MICHELIN (CGDE) (ML.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:ML • FR001400AJ45
31.35 EUR
+0.01 (+0.03%)
Last: Jan 30, 2026, 07:00 PM
ML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate. 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.
- 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
- 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.
- Looking at the Return On Equity, with a value of 8.81%, ML belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- ML has a better Return On Invested Capital (8.17%) than 80.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ML is above the industry average of 6.49%.
| 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.
- ML's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 10.65%, ML belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- In the last couple of years the Operating Margin of ML has remained more or less at the same level.
- ML's Gross Margin of 27.60% is in line compared to the rest of the industry. ML outperforms 54.84% of its industry peers.
- 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.
- ML has a worse debt/assets ratio than last year.
2.2 Solvency
- ML has an Altman-Z score of 2.62. 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.
- ML has a better Altman-Z score (2.62) than 83.87% of its industry peers.
- 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.
- ML has a Debt to FCF ratio of 6.17. This is in the better half of the industry: ML outperforms 77.42% of its industry peers.
- 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 | 2.62 |
ROIC/WACC1.17
WACC6.96%
2.3 Liquidity
- A Current Ratio of 1.80 indicates that ML should not have too much problems paying its short term obligations.
- ML has a Current ratio of 1.80. This is amongst the best in the industry. ML outperforms 93.55% of its industry peers.
- A Quick Ratio of 1.12 indicates that ML should not have too much problems paying its short term obligations.
- The Quick ratio of ML (1.12) is better than 83.87% of its industry peers.
| 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%.
- Measured over the past 5 years, ML shows a small growth in Earnings Per Share. The EPS has been growing by 1.64% on average per year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.32, the valuation of ML can be described as correct.
- 61.29% of the companies in the same industry are more expensive than ML, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ML to the average of the S&P500 Index (28.32), we can say ML is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 10.39, the valuation of ML can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ML is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. ML is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 10.39 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ML is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
- The excellent profitability rating of ML may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.71
EPS Next 2Y7.31%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- ML has a Yearly Dividend Yield of 4.40%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.01, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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 62.40% of its income as dividend. This is not a sustainable payout ratio.
- ML's earnings are growing more than its dividend. This makes the dividend growth 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 8 / 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%.