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 29 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 decent growth rate and is not valued too expensively. Finally ML also has an excellent dividend rating. These ratings would make ML suitable 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 (5.04%) is better than 86.21% of its industry peers.
ML has a better Return On Equity (10.12%) than 72.41% of its industry peers.
ML has a Return On Invested Capital of 8.53%. This is amongst the best in the industry. ML outperforms 82.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 6.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROIC | 8.53% |
ROA(3y)5.45%
ROA(5y)4.73%
ROE(3y)10.95%
ROE(5y)10.02%
ROIC(3y)9.12%
ROIC(5y)8.42%
1.3 Margins
Looking at the Profit Margin, with a value of 6.93%, ML belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
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 96.55% of its industry peers.
In the last couple of years the Operating Margin of ML has remained more or less at the same level.
ML has a Gross Margin (28.49%) which is in line with its industry peers.
ML's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ML is creating some value.
Compared to 1 year ago, ML has less shares outstanding
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 86.21% of its industry peers.
The Debt to FCF ratio of ML is 3.74, which is a good value as it means it would take ML, 3.74 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.74, ML belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
ML has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ML (0.35) is better than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.27
WACC6.7%
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.
With an excellent Current ratio value of 1.76, ML belongs to the best of the industry, outperforming 89.66% 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 Quick ratio of 1.11. This is in the better half of the industry: ML outperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for ML have decreased by -5.42% in the last year.
ML shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.64% yearly.
The Revenue has decreased by -4.06% in the past year.
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
The Earnings Per Share is expected to grow by 17.51% on average over the next years. This is quite good.
ML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
EPS Next Y35.36%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue Next Year3.42%
Revenue Next 2Y3.38%
Revenue Next 3Y3.54%
Revenue Next 5Y3.22%
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 11.97, the valuation of ML can be described as reasonable.
ML's Price/Earnings ratio is in line with the industry average.
ML's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
With a Price/Forward Earnings ratio of 8.84, the valuation of ML can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ML.
The average S&P500 Price/Forward Earnings ratio is at 21.65. ML is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ML is valued a bit more expensive than 65.52% of the companies in the same industry.
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 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 4.66 |
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 17.51% in the coming years.
PEG (NY)0.34
PEG (5Y)7.29
EPS Next 2Y23.07%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, ML is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, ML pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, ML pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
51.01% of the earnings are spent on dividend by ML. 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.
DP51.01%
EPS Next 2Y23.07%
EPS Next 3Y17.51%
EPA:ML (4/25/2025, 4:45:00 PM)
31.36
+0.51 (+1.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners39.74%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap22.13B
Analysts78.4
Price Target38.37 (22.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend1.35
Dividend Growth(5Y)7.84%
DP51.01%
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)-0.23%
PT rev (3m)3.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.1%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 8.84 | ||
| P/S | 0.81 | ||
| P/FCF | 10.27 | ||
| P/OCF | 5.1 | ||
| P/B | 1.19 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)2.62
EY8.35%
EPS(NY)3.55
Fwd EY11.31%
FCF(TTM)3.05
FCFY9.73%
OCF(TTM)6.14
OCFY19.59%
SpS38.53
BVpS26.39
TBVpS19.38
PEG (NY)0.34
PEG (5Y)7.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 10.12% | ||
| ROCE | 11.13% | ||
| ROIC | 8.53% | ||
| ROICexc | 10.06% | ||
| ROICexgc | 12.57% | ||
| 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)9.12%
ROIC(5y)8.42%
ROICexc(3y)10.2%
ROICexc(5y)9.71%
ROICexgc(3y)12.52%
ROICexgc(5y)11.97%
ROCE(3y)11.87%
ROCE(5y)10.97%
ROICexcg growth 3Y-2.77%
ROICexcg growth 5Y-0.41%
ROICexc growth 3Y-3.05%
ROICexc growth 5Y-0.34%
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 | 0.35 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 1.25 | ||
| 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 | 2.53 |
F-Score5
WACC6.7%
ROIC/WACC1.27
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 Year3.42%
Revenue Next 2Y3.38%
Revenue Next 3Y3.54%
Revenue Next 5Y3.22%
EBIT growth 1Y-7.52%
EBIT growth 3Y1.98%
EBIT growth 5Y1.14%
EBIT Next Year70.46%
EBIT Next 3Y24.51%
EBIT Next 5Y17.57%
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%