MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe - EPA:ML - FR001400AJ45 - Common Stock
27.69 EUR
-0.42 (-1.49%)
We assign a fundamental rating of 6 out of 10 to ML. ML was compared to 29 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 correct valuation and a medium growth rate. 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.
ML had positive earnings in each of the past 5 years.
ML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ML (4.39%) is better than 90.63% of its industry peers.
ML has a better Return On Equity (8.81%) than 78.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.17%, ML is in the better half of the industry, outperforming 78.13% 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 6.72%.
| 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
The Profit Margin of ML (5.84%) is better than 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.
ML's Operating Margin of 10.65% is amongst the best of the industry. ML outperforms 96.88% of its industry peers.
ML's Operating Margin has been stable in the last couple of years.
ML has a Gross Margin (27.60%) which 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 | 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.
ML has less shares outstanding than it did 1 year ago.
ML has less shares outstanding than it did 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 2.53. 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 (2.53) is better than 84.38% of its industry peers.
The Debt to FCF ratio of ML is 6.05, which is on the high side as it means it would take ML, 6.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ML (6.05) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, ML belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.2
WACC6.79%
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.
ML has a Current ratio of 1.80. This is amongst the best in the industry. ML outperforms 90.63% of its industry peers.
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.
With an excellent Quick ratio value of 1.12, ML belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
| 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%.
ML shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.64% yearly.
Looking at the last year, ML shows a decrease in Revenue. The Revenue has decreased by -3.62% in the last year.
The Revenue has been growing slightly by 2.41% on average over the past years.
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 15.63% yearly.
The Revenue is expected to grow by 2.47% on average over the next years.
EPS Next Y21.13%
EPS Next 2Y18.35%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.2%
Revenue Next 3Y1.31%
Revenue Next 5Y2.47%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.64, which indicates a correct valuation of ML.
Based on the Price/Earnings ratio, ML is valued a bit cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. ML is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.55 indicates a rather cheap valuation of ML.
Based on the Price/Forward Earnings ratio, ML is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ML to the average of the S&P500 Index (22.55), we can say ML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ML.
ML's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ML is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| EV/EBITDA | 4.78 |
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 a very decent profitability rating, which may justify a higher PE ratio.
ML's earnings are expected to grow with 15.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)7.7
EPS Next 2Y18.35%
EPS Next 3Y15.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, ML is a good candidate for dividend investing.
ML's Dividend Yield is rather good when compared to the industry average which is at 4.66. ML pays more dividend than 87.50% of the companies in the same industry.
ML's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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
62.40% of the earnings are spent on dividend by ML. 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 2Y18.35%
EPS Next 3Y15.63%
EPA:ML (10/31/2025, 7:00:00 PM)
27.69
-0.42 (-1.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap19.54B
Revenue(TTM)26.74B
Net Income(TTM)1.56B
Analysts80
Price Target32.33 (16.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP62.4%
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)-14.57%
PT rev (3m)-13.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-10.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.73 | ||
| P/FCF | 15.76 | ||
| P/OCF | 5.78 | ||
| P/B | 1.1 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.78 |
EPS(TTM)2.19
EY7.91%
EPS(NY)3.67
Fwd EY13.25%
FCF(TTM)1.76
FCFY6.35%
OCF(TTM)4.79
OCFY17.31%
SpS37.89
BVpS25.11
TBVpS18.49
PEG (NY)0.6
PEG (5Y)7.7
Graham Number35.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 8.81% | ||
| ROCE | 10.41% | ||
| ROIC | 8.17% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 11.66% | ||
| OM | 10.65% | ||
| PM (TTM) | 5.84% | ||
| GM | 27.6% | ||
| FCFM | 4.64% |
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)10.45%
ROICexc(5y)9.86%
ROICexgc(3y)12.91%
ROICexgc(5y)12.2%
ROCE(3y)11.87%
ROCE(5y)10.97%
ROICexgc growth 3Y-1.17%
ROICexgc growth 5Y0.57%
ROICexc growth 3Y-1.78%
ROICexc growth 5Y0.45%
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 107.96% | ||
| Cap/Sales | 8.01% | ||
| Interest Coverage | 9.96 | ||
| Cash Conversion | 70% | ||
| Profit Quality | 79.44% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.53 |
F-Score5
WACC6.79%
ROIC/WACC1.2
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)-18.28%
EPS 3Y0.78%
EPS 5Y1.64%
EPS Q2Q%-26.88%
EPS Next Y21.13%
EPS Next 2Y18.35%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y4.55%
Revenue growth 5Y2.41%
Sales Q2Q%-3.36%
Revenue Next Year-2%
Revenue Next 2Y0.2%
Revenue Next 3Y1.31%
Revenue Next 5Y2.47%
EBIT growth 1Y-17.5%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year59.12%
EBIT Next 3Y22.78%
EBIT Next 5Y17.41%
FCF growth 1Y-20.46%
FCF growth 3Y21.5%
FCF growth 5Y7.22%
OCF growth 1Y-10.1%
OCF growth 3Y14.27%
OCF growth 5Y5.48%
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 for ML stock?
ChartMill assigns a valuation rating of 6 / 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.
What is the financial health of MICHELIN (CGDE) (ML.PA) stock?
The financial health rating of MICHELIN (CGDE) (ML.PA) is 7 / 10.
Is the dividend of MICHELIN (CGDE) sustainable?
The dividend rating of MICHELIN (CGDE) (ML.PA) is 8 / 10 and the dividend payout ratio is 62.4%.