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Compagnie Générale Des Établissements Michelin (MGDDF)
:MGDDF
RESEARCH TOOLSreports
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Compagnie Générale des Établissements Michelin (MGDDF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.34B
Dividend Yield3.83%
Average Volume (3M)390.00
Price to Earnings (P/E)13.6
Beta (1Y)0.16
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees118,400
SectorIndustrials
Sector Strength91
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.86
Shares Outstanding705,747,250
10 Day Avg. Volume331
30 Day Avg. Volume390
Financial Highlights & Ratios
PEG Ratio-6.83
Price to Book (P/B)1.29
Price to Sales (P/S)0.00
P/FCF Ratio32.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.57Price Target Upside11.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Compagnie Générale des Établissements Michelin Business Overview & Revenue Model
Company DescriptionCompagnie 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 use, such as freight and people transport, agriculture, construction and industrial, mining and quarries, corporate fleets, tradesmen and professionals, civil and military operations, light rail, and aircraft. It is also involved in the provision of tire-related services, including development of mobility solutions for fleet managers, vehicle manufacturers, farmers, distributors, and individuals; 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 metal printing, specialty, rubber, biosourced, and recycled materials. Compagnie Générale des Établissements Michelin Société en commandite par actions was incorporated in 1863 and is based in Clermont-Ferrand, France.
How the Company Makes Money
Compagnie Générale des Établissements Michelin Earnings Call Summary
Earnings Call Date:Feb 12, 2025
(Q2-2024)
| % Change Since: 17.82%|
Next Earnings Date:Jul 24, 2025
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.Q2-2024 Updates
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.
Improved Safety and Gender Diversity
The group's safety performance improved with a total case incident rate at 1, and the percentage of women in managerial positions increased to 30.6%.
CO2 Emissions and Water Withdrawal Reduction
Reduction of CO2 emissions by 7.2% and water withdrawal by 6.3% compared to the first semester of 2023.
Margin Recovery in Road Transportation
The segment showed strong margin recovery from 5% to 9.2%, benefiting from a targeted market approach and growing contribution from Connected Solutions.
Strong Mix Improvement
A strong 1.9% mix improvement offset the negative price effect from indexation clauses.
Positive Debt Ratings
Moody's upgraded Michelin's long-term debt from A3 to A2, and Scope rated it as A.
Negative Updates
Sales Decline Due to Currency Effects
Sales ended at EUR 13.5 billion, down 3.1% excluding the currency effect.
Market Distortions from Budget Tire Inflows
The tire market was distorted by high inflows of budget tires, particularly affecting passenger car and truck replacement markets.
Negative Impact of Price Indexation Clauses
A negative price effect of 0.8% was attributed to indexation clauses, impacting the automotive segment despite a strong mix.
Reduced Original Equipment Markets
OE markets saw a sharp decline, particularly in Europe with a 5% decrease, and North America with a 9% decrease for original equipment truck tires.
Challenges in Specialty Segment
The specialty segment faced adverse contexts from weak OE, particularly in agricultural and construction sectors, leading to a 7.2% volume decline.
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
Compagnie Générale des Établissements Michelin displays robust profitability margins and a strong cash generation capability. However, the volatility in revenue and free cash flow growth suggests potential risks in maintaining consistent growth. The balance sheet reflects a stable financial position but indicates room for improvement in leveraging and return on equity.Income Statement
The company shows a strong gross profit margin consistently above 20%, indicating efficient cost management. However, the net profit margin has seen a slight decline in recent years. Revenue growth has been erratic, with a notable drop in 2023. EBIT and EBITDA margins have remained stable, reflecting steady operational performance.72
Positive
Balance Sheet
The debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity shows a slight decline, suggesting a need for improved profitability. The equity ratio is stable, which is a good sign of financial stability.65
Positive
Cash Flow
Free cash flow growth has been volatile, with significant fluctuations. The operating cash flow to net income ratio is healthy, suggesting strong cash generation capability. However, the free cash flow to net income ratio has been inconsistent, which may raise concerns about cash management efficiency.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 27.19B | 28.34B | 28.59B | 23.80B | 20.47B | Gross Profit |
| 7.75B | 7.95B | 7.46B | 6.91B | 5.63B | EBIT |
| 2.63B | 2.65B | 3.33B | 2.91B | 1.89B | EBITDA |
| 4.39B | 4.88B | 4.90B | 4.54B | 3.17B | Net Income Common Stockholders |
| 1.88B | 1.98B | 2.00B | 1.84B | 632.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.03B | 2.80B | 2.58B | 4.48B | 4.75B | Total Assets |
| 37.35B | 35.20B | 35.35B | 34.54B | 31.64B | Total Debt |
| 7.37B | 6.24B | 7.45B | 8.00B | 8.74B | Net Debt |
| 3.63B | 3.73B | 4.87B | 3.52B | 3.99B | Total Liabilities |
| 18.72B | 17.24B | 18.23B | 19.57B | 19.01B | Stockholders Equity |
| 18.63B | 17.95B | 17.11B | 14.97B | 12.63B |
| Cash Flow | Free Cash Flow | |||
| 2.07B | 3.05B | -210.00M | 1.20B | 1.99B | Operating Cash Flow |
| 4.34B | 5.29B | 1.93B | 2.91B | 3.37B | Investing Cash Flow |
| -2.11B | -2.93B | -1.95B | -1.75B | -1.39B | Financing Cash Flow |
| -794.00M | -2.34B | -1.86B | -1.43B | 1.34B |
Compagnie Générale des Établissements Michelin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $26.34B | 13.60 | 10.41% | 3.83% | ― | ― | ||
66 Neutral | $4.51B | 12.29 | 5.40% | 248.53% | 4.14% | -12.41% | |
| €1.51B | 10.39 | -4.21% | 6.50% | ― | ― | ||
| €1.50B | 26.93 | 5.80% | 1.18% | ― | ― | ||
| €193.77M | 8.03 | 6.09% | 4.10% | ― | ― | ||
| €1.53B | 9.09 | 8.49% | 5.60% | ― | ― | ||
| €2.09B | 12.88 | 4.44% | 4.88% | ― | ― |
* Industrials Sector Average
Performance Comparison
MGDDF
Compagnie Générale des Établissements Michelin
39.00
-1.81
-4.44%
GB:0MGR
Forvia
7.69
-5.77
-42.87%
GB:0EKE
Lisi SA
33.10
7.37
28.64%
GB:0F8V
AKWEL SA
7.32
-5.38
-42.36%
GB:0NW1
Plastic Omnium
10.74
0.65
6.44%
GB:0RH5
Valeo
8.59
-2.11
-19.72%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.