MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
EPA:ML - Euronext Paris - Matif - FR001400AJ45 - Common Stock - Currency: EUR
ML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 27 industry peers in the Automobile Components industry. ML gets an excellent profitability rating and is at the same time showing great financial health properties. ML is not valued too expensively and it also shows a decent growth rate. Finally ML also has an excellent dividend rating. These ratings could make ML a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ML was profitable.
In the past year ML had a positive cash flow from operations.
In the past 5 years ML has always 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 5.04%. This is amongst the best in the industry. ML outperforms 88.89% of its industry peers.
ML has a better Return On Equity (10.12%) than 77.78% of its industry peers.
ML's Return On Invested Capital of 8.73% is amongst the best of the industry. ML outperforms 81.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 6.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROIC | 8.73% |
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
The Profit Margin of ML (6.93%) is better than 88.89% 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 has a Operating Margin of 11.72%. This is amongst the best in the industry. ML outperforms 96.30% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 28.49%, ML is in line with its industry, outperforming 48.15% of the companies in the same industry.
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 | 11.72% | ||
| PM (TTM) | 6.93% | ||
| GM | 28.49% |
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
ML has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for ML is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 2.55, ML belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
The Debt to FCF ratio of ML is 3.42, which is a good value as it means it would take ML, 3.42 years of fcf income to pay off all of its debts.
ML's Debt to FCF ratio of 3.42 is amongst the best of the industry. ML outperforms 92.59% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that ML is not too dependend on debt financing.
ML's Debt to Equity ratio of 0.31 is amongst the best of the industry. ML outperforms 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.3
WACC6.74%
2.3 Liquidity
ML has a Current Ratio of 1.76. 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 (1.76) is better than 88.89% of its industry peers.
A Quick Ratio of 1.11 indicates that ML should not have too much problems paying its short term obligations.
ML has a better Quick ratio (1.11) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.42%.
The Earnings Per Share has been growing slightly by 1.64% on average over the past years.
ML shows a decrease in Revenue. In the last year, the revenue decreased by -4.06%.
ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.41% yearly.
EPS 1Y (TTM)-5.42%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.87%
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 17.51% yearly.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue Next Year0.83%
Revenue Next 2Y2%
Revenue Next 3Y2.43%
Revenue Next 5Y3.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 12.20, the valuation of ML can be described as correct.
ML's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ML to the average of the S&P500 Index (27.18), we can say ML is valued rather cheaply.
A Price/Forward Earnings ratio of 9.01 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 (35.34), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ML is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ML indicates a slightly more expensive valuation: ML is more expensive than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 4.83 |
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.
The decent profitability rating of ML may justify a higher PE ratio.
A more expensive valuation may be justified as ML's earnings are expected to grow with 17.51% in the coming years.
PEG (NY)0.35
PEG (5Y)7.43
EPS Next 2Y23.07%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, ML is a good candidate for dividend investing.
ML's Dividend Yield is a higher than the industry average which is at 5.04.
Compared to an average S&P500 Dividend Yield of 2.34, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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
ML pays out 51.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.01%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPA:ML (7/16/2025, 5:36:15 PM)
31.97
-0.08 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.91%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.56B
Analysts80
Price Target37.91 (18.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP51.01%
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)-0.1%
PT rev (3m)-1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.01 | ||
| P/S | 0.83 | ||
| P/FCF | 10.47 | ||
| P/OCF | 5.2 | ||
| P/B | 1.21 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)2.62
EY8.2%
EPS(NY)3.55
Fwd EY11.09%
FCF(TTM)3.05
FCFY9.55%
OCF(TTM)6.14
OCFY19.22%
SpS38.53
BVpS26.39
TBVpS19.38
PEG (NY)0.35
PEG (5Y)7.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROCE | 11.13% | ||
| ROIC | 8.73% | ||
| ROICexc | 10.35% | ||
| ROICexgc | 13.02% | ||
| OM | 11.72% | ||
| PM (TTM) | 6.93% | ||
| GM | 28.49% | ||
| FCFM | 7.92% |
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)10.37%
ROICexc(5y)9.81%
ROICexgc(3y)12.78%
ROICexgc(5y)12.13%
ROCE(3y)11.87%
ROCE(5y)10.97%
ROICexcg growth 3Y-1.65%
ROICexcg growth 5Y0.27%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y0.21%
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 110.04% | ||
| Cap/Sales | 8.02% | ||
| Interest Coverage | 12.7 | ||
| Cash Conversion | 83.87% | ||
| Profit Quality | 114.33% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.55 |
F-Score5
WACC6.74%
ROIC/WACC1.3
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)-5.42%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-5.56%
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.87%
Revenue Next Year0.83%
Revenue Next 2Y2%
Revenue Next 3Y2.43%
Revenue Next 5Y3.24%
EBIT growth 1Y-7.52%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year66.93%
EBIT Next 3Y23.28%
EBIT Next 5Y17.83%
FCF growth 1Y-29.4%
FCF growth 3Y21.5%
FCF growth 5Y7.22%
OCF growth 1Y-17.99%
OCF growth 3Y14.27%
OCF growth 5Y5.48%