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 31 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 decent growth rate and is not valued too expensively. Finally 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.
- In the past year ML had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 4.39%, ML belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
- With an excellent Return On Equity value of 8.81%, ML belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
- ML has a Return On Invested Capital of 8.17%. This is amongst the best in the industry. ML outperforms 80.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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.
- The Operating Margin of ML (10.65%) is better than 96.77% of its industry peers.
- ML's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 27.60%, ML perfoms like the industry average, outperforming 54.84% of the companies in the same 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
- 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 has been reduced compared to 1 year ago.
- ML has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ML has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.62 indicates that ML is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.62, ML belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- The Debt to FCF ratio of ML is 6.17, which is on the high side as it means it would take ML, 6.17 years of fcf income to pay off 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.
- 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 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.17
WACC6.96%
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.
- With an excellent Current ratio value of 1.80, ML belongs to the best 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.
- ML's Quick ratio of 1.12 is amongst the best of the industry. ML outperforms 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%.
- 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.
- ML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.41% yearly.
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.
- Based on estimates for the next years, ML will show a small growth in Revenue. The Revenue will grow by 3.12% on average per year.
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.
- 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
- The Price/Earnings ratio is 14.32, which indicates a correct valuation of ML.
- 61.29% of the companies in the same industry are more expensive than ML, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, ML is valued a bit cheaper.
- A Price/Forward Earnings ratio of 10.39 indicates a reasonable valuation of ML.
- ML's Price/Forward Earnings is on the same level as the industry average.
- ML is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| 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.
- ML's Price/Free Cash Flow ratio is in line with the industry average.
| 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 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.
- Compared to an average S&P500 Dividend Yield of 1.82, ML pays a better dividend.
| 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 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%.