In the late 1800s, the Michelin (MGDDF) brothers weren’t chasing foie gras or fine dining. They were trying to sell more tyres. Based in Clermont-Ferrand, the duo had a bold idea: if people drove more, they’d wear out their tyres faster. And if they wore out their tyres faster, they’d come back to Michelin.
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So in 1900, they published a little red booklet — the Michelin Guide. It told French drivers where to refuel, where to get repairs, and quietly, where to stop for a good meal.
What began as a tool to encourage travel turned into a tool to define culinary excellence. By 1926, the guide was awarding stars. By the 1930s, the coveted three-star rating meant a place was “worth a special journey.”
Michelin never abandoned tyres. But they’d found a genius side-effect: the more people drove to dine, the more Michelin tyres they needed.
Elevating the Ordinary into Art
Today, a Michelin star can make or break a restaurant. Chefs weep, scream, or shutter their kitchens depending on what the Red Book delivers. And yet, for all the mystique, the core concept remains unchanged; more driving, more destinations, more reasons to move.
Michelin turned that movement into money.
The Michelin Guide now spans 40 countries. It has elevated dining into a form of pilgrimage — Tokyo, Paris, Singapore, New York. Diners book flights, not just tables. And Michelin, through its influence, has turned itself into one of the most trusted brands not just in transportation, but in taste.
The tyre company from France isn’t just a manufacturer. It’s a tastemaker. That’s power, and power translates to equity.
MICHELIN Stock Trades Quietly, But Don’t Ignore the Grip
Compagnie Générale des Établissements Michelin SCA (FR:ML) trades on the Euronext Paris exchange. While it may not get the same buzz as Tesla or Rivian, Michelin has been quietly delivering consistent long-term returns, strong dividends, and stable industrial leadership.
As of July 2025, Michelin stock trades near €36 with a market cap north of €25 billion. It offers a dividend yield hovering around 3.5%, with a payout backed by robust free cash flow. Despite macro pressures across the auto sector, Michelin’s margins have remained relatively resilient due to its premium positioning and global reach.
The company also continues to benefit from rising demand for high-performance tyres in the EV and autonomous vehicle sectors — and yes, it’s still printing cash off its iconic guide and associated branding partnerships.
Is MICHELIN Stock a Good Buy?
According to TipRanks, Michelin (ML) earns a “Moderate Buy” consensus based on 5 recent analyst ratings. Of those, four analysts recommend a Buy, while one remains bearish with a Sell. No Hold ratings were issued; a sign that sentiment, while divided, leans positively.
The average 12-month ML price target comes in at €37.40, implying a 17.99% upside from the current trading price of €31.70.
