Loading...

We've got a brand new version of Simply Wall St! Try it out

Compagnie Générale des Établissements Michelin

ENXTPA:ML
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ML
ENXTPA
€17B
Market Cap
  1. Home
  2. FR
  3. Automobiles
Company description

Compagnie Générale des Établissements Michelin manufactures, distributes, and sells tires worldwide. The last earnings update was 24 days ago. More info.


Add to Portfolio Compare Print
ML Share Price and Events
7 Day Returns
-1.9%
ENXTPA:ML
-3.9%
FR Auto Components
-0.8%
FR Market
1 Year Returns
-14%
ENXTPA:ML
-26.7%
FR Auto Components
-1.5%
FR Market
ML Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Compagnie Générale des Établissements Michelin (ML) -1.9% -12.1% -14% -14% -2.4% 12.6%
FR Auto Components -3.9% -7.9% -12% -26.7% -17.2% 6.1%
FR Market -0.8% -4.7% -2.8% -1.5% 25.5% 33.2%
1 Year Return vs Industry and Market
  • ML outperformed the Auto Components industry which returned -26.7% over the past year.
  • ML underperformed the Market in France which returned -1.5% over the past year.
Price Volatility
ML
Industry
5yr Volatility vs Market

Value

 Is Compagnie Générale des Établissements Michelin undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Compagnie Générale des Établissements Michelin to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Compagnie Générale des Établissements Michelin.

ENXTPA:ML Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year FR Government Bond Rate 0.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTPA:ML
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FR Govt Bond Rate 0.7%
Equity Risk Premium S&P Global 6.7%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.259 (1 + (1- 33%) (50.49%))
1.459
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.73% + (1.459 * 6.65%)
10.44%

Discounted Cash Flow Calculation for ENXTPA:ML using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Compagnie Générale des Établissements Michelin is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ENXTPA:ML DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 10.44%)
2020 1,630.61 Analyst x9 1,476.53
2021 1,780.23 Analyst x7 1,459.69
2022 1,530.00 Analyst x1 1,135.98
2023 1,371.34 Est @ -10.37% 921.97
2024 1,274.81 Est @ -7.04% 776.08
2025 1,214.80 Est @ -4.71% 669.67
2026 1,177.44 Est @ -3.08% 587.74
2027 1,154.68 Est @ -1.93% 521.92
2028 1,141.59 Est @ -1.13% 467.25
2029 1,135.05 Est @ -0.57% 420.67
Present value of next 10 years cash flows €8,437.52
ENXTPA:ML DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,135.05 × (1 + 0.73%) ÷ (10.44% – 0.73%)
€11,784.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €11,784.79 ÷ (1 + 10.44%)10
€4,367.68
ENXTPA:ML Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €8,437.52 + €4,367.68
€12,805.20
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €12,805.20 / 179.62
€71.29
ENXTPA:ML Discount to Share Price
Calculation Result
Value per share (EUR) From above. €71.29
Current discount Discount to share price of €92.84
= -1 x (€92.84 - €71.29) / €71.29
-30.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Compagnie Générale des Établissements Michelin is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Compagnie Générale des Établissements Michelin's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Compagnie Générale des Établissements Michelin's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTPA:ML PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in EUR €8.96
ENXTPA:ML Share Price ** ENXTPA (2019-08-16) in EUR €92.84
France Auto Components Industry PE Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 6.96x
France Market PE Ratio Median Figure of 414 Publicly-Listed Companies 16.81x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Compagnie Générale des Établissements Michelin.

ENXTPA:ML PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTPA:ML Share Price ÷ EPS (both in EUR)

= 92.84 ÷ 8.96

10.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Compagnie Générale des Établissements Michelin is overvalued based on earnings compared to the FR Auto Components industry average.
  • Compagnie Générale des Établissements Michelin is good value based on earnings compared to the France market.
Price based on expected Growth
Does Compagnie Générale des Établissements Michelin's expected growth come at a high price?
Raw Data
ENXTPA:ML PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
7.7%per year
France Auto Components Industry PEG Ratio Median Figure of 6 Publicly-Listed Auto Components Companies 0.67x
France Market PEG Ratio Median Figure of 266 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

ENXTPA:ML PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.36x ÷ 7.7%

1.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Compagnie Générale des Établissements Michelin is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Compagnie Générale des Établissements Michelin's assets?
Raw Data
ENXTPA:ML PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in EUR €68.28
ENXTPA:ML Share Price * ENXTPA (2019-08-16) in EUR €92.84
France Auto Components Industry PB Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 1.28x
France Market PB Ratio Median Figure of 612 Publicly-Listed Companies 1.41x
ENXTPA:ML PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTPA:ML Share Price ÷ Book Value per Share (both in EUR)

= 92.84 ÷ 68.28

1.36x

* Primary Listing of Compagnie Générale des Établissements Michelin.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Compagnie Générale des Établissements Michelin is overvalued based on assets compared to the FR Auto Components industry average.
X
Value checks
We assess Compagnie Générale des Établissements Michelin's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Compagnie Générale des Établissements Michelin has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Compagnie Générale des Établissements Michelin expected to grow at an attractive rate?
  • Compagnie Générale des Établissements Michelin's earnings growth is expected to exceed the low risk savings rate of 0.7%.
Growth vs Market Checks
  • Compagnie Générale des Établissements Michelin's earnings growth is positive but not above the France market average.
  • Compagnie Générale des Établissements Michelin's revenue growth is positive but not above the France market average.
Annual Growth Rates Comparison
Raw Data
ENXTPA:ML Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTPA:ML Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 7.7%
ENXTPA:ML Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.3%
France Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13%
France Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
France Market Earnings Growth Rate Market Cap Weighted Average 11.5%
France Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTPA:ML Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTPA:ML Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 25,960 2
2022-12-31 25,323 2,006 2
2021-12-31 25,050 3,806 2,249 13
2020-12-31 24,485 3,549 2,110 16
2019-12-31 23,807 3,344 1,912 12
ENXTPA:ML Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-06-30 23,206 2,795 1,605
2019-03-31 22,617 2,813 1,635
2018-12-31 22,028 2,831 1,665
2018-09-30 21,766 2,879 1,708
2018-06-30 21,504 2,926 1,751
2018-03-31 21,732 2,834 1,720
2017-12-31 21,960 2,741 1,689
2017-09-30 21,817 2,617 1,721
2017-06-30 21,674 2,492 1,752
2017-03-31 21,291 2,629 1,708
2016-12-31 20,907 2,765 1,664
2016-09-30 20,951 2,772 1,445

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Compagnie Générale des Établissements Michelin's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Compagnie Générale des Établissements Michelin's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTPA:ML Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Compagnie Générale des Établissements Michelin Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:ML Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 11.15 11.15 11.15 1.00
2021-12-31 12.77 14.17 10.72 9.00
2020-12-31 11.69 12.79 10.21 14.00
2019-12-31 10.62 11.26 9.81 11.00
ENXTPA:ML Past Financials Data
Date (Data in EUR Millions) EPS *
2019-06-30 8.96
2019-03-31 9.13
2018-12-31 9.30
2018-09-30 9.53
2018-06-30 9.75
2018-03-31 9.57
2017-12-31 9.39
2017-09-30 9.56
2017-06-30 9.73
2017-03-31 9.47
2016-12-31 9.21
2016-09-30 7.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Compagnie Générale des Établissements Michelin is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Compagnie Générale des Établissements Michelin's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the France market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the France market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Compagnie Générale des Établissements Michelin has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Compagnie Générale des Établissements Michelin's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Compagnie Générale des Établissements Michelin's year on year earnings growth rate has been positive over the past 5 years.
  • Compagnie Générale des Établissements Michelin's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Compagnie Générale des Établissements Michelin's 1-year earnings growth is negative, it can't be compared to the FR Auto Components industry average.
Earnings and Revenue History
Compagnie Générale des Établissements Michelin's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Compagnie Générale des Établissements Michelin Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:ML Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 23,206.00 1,605.00 3,959.00 659.00
2019-03-31 22,617.00 1,635.00 3,879.50 653.50
2018-12-31 22,028.00 1,665.00 3,800.00 648.00
2018-09-30 21,766.00 1,708.00 3,482.50 642.00
2018-06-30 21,504.00 1,751.00 3,468.00 636.00
2018-03-31 21,732.00 1,720.00 3,658.50 638.50
2017-12-31 21,960.00 1,689.00 3,849.00 641.00
2017-09-30 21,817.00 1,720.50 3,873.50 662.50
2017-06-30 21,674.00 1,752.00 3,898.00 684.00
2017-03-31 21,290.50 1,708.00 3,862.00 701.00
2016-12-31 20,907.00 1,664.00 3,826.00 718.00
2016-09-30 20,950.50 1,444.50 3,821.50 709.50
2016-06-30 20,994.00 1,225.00 3,817.00 701.00
2016-03-31 21,096.50 1,192.50 3,801.50 695.00
2015-12-31 21,199.00 1,160.00 3,786.00 689.00
2015-09-30 20,788.00 1,136.50 3,758.00 687.50
2015-06-30 20,377.00 1,113.00 3,730.00 686.00
2015-03-31 19,965.00 1,069.00 3,664.50 671.00
2014-12-31 19,553.00 1,025.00 3,599.00 656.00
2014-09-30 19,657.00 1,129.00 3,611.50 652.50
2014-06-30 19,761.00 1,233.00 3,624.00 649.00
2014-03-31 20,004.00 1,176.50 3,641.00 646.00
2013-12-31 20,247.00 1,120.00 3,658.00 643.00
2013-09-30 20,587.00 1,116.50 3,676.50 636.00
2013-06-30 20,927.00 1,113.00 3,695.00 629.00
2013-03-31 21,200.50 1,296.50 3,706.50 625.50
2012-12-31 21,474.00 1,480.00 3,718.00 622.00
2012-09-30 21,397.00 1,564.00 3,612.00 614.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Compagnie Générale des Établissements Michelin has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Compagnie Générale des Établissements Michelin used its assets more efficiently than the FR Auto Components industry average last year based on Return on Assets.
  • Compagnie Générale des Établissements Michelin's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Compagnie Générale des Établissements Michelin's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Compagnie Générale des Établissements Michelin has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Compagnie Générale des Établissements Michelin's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Compagnie Générale des Établissements Michelin's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Compagnie Générale des Établissements Michelin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Compagnie Générale des Établissements Michelin's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Compagnie Générale des Établissements Michelin's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Compagnie Générale des Établissements Michelin Company Filings, last reported 1 month ago.

ENXTPA:ML Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 12,280.00 7,317.00 1,721.00
2019-03-31 12,280.00 7,317.00 1,721.00
2018-12-31 12,167.00 5,851.00 2,280.00
2018-09-30 12,167.00 5,851.00 2,280.00
2018-06-30 11,479.00 4,897.00 1,347.00
2018-03-31 11,479.00 4,897.00 1,347.00
2017-12-31 11,261.00 2,611.00 1,953.00
2017-09-30 11,261.00 2,611.00 1,953.00
2017-06-30 10,461.00 3,045.00 1,494.00
2017-03-31 10,461.00 3,045.00 1,494.00
2016-12-31 10,646.00 2,946.00 1,988.00
2016-09-30 10,646.00 2,946.00 1,988.00
2016-06-30 9,383.00 2,895.00 1,273.00
2016-03-31 9,383.00 2,895.00 1,273.00
2015-12-31 9,542.00 2,875.00 1,757.00
2015-09-30 9,542.00 2,875.00 1,757.00
2015-06-30 9,803.00 3,257.00 1,530.00
2015-03-31 9,803.00 3,257.00 1,530.00
2014-12-31 9,518.00 2,275.00 1,480.00
2014-09-30 9,518.00 2,275.00 1,480.00
2014-06-30 9,436.00 2,180.00 1,285.00
2014-03-31 9,436.00 2,180.00 1,285.00
2013-12-31 9,256.00 2,244.00 2,059.00
2013-09-30 9,256.00 2,244.00 2,059.00
2013-06-30 9,134.00 2,677.00 1,634.00
2013-03-31 9,134.00 2,677.00 1,634.00
2012-12-31 8,535.00 3,225.00 2,153.00
2012-09-30 8,535.00 3,225.00 2,153.00
  • Compagnie Générale des Établissements Michelin's level of debt (59.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (23.1% vs 59.6% today).
  • Debt is well covered by operating cash flow (38.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).
X
Financial health checks
We assess Compagnie Générale des Établissements Michelin's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Compagnie Générale des Établissements Michelin has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.99%
Current annual income from Compagnie Générale des Établissements Michelin dividends. Estimated to be 4.66% next year.
If you bought €2,000 of Compagnie Générale des Établissements Michelin shares you are expected to receive €80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Compagnie Générale des Établissements Michelin's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.59%).
  • Compagnie Générale des Établissements Michelin's dividend is below the markets top 25% of dividend payers in France (4.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTPA:ML Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
France Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4%
France Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.1%
France Minimum Threshold Dividend Yield 10th Percentile 1%
France Bottom 25% Dividend Yield 25th Percentile 1.6%
France Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTPA:ML Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 4.25 1.00
2021-12-31 4.65 13.00
2020-12-31 4.35 15.00
2019-12-31 4.04 15.00
ENXTPA:ML Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-20 3.700 3.450
2019-02-11 3.700 3.596
2018-03-12 3.550 3.469
2018-02-12 3.550 2.846
2017-05-19 3.250 2.696
2016-05-13 2.850 2.866
2015-05-22 2.500 2.811
2014-05-19 2.500 3.034
2013-05-20 2.400 3.052
2012-05-11 2.100 3.434
2011-02-11 1.780 3.306
2010-05-07 1.000 1.751
2009-03-04 1.000 2.165
2009-01-09 1.600 5.251

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Compagnie Générale des Établissements Michelin's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Compagnie Générale des Établissements Michelin's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Compagnie Générale des Établissements Michelin afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Compagnie Générale des Établissements Michelin has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

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?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Florent Menegaux
COMPENSATION €1,228,543
AGE 57
TENURE AS CEO 0.3 years
CEO Bio

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 Établissements Michelin since May 18, 2018 until May 15, 2019. Mr. Menegaux served as Senior Executive Vice President and Chief Operating Officer of Compagnie Générale des Établissements Michelin (“Michelin” or the “Group”) until May 18, 2018. After graduating with a degree in finance, management and economics, he joined Price Waterhouse in 1986 as a consultant. He was soon appointed Manager, specializing in interest rate risk control and management for banks. In 1991, Exel Logistics France, a logistics and transport company, offered him the position of Finance Director. Six months later, he was promoted General Manager. From 1995 to 1996, he was General Manager of the General Cargo Transport division for the Norbert Dentressangle Group. In 1997, he joined Michelin as Commercial Director for truck tires in the United Kingdom and the Republic of Ireland. In 2000, Michelin appointed him Sales Director for Truck Tires Original Equipment and Replacement markets for North America. In 2003, he became Head of Truck Tires for South America. In 2005, he was appointed Head of the Africa – Middle East Zone.

CEO Compensation
  • Insufficient data for Florent to compare compensation growth.
  • Florent's remuneration is lower than average for companies of similar size in France.
Management Team Tenure

Average tenure and age of the Compagnie Générale des Établissements Michelin management team in years:

1.9
Average Tenure
57
Average Age
  • The average tenure for the Compagnie Générale des Établissements Michelin management team is less than 2 years, this suggests a new team.
Management Team

Florent Menegaux

TITLE
Chief Executive Officer
COMPENSATION
€1M
AGE
57
TENURE
0.3 yrs

Yves Chapot

TITLE
Former Managing Partner
COMPENSATION
€641K
AGE
57
TENURE
0.1 yrs

Valérie Magloire

TITLE
Head of Investor Relations
AGE
61

Benoit Balmary

TITLE
Group General Counsel

Adeline Challon-Kemoun

TITLE
Executive Vice President of Brands
AGE
52
TENURE
1.3 yrs

Jean-Claude Pats

TITLE
Executive Vice President of Personnel
TENURE
0.4 yrs

Jean-Christophe Guérin

TITLE
Executive Vice President of Manufacturing
TENURE
8.1 yrs

Serge Lafon

TITLE
EVP of Specialties Segment
TENURE
7.9 yrs

Sonia Artinian-Fredou

TITLE
Executive Vice-President of Services & Solutions
AGE
53
TENURE
2.4 yrs

Kamran Vossugi

TITLE
Head of East-European Geographical Area and General Director of Production for Tires
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Compagnie Générale des Établissements Michelin board of directors in years:

5.7
Average Tenure
61
Average Age
  • The tenure for the Compagnie Générale des Établissements Michelin board of directors is about average.
Board of Directors

Michel Rollier

TITLE
Chairman of the Supervisory Board
COMPENSATION
€90K
AGE
75

Barbara Dalibard

TITLE
Lead Independent Member of the Supervisory Board
COMPENSATION
€65K
AGE
61
TENURE
11.3 yrs

Olivier Bazil

TITLE
Independent Member of Supervisory Board
COMPENSATION
€65K
AGE
73
TENURE
6.3 yrs

Anne-Sophie de La Bigne

TITLE
Independent Member of Supervisory Board
COMPENSATION
€58K
AGE
59
TENURE
6.3 yrs

Jean-Pierre Duprieu

TITLE
Independent Member of Supervisory Board
COMPENSATION
€52K
AGE
67
TENURE
6.2 yrs

Cyrille Poughon

TITLE
Non-Independent Non-Executive Member of Supervisory Board
COMPENSATION
€45K
AGE
44
TENURE
5.3 yrs

Aruna Jayanthi

TITLE
Independent Member of Supervisory Board
COMPENSATION
€44K
AGE
57
TENURE
4.3 yrs

Monique Leroux

TITLE
Independent Member of Supervisory Board
COMPENSATION
€60K
AGE
65
TENURE
3.8 yrs

Thierry Hénaff

TITLE
Independent Member of Supervisory Board
AGE
56
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Compagnie Générale des Établissements Michelin's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Compagnie Générale des Établissements Michelin has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Don’t Buy Compagnie Générale des Établissements Michelin (EPA:ML) Until You Understand Its ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Compagnie Générale des Établissements Michelin: 0.11 = €2.7b ÷ (€32b - €8.3b) (Based on the trailing twelve months to June 2019.) Therefore, Compagnie Générale des Établissements Michelin has an ROCE of 11%. … Compagnie Générale des Établissements Michelin's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The Bottom Line On Compagnie Générale des Établissements Michelin's ROCE This is good to see, and with a sound ROCE, Compagnie Générale des Établissements Michelin could be worth a closer look.

Simply Wall St -

Here's How We Evaluate Compagnie Générale des Établissements Michelin's (EPA:ML) Dividend

Looking at the last decade of data, we can see that Compagnie Générale des Établissements Michelin paid its first dividend at least nine years ago. … Compagnie Générale des Établissements Michelin's dividend payout ratios are within normal bounds, although we note its cash flow is not as strong as the income statement would suggest. … Overall we think Compagnie Générale des Établissements Michelin is an interesting dividend stock, although it could be better.

Simply Wall St -

Do Institutions Own Compagnie Générale des Établissements Michelin (EPA:ML) Shares?

Every investor in Compagnie Générale des Établissements Michelin (EPA:ML) should be aware of the most powerful shareholder groups. … Check out our latest analysis for Compagnie Générale des Établissements Michelin ENXTPA:ML Ownership Summary, June 5th 2019 What Does The Institutional Ownership Tell Us About Compagnie Générale des Établissements Michelin? … Insider Ownership Of Compagnie Générale des Établissements Michelin The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

How Compagnie Générale des Établissements Michelin's (EPA:ML) Earnings Growth Stacks Up Against The Industry

See our latest analysis for Compagnie Générale des Établissements Michelin Did ML's recent earnings growth beat the long-term trend and the industry? … Though, its return on capital (ROC), which also accounts for Compagnie Générale des Établissements Michelin’s debt level, has declined over the past 3 years from 13% to 12%. … I suggest you continue to research Compagnie Générale des Établissements Michelin to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ML’s future growth?

Simply Wall St -

Is Compagnie Générale des Établissements Michelin's (EPA:ML) 14% ROE Strong Compared To Its Industry?

Check out our latest analysis for Compagnie Générale des Établissements Michelin How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Compagnie Générale des Établissements Michelin: 14% = €1.7b ÷ €12b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Compagnie Générale des Établissements Michelin's Debt And Its 14% ROE While Compagnie Générale des Établissements Michelin does have some debt, with debt to equity of just 0.51, we wouldn't say debt is excessive.

Simply Wall St -

Is Compagnie Générale des Établissements Michelin (EPA:ML) Trading At A 24% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Compagnie Générale des Établissements Michelin (EPA:ML) as an investment opportunity. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Check out our latest analysis for Compagnie Générale des Établissements Michelin

Simply Wall St -

Is Compagnie Générale des Établissements Michelin's (EPA:ML) CEO Paid At A Competitive Rate?

Jean-Dominique Senard has been the CEO of Compagnie Générale des Établissements Michelin (EPA:ML) since 2012. … See our latest analysis for Compagnie Générale des Établissements Michelin? … Our data indicates that Compagnie Générale des Établissements Michelin is worth €21b, and total annual CEO compensation is €4.2m.

Simply Wall St -

Is Now An Opportune Moment To Examine Compagnie Générale des Établissements Michelin (EPA:ML)?

led the ENXTPA gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Did Compagnie Générale des Établissements Michelin's (EPA:ML) Share Price Deserve to Gain 25%?

Unfortunately for shareholders, while the Compagnie Générale des Établissements Michelin (EPA:ML) share price is up 25% in the last five years, that's less than the market return. … See our latest analysis for Compagnie Générale des Établissements Michelin. … During five years of share price growth, Compagnie Générale des Établissements Michelin achieved compound earnings per share (EPS) growth of 8.9% per year.

Simply Wall St -

What Should We Expect From Compagnie Générale des Établissements Michelin's (EPA:ML) Earnings In The Next Couple Of Years?

In December 2018, Compagnie Générale des Établissements Michelin (EPA:ML) released its most recent earnings announcement, whicha

Simply Wall St -

Company Info

Description

Compagnie Générale des Établissements Michelin manufactures, distributes, and sells tires worldwide. It operates through three segments: Automotive and Related Distribution, Road Transportation and Related Distribution, and Specialty Businesses and Related Distribution. The company offers tires for cars, motorcycles, scooters, trucks, agricultural, and construction equipment, as well as bikes, freight transport, public transit, trucking, civil engineering, and aviation. It is also involved in the provision of tire-related services, including design, development, and fine-tuning of mobility solutions for fleet managers; mobility services, such as road maps, mobile apps, itineraries, and travel guides; lifestyle products comprising car and bike accessories, shoe soles, and sports and leisure gears; and high-tech materials that include 3D printing, chemical and specialty, rubber, biosourced, recycled, and hydrogen materials. The company was formerly known as Manufacture de Caoutchouc Michelin and changed its name to Compagnie Générale des Établissements Michelin in October 1951. Compagnie Générale des Établissements Michelin was founded in 1863 and is based in Clermont-Ferrand, France.

Details
Name: Compagnie Générale des Établissements Michelin
ML
Exchange: ENXTPA
Founded: 1863
€16,676,365,874
179,624,794
Website: http://www.michelin.com
Address: Compagnie Générale des Établissements Michelin
23, place des Carmes,
Clermont-Ferrand,
Auvergne, 63000,
France
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTPA ML Ordinary Shares Euronext Paris FR EUR 02. Jan 1992
OTCPK MGDD.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB MCH Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0OFM Ordinary Shares London Stock Exchange GB EUR 02. Jan 1992
BMV ML N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE MLP Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
OTCPK MGDD.Y UNSPONSORD ADR Pink Sheets LLC US USD 13. Oct 2008
Number of employees
Current staff
Staff numbers
119,300
Compagnie Générale des Établissements Michelin employees.
Industry
Tires and Rubber
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 20:51
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.