MICHELIN (CGDE) (ML.PA)
FR001400AJ45 - Common Stock
Overall ML gets a fundamental rating of 6 out of 10. We evaluated ML against 29 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 has a valuation in line with the averages, but it does not seem to be growing. Finally 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
In the past year ML was profitable.
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 (5.28%) is better than 89.66% of its industry peers.
With a decent Return On Equity value of 10.77%, ML is doing good in the industry, outperforming 75.86% of the companies in the same industry.
ML has a Return On Invested Capital of 9.29%. This is amongst the best in the industry. ML outperforms 82.76% 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 7.05%.
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
The Profit Margin of ML (6.93%) is better than 93.10% of its industry peers.
In the last couple of years the Profit Margin of ML has declined.
ML has a Operating Margin of 12.44%. This is amongst the best in the industry. ML outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of ML has remained more or less at the same level.
The Gross Margin of ML (29.25%) is comparable to the rest of the industry.
ML's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ML remains at a similar level compared to 1 year ago.
ML has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ML has been reduced compared to a year ago.
2.2 Solvency
ML has an Altman-Z score of 2.63. 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.
The Altman-Z score of ML (2.63) is better than 86.21% of its industry peers.
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 96.55% of its industry peers.
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 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.36
WACC6.81%
2.3 Liquidity
A Current Ratio of 1.82 indicates that ML should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, ML belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
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 65.52% of its industry peers.
| 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.
ML shows a decrease in Revenue. In the last year, the revenue decreased by -5.57%.
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
The Earnings Per Share is expected to grow by 13.48% 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 2.71% on average per year.
EPS Next Y20.85%
EPS Next 2Y13.98%
EPS Next 3Y13.48%
EPS Next 5YN/A
Revenue Next Year-4.43%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.52%
Revenue Next 5Y2.71%
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
The Price/Earnings ratio is 11.92, which indicates a very decent valuation of ML.
The rest of the industry has a similar Price/Earnings ratio as ML.
ML is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.88 indicates a reasonable valuation of ML.
Based on the Price/Forward Earnings ratio, ML is valued a bit more expensive than 62.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. ML is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ML indicates a slightly more expensive valuation: ML is more expensive than 65.52% of the companies listed in the same industry.
ML's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 4.84 |
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.
A more expensive valuation may be justified as ML's earnings are expected to grow with 13.48% in the coming years.
PEG (NY)0.57
PEG (5Y)3.28
EPS Next 2Y13.98%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
ML has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 5.49, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
The dividend of ML is nicely growing with an annual growth rate of 7.12%!
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.
The dividend of ML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50%
EPS Next 2Y13.98%
EPS Next 3Y13.48%
MICHELIN (CGDE)
EPA:ML (12/20/2024, 7:00:00 PM)
31.95
+0.07 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners40.02%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.55B
Analysts75.71
Price Target37.26 (16.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)-4.46%
PT rev (3m)-4.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.81 | ||
| P/FCF | 7.72 | ||
| P/OCF | 4.34 | ||
| P/B | 1.26 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 4.84 |
EPS(TTM)2.68
EY8.39%
EPS(NY)3.6
Fwd EY11.26%
FCF(TTM)4.14
FCFY12.96%
OCF(TTM)7.36
OCFY23.02%
SpS39.31
BVpS25.29
TBVpS18.5
PEG (NY)0.57
PEG (5Y)3.28
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 | 2.63 |
F-Score6
WACC6.81%
ROIC/WACC1.36
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 Y20.85%
EPS Next 2Y13.98%
EPS Next 3Y13.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.57%
Revenue growth 3Y11.46%
Revenue growth 5Y5.17%
Sales Q2Q%-4.25%
Revenue Next Year-4.43%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.52%
Revenue Next 5Y2.71%
EBIT growth 1Y2.68%
EBIT growth 3Y23.2%
EBIT growth 5Y4.75%
EBIT Next Year61.62%
EBIT Next 3Y21.75%
EBIT Next 5Y16.88%
FCF growth 1Y7589.47%
FCF growth 3Y12.46%
FCF growth 5Y21.28%
OCF growth 1Y171.92%
OCF growth 3Y16.24%
OCF growth 5Y13.31%