Want to see FR:ML full AI Analyst Report?
Top Page
Compagnie Générale des Établissements Michelin
(ML)
Select Model
Select Model
Rating:71Outperform
Price Target:
€38.00
▲(10.43% Upside)
Action:Reiterated
Date:07/27/26
The score is driven primarily by solid overall financial fundamentals (profitability, manageable leverage, and positive free cash flow) but held back by recent margin/profit compression and some cash-flow volatility. Reaffirmed guidance and improving H1 profitability/FCF support the outlook, though significant FX, cost inflation, and restructuring cash-out pressures limit confidence. Valuation is reasonable with a supportive dividend yield, while technicals are moderately positive over longer timeframes but lack momentum-indicator confirmation.
Positive Factors
Balance sheet strength
Michelin's moderate leverage, reduced debt vs earlier years and a large equity base provide durable financial flexibility. Strong ratings support access to capital for capex, acquisitions and buybacks, helping the company weather commodity/FX shocks and fund strategic investments over multiple quarters.
Negative Factors
Margin compression and profit decline
The step‑down in margins and net income signals structural pressures from cost inflation, mix shifts and weaker OEM volumes. Sustained margin compression reduces internal funding capacity for capex and returns, and heightens sensitivity to future raw material or volume shocks over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Michelin's moderate leverage, reduced debt vs earlier years and a large equity base provide durable financial flexibility. Strong ratings support access to capital for capex, acquisitions and buybacks, helping the company weather commodity/FX shocks and fund strategic investments over multiple quarters.
Read all positive factors
Compagnie Générale des Établissements Michelin (ML) vs. iShares MSCI France ETF (EWQ)
Market Cap
€23.84B
Dividend Yield3.99%
Average Volume (3M)1.96M
Price to Earnings (P/E)15.1
Beta (1Y)0.86
Revenue Growth-4.07%
EPS Growth3.70%
CountryFR
Employees116,600
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.29
Shares Outstanding687,606,400
10 Day Avg. Volume2,005,179
30 Day Avg. Volume1,957,538
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)1.10
Price to Sales (P/S)0.77
P/FCF Ratio11.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€37.33Price Target Upside8.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.66
Revenue Forecast (FY)€26.44B
Compagnie Générale des Établissements Michelin Business Overview & Revenue Model
Company Description
Compagnie Générale des Établissements Michelin Société en commandite par actions is a global leader in the production and distribution of tires. The company provides a comprehensive array of tires for personal vehicles, including automobiles, raci...
How the Company Makes Money
Michelin makes money mainly by selling tires and related solutions across multiple end-markets. Its core revenue stream is the sale of tires to (1) original equipment manufacturers (OEMs) for fitment on new vehicles and (2) the replacement market ...
Compagnie Générale des Établissements Michelin Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Neutral
The call portrayed a balanced, resilient operational performance: underlying profitability improved (SOI +€103m at constant scope/FX), free cash flow was positive and acquisitions strengthened higher‑value portfolios. However, meaningful negative factors persist — significant FX headwinds (>€400m revenue impact), modest volume declines, conveyor weakness in polymer composites, manufacturing/logistics inflation (~€230m), substantial restructuring cash outs (€400–500m in 2026), and geopolitical risks that could add ~€400m of cost pressure. Management confirmed full‑year guidance, indicating confidence in execution, but the combination of near‑term macro, cost and cash‑out pressures tempers the upside.Positive Updates
Revenue and Growth at Constant FX
Group revenue €12.7 billion in H1; reported revenue down 2.6% (currency effect) while revenue at constant exchange rates grew +0.5%, showing resilience versus a challenging environment.
Negative Updates
Currency Headwinds Substantially Impact Revenue and Profit
Currency effects reduced reported revenue by ~2.6% and had a large negative impact on revenue (>€400 million) and reduced SOI by €114 million in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Growth at Constant FX
Group revenue €12.7 billion in H1; reported revenue down 2.6% (currency effect) while revenue at constant exchange rates grew +0.5%, showing resilience versus a challenging environment.
Read all positive updates
Company Guidance
Michelin reaffirmed its 2026 guidance: segment operating income (SOI) at constant scope and FX to exceed 2025 levels and free cash flow (FCF) before M&A to be more than €1.6 billion, supported by H1 results of €12.7 billion revenue (reported -2.6%, +0.5% at constant FX), SOI €1.45 billion (11.4% margin, +0.3pp; +€103m at constant scope/FX), EBITDA €2.4 billion (19.1% of sales) and H1 FCF €282 million; full‑year capex ambition remains ~€2.0 billion, M&A spend YTD ~€600 million (Cooley, Flexitallic closed; Tex‑Tech closed July 1) with polymer composite solutions up 16% in H1 and acquisitions set to lift that business ~35% on a full‑year basis, gearing was 26% at June (vs 22% a year ago), and ~€1.7 billion is earmarked for shareholder returns in 2026 (including €944 million dividends paid and ~€750 million buyback, €300 million executed by end‑June). Management reiterated it is steering on a scenario that assumes Brent around $100/bbl (a prolonged disruption could add ~€400 million of cost inflation) while noting they expect to offset headwinds through pricing, mix, restructuring and sequencing of savings (management discussed manufacturing/logistics headwind estimates in the call, noting figures cited around €400 million split €300m/€100m but also an updated net view nearer ~€230 million).Compagnie Générale des Établissements Michelin Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
76
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.16B | 25.99B | 27.19B | 28.34B | 28.59B | 23.80B |
| Gross Profit | 8.81B | 7.02B | 7.75B | 7.95B | 7.46B | 6.91B |
| EBITDA | 5.89B | 4.65B | 4.39B | 4.88B | 4.90B | 4.54B |
| Net Income | 2.01B | 1.67B | 1.88B | 1.98B | 2.00B | 1.84B |
Balance Sheet | ||||||
| Total Assets | 35.90B | 35.02B | 37.35B | 35.20B | 35.35B | 34.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.89B | 3.97B | 4.03B | 2.80B | 2.58B | 4.48B |
| Total Debt | 7.92B | 6.61B | 7.37B | 6.24B | 7.45B | 8.00B |
| Total Liabilities | 18.39B | 16.94B | 18.72B | 17.24B | 18.23B | 19.57B |
| Stockholders Equity | 17.51B | 18.07B | 18.63B | 17.95B | 17.11B | 14.97B |
Cash Flow | ||||||
| Free Cash Flow | 2.49B | 1.79B | 2.07B | 3.05B | -210.00M | 1.20B |
| Operating Cash Flow | 4.13B | 3.82B | 4.34B | 5.29B | 1.93B | 2.91B |
| Investing Cash Flow | -2.30B | -1.61B | -2.11B | -2.93B | -1.95B | -1.75B |
| Financing Cash Flow | -2.08B | -2.25B | -794.00M | -2.34B | -1.86B | -1.43B |
Compagnie Générale des Établissements Michelin Technical Analysis
Positive
34.41
Price Trends
33.96
Positive
31.82
Positive
30.24
Positive
Market Momentum
0.13
Positive
53.87
Neutral
47.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ML, the sentiment is Positive. The current price of 34.41 is below the 20-day moving average (MA) of 34.65, above the 50-day MA of 33.96, and above the 200-day MA of 30.24, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 47.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ML.
Compagnie Générale des Établissements Michelin Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €23.84B | 15.11 | 8.49% | 4.01% | -4.07% | 3.70% | |
63 Neutral | €176.74M | 9.81 | 2.72% | 13.56% | -5.13% | -32.96% | |
62 Neutral | €86.42M | -14.52 | -3.81% | 2.98% | 0.05% | -136.71% | |
58 Neutral | €1.79B | 9.04 | 9.51% | 3.85% | -3.05% | 23.49% | |
56 Neutral | €3.57B | 17.75 | 6.18% | 3.19% | -1.97% | 61.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | €1.80B | -2.08 | -75.26% | ― | -31.72% | -296.04% |
* General Sector Average
FR:ML
Compagnie Générale des Établissements Michelin
34.61
4.09
13.40%
FR:ALATI
Actia group
4.21
0.98
30.18%
FR:FRVIA
Forvia
9.07
-1.94
-17.64%
FR:AKW
AKWEL SA
6.76
-0.95
-12.30%
FR:OPM
OPmobility
12.48
-0.27
-2.14%
FR:FR
Valeo
14.56
4.54
45.29%
Compagnie Générale des Établissements Michelin Corporate Events
Michelin Publishes Interim Financial Report for First Half of 2026
Jul 27, 2026
The Michelin group has released its interim financial report for the period ending June 30, 2026, making the document publicly available and filing it with the French financial markets regulator, the Autorité des Marchés Financiers. The ...
Michelin Executes Share Buyback for Capital Reduction
Jul 23, 2026
Michelin reported a series of share buyback transactions conducted on 23 July 2026 involving its ordinary shares listed under ISIN FR001400AJ45. The transactions were executed over the counter at a daily weighted average and unit purchase price of...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.