MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ML - FR001400AJ45 - Common Stock
31 EUR
+0.17 (+0.55%)
Taking everything into account, ML scores 6 out of 10 in our fundamental rating. ML was compared to 31 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 has a correct valuation and a medium growth rate. Finally ML also has an excellent dividend rating. This makes ML very considerable 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.
- In the past 5 years ML has always been profitable.
- In the past 5 years ML always reported a positive cash flow from operatings.
1.2 Ratios
- ML has a Return On Assets of 4.39%. This is amongst the best in the industry. ML outperforms 93.55% of its industry peers.
- The Return On Equity of ML (8.81%) is better than 83.87% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.17%, ML belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- ML had an Average Return On Invested Capital over the past 3 years of 9.25%. This is above the industry average of 6.49%.
| 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 better Profit Margin (5.84%) than 96.77% 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 10.65%. This is amongst the best in the industry. ML outperforms 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 (27.60%) 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 | 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
- 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 less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ML has been reduced compared to 5 years ago.
- Compared to 1 year ago, ML has a worse debt to assets ratio.
2.2 Solvency
- ML has an Altman-Z score of 2.61. 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 2.61, ML belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 6.17, ML is doing good in the industry, outperforming 77.42% of the companies in the same industry.
- ML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- ML has a better Debt to Equity ratio (0.32) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.18
WACC6.94%
2.3 Liquidity
- A Current Ratio of 1.80 indicates that ML should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.80, ML belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that ML should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.12, ML belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
| 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.
- Measured over the past years, ML shows a small growth in Revenue. The Revenue has been growing by 2.41% on average per year.
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
- The Earnings Per Share is expected to grow by 10.10% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y-1.08%
EPS Next 2Y7.31%
EPS Next 3Y10.1%
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
- With a Price/Earnings ratio of 14.16, ML is valued correctly.
- ML's Price/Earnings ratio is a bit cheaper when compared to the industry. ML is cheaper than 61.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, ML is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.28, the valuation of ML can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ML is valued a bit cheaper than 64.52% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 10.28 |
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.
- ML's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 5.27 |
4.3 Compensation for Growth
- ML has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.62
EPS Next 2Y7.31%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, ML is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.91, ML pays a better dividend. On top of this ML pays more dividend than 80.65% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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 2Y7.31%
EPS Next 3Y10.1%
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 5 / 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%.