Compagnie Générale des Établissements Michelin (FR:ML)
:ML
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Compagnie Générale des Établissements Michelin
(ML)
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Rating:72Outperform
Price Target:
€33.00
▲(8.37% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by solid financials (profitable business, manageable leverage, and healthy free cash flow) tempered by 2025 margin/profitability compression. Valuation is supportive with a moderate P/E and a strong dividend yield. Technicals are positive overall but appear overbought, which slightly reduces the score due to elevated near-term pullback risk.
Positive Factors
Balance sheet strength
Michelin's improving leverage and sizeable equity base provide durable financial flexibility. Lower relative debt and ~€18.1B equity support investment, cyclical resilience, and capacity for shareholder returns or strategic M&A over the next 2–6 months.
Negative Factors
Margin compression
The step-down in margins and lower net income despite a revenue rebound suggests pressure on pricing or rising input/operating costs. Sustained margin erosion would weaken earnings power, ROE and the company's ability to fund capex and dividends over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Michelin's improving leverage and sizeable equity base provide durable financial flexibility. Lower relative debt and ~€18.1B equity support investment, cyclical resilience, and capacity for shareholder returns or strategic M&A over the next 2–6 months.
Read all positive factors
Compagnie Générale des Établissements Michelin (ML) vs. iShares MSCI France ETF (EWQ)
Market Cap
€20.94B
Dividend Yield4.95%
Average Volume (3M)1.96M
Price to Earnings (P/E)12.0
Beta (1Y)0.76
Revenue Growth-3.62%
EPS Growth-17.91%
CountryFR
Employees118,400
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.20
Shares Outstanding687,597,500
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
€34.90Price Target Upside14.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.83
Revenue Forecast (FY)€26.53B
Compagnie Générale des Établissements Michelin Business Overview & Revenue Model
Company Description
Compagnie Générale des Établissements Michelin Société en commandite par actions manufactures and sells tires worldwide. The company offers tires for private use covering cars, racing, biking, motorcycles, scooters, and mopeds; and professional us...
How the Company Makes Money
Michelin primarily makes money by selling tires and related products to two main customer channels: (1) original equipment manufacturers (OEMs) that fit tires on new vehicles, and (2) the replacement market, where consumers, fleets, and distributo...
Compagnie Générale des Établissements Michelin Earnings Call Summary
Earnings Call Date:Jul 24, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong operating income, cash flow, and improvements in safety and environmental metrics. However, challenges were noted with sales declines due to currency effects, market distortions from budget tire inflows, and a negative impact from price indexation clauses. Despite these challenges, the company maintained its guidance and showed resilience in its operational performance.Positive Updates
Strong Operating Income and Cash Flow
Segment operating income reached 13.2% of sales in H1, an increase from 12.1% in H1 2023. Strong cash flow generation before acquisition of EUR 669 million was achieved.
Negative Updates
Sales Decline Due to Currency Effects
Sales ended at EUR 13.5 billion, down 3.1% excluding the currency effect.
Read all updates
Q2-2024 Updates
Positive
Negative
Strong Operating Income and Cash Flow
Segment operating income reached 13.2% of sales in H1, an increase from 12.1% in H1 2023. Strong cash flow generation before acquisition of EUR 669 million was achieved.
Read all positive updates
Company Guidance
In the second quarter 2024 earnings call for Michelin (ML.PA), management provided guidance highlighting a strong operational performance despite a challenging market environment. The company reported a segment operating income of 13.2% of sales for the first half, up from 12.1% in the same period last year, and a robust cash flow generation of EUR 669 million before acquisitions. Sales reached EUR 13.5 billion, a decline of 3.1% excluding currency effects, with a mix improvement of 1.9% offsetting negative pricing due to indexation clauses. The guidance for 2024 remains unchanged, with expectations for segment operating income to exceed EUR 3.5 billion at constant exchange rates and free cash flow to surpass EUR 1.5 billion before acquisitions. Michelin also emphasized continued progress in strategic areas, such as increasing the number of women in managerial positions to 30.6% and reducing CO2 emissions by 7.2% compared to the first half of 2023.Compagnie Générale des Établissements Michelin Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
76
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.99B | 27.19B | 28.34B | 28.59B | 23.80B |
| Gross Profit | 7.02B | 7.75B | 7.95B | 7.46B | 6.91B |
| EBITDA | 4.65B | 4.39B | 4.88B | 4.90B | 4.54B |
| Net Income | 1.67B | 1.88B | 1.98B | 2.00B | 1.84B |
Balance Sheet | |||||
| Total Assets | 35.02B | 37.35B | 35.20B | 35.35B | 34.54B |
| Cash, Cash Equivalents and Short-Term Investments | 3.97B | 4.03B | 2.80B | 2.58B | 4.48B |
| Total Debt | 6.61B | 7.37B | 6.24B | 7.45B | 8.00B |
| Total Liabilities | 16.94B | 18.72B | 17.24B | 18.23B | 19.57B |
| Stockholders Equity | 18.07B | 18.63B | 17.95B | 17.11B | 14.97B |
Cash Flow | |||||
| Free Cash Flow | 1.79B | 2.07B | 3.05B | -210.00M | 1.20B |
| Operating Cash Flow | 3.82B | 4.34B | 5.29B | 1.93B | 2.91B |
| Investing Cash Flow | -1.61B | -2.11B | -2.93B | -1.95B | -1.75B |
| Financing Cash Flow | -2.25B | -794.00M | -2.34B | -1.86B | -1.43B |
Compagnie Générale des Établissements Michelin Technical Analysis
Positive
30.45
Price Trends
31.43
Negative
30.11
Positive
30.33
Positive
Market Momentum
-0.30
Negative
52.74
Neutral
79.15
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 30.45 is above the 20-day moving average (MA) of 29.46, below the 50-day MA of 31.43, and above the 200-day MA of 30.33, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €20.94B | 11.99 | 8.49% | 4.95% | -3.62% | -17.91% | |
62 Neutral | €2.33B | 12.33 | 8.94% | 3.86% | -0.29% | -1.66% | |
60 Neutral | €192.14M | 13.44 | 2.94% | 7.43% | -8.58% | -52.26% | |
57 Neutral | €72.75M | -11.26 | -8.07% | 3.87% | -7.63% | 85.35% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €2.72B | 14.37 | 3.67% | 3.66% | -4.16% | -48.55% | |
46 Neutral | €2.06B | -1.28 | -11.30% | 3.79% | -0.90% | -324.34% |
* General Sector Average
FR:ML
Compagnie Générale des Établissements Michelin
30.45
1.78
6.20%
FR:ALATI
Actia group
3.62
0.83
29.70%
FR:FRVIA
Forvia
10.47
4.77
83.56%
FR:AKW
AKWEL SA
7.24
0.12
1.71%
FR:OPM
OPmobility
16.38
8.09
97.61%
FR:FR
Valeo
11.16
3.86
52.92%
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.