ENXTPA:ML

Stock Analysis Report

Compagnie Générale des Établissements Michelin

Executive Summary

Compagnie Générale des Établissements Michelin manufactures, distributes, and sells tires worldwide.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Compagnie Générale des Établissements Michelin's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.9%

ML

5.3%

FR Auto Components

2.1%

FR Market


1 Year Return

3.8%

ML

-1.1%

FR Auto Components

10.2%

FR Market

Return vs Industry: ML exceeded the French Auto Components industry which returned -1.1% over the past year.

Return vs Market: ML underperformed the French Market which returned 10.2% over the past year.


Shareholder returns

MLIndustryMarket
7 Day8.9%5.3%2.1%
30 Day0.4%-3.5%-0.7%
90 Day-0.9%2.8%-0.7%
1 Year7.4%3.8%2.6%-1.1%14.1%10.2%
3 Year19.3%8.7%-0.9%-8.9%44.6%30.6%
5 Year72.6%48.6%62.9%43.3%76.5%50.1%

Price Volatility Vs. Market

How volatile is Compagnie Générale des Établissements Michelin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Compagnie Générale des Établissements Michelin undervalued compared to its fair value and its price relative to the market?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ML (€104.75) is trading below our estimate of fair value (€117.95)

Significantly Undervalued: ML is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ML is poor value based on its PE Ratio (11.7x) compared to the Auto Components industry average (8.4x).

PE vs Market: ML is good value based on its PE Ratio (11.7x) compared to the French market (17.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: ML is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ML is overvalued based on its PB Ratio (1.5x) compared to the FR Auto Components industry average (1.5x).


Next Steps

Future Growth

How is Compagnie Générale des Établissements Michelin forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ML's forecast earnings growth (8.8% per year) is above the savings rate (0.7%).

Earnings vs Market: ML's earnings (8.8% per year) are forecast to grow slower than the French market (11.5% per year).

High Growth Earnings: ML's earnings are forecast to grow, but not significantly.

Revenue vs Market: ML's revenue (2.4% per year) is forecast to grow slower than the French market (4.4% per year).

High Growth Revenue: ML's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ML's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Compagnie Générale des Établissements Michelin performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ML's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: ML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ML had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Auto Components industry average (-8.3%).


Return on Equity

High ROE: ML's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: ML has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: ML's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Compagnie Générale des Établissements Michelin's financial position?


Financial Position Analysis

Short Term Liabilities: ML's short term assets (€12.1B) exceeds its short term liabilities (€8.3B)

Long Term Liabilities: ML's short term assets (12.1B) exceeds its long term liabilities (11.6B)


Debt to Equity History and Analysis

Debt Level: ML's debt to equity ratio (59.6%) is considered high

Reducing Debt: ML's debt to equity ratio has increased from 23.1% to 59.6% over the past 5 years.

Debt Coverage: ML's debt is well covered by operating cash flow (38.2%).

Interest Coverage: ML's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: ML has a high level of physical assets or inventory.

Debt Coverage by Assets: ML's debt is covered by short term assets (assets are 1.648890x debt).


Next Steps

Dividend

What is Compagnie Générale des Établissements Michelin's current dividend yield, its reliability and sustainability?

3.53%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.6%markettop25%4.7%industryaverage3.5%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ML's dividend (3.53%) is higher than the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: ML's dividend (3.53%) is low compared to the top 25% of dividend payers in the French market (4.67%).

Stable Dividend: ML's dividends per share have been stable in the past 10 years.

Growing Dividend: ML's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), ML's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ML's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

What is the CEO of Compagnie Générale des Établissements Michelin's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Florent Menegaux (57yo)

0.4yrs

Tenure

€1,228,543

Compensation

Mr. Florent Menegaux serves as a Chief Executive Officer at Compagnie Générale des Établissements Michelin since May 15, 2019. He served as a General Managing Partner of Compagnie Générale des Établissemen ...


CEO Compensation Analysis

Compensation vs. Market: Florent has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the French market.

Compensation vs Earnings: Insufficient data to compare Florent's compensation with company performance.


Management Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

Experienced Management: ML's management team is considered experienced (2 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: ML's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jean-Christophe Guérin

    Executive Vice President of Manufacturing

    • Tenure: 8.3yrs
  • Florent Menegaux (57yo)

    Chief Executive Officer

    • Tenure: 0.4yrs
    • Compensation: €1.23m
  • Adeline Challon-Kemoun (52yo)

    Executive Vice President of Brands

    • Tenure: 1.5yrs
  • Yves Chapot (57yo)

    Former Managing Partner

    • Tenure: 0.3yrs
    • Compensation: €640.92k
  • Serge Lafon

    EVP of Specialties Segment

    • Tenure: 8.1yrs
  • Sonia Artinian-Fredou (53yo)

    Executive Vice-President of Services & Solutions

    • Tenure: 2.6yrs
  • Kamran Vossugi

    Head of East-European Geographical Area and General Director of Production for Tires

    • Tenure: 2.9yrs
  • Valérie Magloire (60yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Jean-Claude Pats

    Executive Vice President of Personnel

    • Tenure: 0.6yrs
  • Benoit Balmary

    Group General Counsel

    • Tenure: 0yrs

Board Members

  • Barbara Dalibard (61yo)

    Lead Independent Member of the Supervisory Board

    • Tenure: 11.4yrs
    • Compensation: €65.00k
  • Jean-Pierre Duprieu (67yo)

    Independent Member of Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: €52.00k
  • Olivier Bazil (73yo)

    Independent Member of Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €65.00k
  • Monique Leroux (65yo)

    Independent Member of Supervisory Board

    • Tenure: 4yrs
    • Compensation: €60.00k
  • Michel Rollier (75yo)

    Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €90.00k
  • Thierry Le Hénaff (56yo)

    Independent Member of Supervisory Board

    • Tenure: 1.4yrs
  • Aruna Jayanthi (57yo)

    Independent Member of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €44.14k
  • Anne-Sophie de La Bigne (59yo)

    Independent Member of Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €58.33k
  • Cyrille Poughon (44yo)

    Non-Independent Non-Executive Member of Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €45.00k

Company Information

Compagnie Générale des Établissements Michelin's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compagnie Générale des Établissements Michelin
  • Ticker: ML
  • Exchange: ENXTPA
  • Founded: 1863
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: €18.757b
  • Shares outstanding: 179.06m
  • Website: https://www.michelin.com

Number of Employees


Location

  • Compagnie Générale des Établissements Michelin
  • 23, place des Carmes
  • Clermont-Ferrand
  • Auvergne
  • 63000
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGDD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MLENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0OFMLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
MCHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MLPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
ML NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
MGDD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Compagnie Générale des Établissements Michelin manufactures, distributes, and sells tires worldwide. It operates through three segments: Automotive and Related Distribution, Road Transportation and Related ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:42
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.