Q%-5.33%
EPS Next Y18.07%
EPS Next 2Y13.1%
EPS Next 3Y12.8%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Sales Q2Q%-4.25%
Revenue Next Year-4.7%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.62%
Revenue Next 5Y2.41%
EBIT growth 1Y2.68%
EBIT growth 3Y23.2%
EBIT growth 5Y4.75%
EBIT Next Year61.62%
EBIT Next 3Y21.75%
EBIT Next 5Y16.53%
FCF growth 1Y7589.47%
FCF growth 3Y12.46%
FCF growth 5Y21.28%
OCF growth 1Y171.92%
OCF growth 3Y16.24%
OCF growth 5Y13.31%