MICHELIN (CGDE) (ML.PA)
FR001400AJ45 - Common Stock
ML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is valued correctly, but it does not seem to be growing. Finally ML also has an excellent dividend rating. This makes ML very considerable 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.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ML has a Return On Assets of 5.28%. This is amongst the best in the industry. ML outperforms 83.33% of its industry peers.
ML has a better Return On Equity (10.77%) than 73.33% of its industry peers.
ML has a Return On Invested Capital of 9.29%. This is in the better half of the industry: ML outperforms 80.00% of its industry peers.
ML had an Average Return On Invested Capital over the past 3 years of 9.16%. This is above the industry average of 7.15%.
The 3 year average ROIC (9.16%) for ML is below the current ROIC(9.29%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 6.93%, ML belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ML has declined.
Looking at the Operating Margin, with a value of 12.44%, ML belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
ML's Operating Margin has been stable in the last couple of years.
ML's Gross Margin of 29.25% is in line compared to the rest of the industry. ML outperforms 50.00% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ML is creating some value.
ML has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ML has less shares outstanding
The debt/assets ratio for ML has been reduced compared to a year ago.
2.2 Solvency
ML has an Altman-Z score of 2.72. 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.
Looking at the Altman-Z score, with a value of 2.72, ML belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
ML has a debt to FCF ratio of 2.88. This is a good value and a sign of high solvency as ML would need 2.88 years to pay back of all of its debts.
ML's Debt to FCF ratio of 2.88 is amongst the best of the industry. ML outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that ML is not too dependend on debt financing.
ML has a Debt to Equity ratio of 0.40. This is in the better half of the industry: ML outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.33
WACC6.99%
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.
The Current ratio of ML (1.82) is better than 83.33% of its industry peers.
ML has a Quick Ratio of 1.11. 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 better Quick ratio (1.11) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for ML have decreased strongly by -19.52% in the last year.
The Earnings Per Share has been growing slightly by 3.63% on average over the past years.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -5.57% in the last year.
Measured over the past years, ML shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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
Based on estimates for the next years, ML will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.62% on average per year.
Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y27.14%
EPS Next 2Y17.5%
EPS Next 3Y14.62%
EPS Next 5YN/A
Revenue Next Year-2.35%
Revenue Next 2Y0.35%
Revenue Next 3Y1.25%
Revenue Next 5Y3.19%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.20, the valuation of ML can be described as correct.
Based on the Price/Earnings ratio, ML is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ML to the average of the S&P500 Index (29.62), we can say ML is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.25, the valuation of ML can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ML indicates a slightly more expensive valuation: ML is more expensive than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (21.22), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ML is valued more expensive than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ML is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 5.35 |
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 14.62% in the coming years.
PEG (NY)0.49
PEG (5Y)3.63
EPS Next 2Y17.5%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.34, ML pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of ML is nicely growing with an annual growth rate of 7.12%!
Dividend Growth(5Y)7.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
ML pays out 50.00% of its income as dividend. 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 2Y17.5%
EPS Next 3Y14.62%
MICHELIN (CGDE)
EPA:ML (9/6/2024, 7:00:00 PM)
35.37
-0.23 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 10.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.44% | ||
| PM (TTM) | 6.93% | ||
| GM | 29.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.52%
EPS 3Y46.69%
EPS 5Y
EPS Q2Q%
EPS Next Y27.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y11.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y