MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ML - FR001400AJ45 - Common Stock
31.12 EUR
-0.24 (-0.77%)
Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 32 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 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
- ML had positive earnings in the past year.
- ML had a positive operating cash flow in the past year.
- Each year in the past 5 years ML has been profitable.
- Each year in the past 5 years ML had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ML (4.39%) is better than 93.75% of its industry peers.
- ML has a better Return On Equity (8.81%) than 84.38% of its industry peers.
- ML has a better Return On Invested Capital (8.17%) than 81.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ML is above the industry average of 6.33%.
| 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 Profit Margin of 5.84%. This is amongst the best in the industry. ML outperforms 96.88% of its industry peers.
- In the last couple of years the Profit Margin of ML has remained more or less at the same level.
- With an excellent Operating Margin value of 10.65%, ML belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
- 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.
- 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
- 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.
- Compared to 5 years ago, ML has less shares outstanding
- ML has a worse debt/assets ratio than last year.
2.2 Solvency
- ML has an Altman-Z score of 2.62. 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 better Altman-Z score (2.62) than 84.38% of its industry peers.
- ML has a debt to FCF ratio of 6.17. This is a slightly negative value and a sign of low solvency as ML would need 6.17 years to pay back of all of its debts.
- ML has a better Debt to FCF ratio (6.17) than 75.00% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that ML is not too dependend on debt financing.
- ML's Debt to Equity ratio of 0.32 is amongst the best of the industry. ML outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.18
WACC6.95%
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.
- With an excellent Current ratio value of 1.80, ML belongs to the best of the industry, outperforming 93.75% 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's Quick ratio of 1.12 is amongst the best of the industry. ML outperforms 84.38% of its industry peers.
| 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%.
- The Earnings Per Share has been growing slightly by 1.64% on average over the past years.
- The Revenue has decreased by -3.62% in the past year.
- ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.41% yearly.
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 10.25% yearly.
- ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% 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 5Y3.12%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.21, the valuation of ML can be described as correct.
- The rest of the industry has a similar Price/Earnings ratio as ML.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ML is valued a bit cheaper.
- A Price/Forward Earnings ratio of 10.32 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 (24.26), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 10.32 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
- ML has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.65
EPS Next 2Y7.26%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
- ML has a Yearly Dividend Yield of 4.55%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.94, ML pays a better dividend. On top of this ML pays more dividend than 84.38% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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 2Y7.26%
EPS Next 3Y10.25%
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 8 / 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%.