Compagnie Generale des Etablissements Michelin (MGDDY)
OTHER OTC:MGDDY
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Compagnie Generale des Etablissements Michelin
(OTC:MGDDY)
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Rating:72Outperform
Price Target:
$20.00
▲(7.64% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by solid financial quality (steady profitability and improved leverage) but constrained by limited recent revenue growth and uneven cash conversion. Technicals add support due to a strong uptrend, though overbought readings reduce conviction. Valuation is moderately favorable with a reasonable P/E and a supportive dividend yield.
Positive Factors
Improved leverage and balance sheet
Lower leverage (debt-to-equity ~0.37) materially improves financial flexibility and reduces refinancing risk. This stronger balance sheet supports sustained capital allocation to capex, dividends, and strategic investments, and cushions the company through cyclical downturns.
Negative Factors
Soft revenue trend
A declining top line (≈-2.8% in 2025) constrains scalability and limits room for margin expansion through volume leverage. Persistent softness in OEM or replacement demand could force greater reliance on pricing, specialty segments, or cost cuts to sustain long-term earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and balance sheet
Lower leverage (debt-to-equity ~0.37) materially improves financial flexibility and reduces refinancing risk. This stronger balance sheet supports sustained capital allocation to capex, dividends, and strategic investments, and cushions the company through cyclical downturns.
Read all positive factors
Compagnie Generale des Etablissements Michelin (MGDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.49B
Dividend Yield4.61%
Average Volume (3M)8.34K
Price to Earnings (P/E)12.0
Beta (1Y)0.44
Revenue Growth-3.09%
EPS Growth-17.42%
CountryUS
Employees118,400
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.71
Shares Outstanding1,375,195,000
10 Day Avg. Volume25,032
30 Day Avg. Volume8,344
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)1.10
Price to Sales (P/S)0.77
P/FCF Ratio11.12
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.52
Enterprise Value/Ebitda5.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.66
Revenue Forecast (FY)$31.07B
Compagnie Generale des Etablissements 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 through multiple channels and customer segments. Its largest and most direct revenue stream comes from tire sales to: (1) original equipment manufacturers (OEMs), where Michelin supplies tires fitted...
Compagnie Generale des Etablissements Michelin Earnings Call Summary
Earnings Call Date:Jul 24, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong operational performance with significant improvements in operating income and cash flow generation, alongside notable environmental achievements. However, challenges such as volume declines in specialty segments and market distortions from budget tire inflows posed concerns. Overall, the company maintained a positive outlook with strong segment operating income and cash flow targets.Positive Updates
Strong Segment Operating Income
Segment operating income reached 13.2% of sales in H1, showing an improvement from 12.1% in H1 2023.
Negative Updates
Volume Decline in Specialty Segment
Experienced a 7.2% volume decline in specialties, driven by lower sales in original equipment and mining adjustments.
Read all updates
Q2-2024 Updates
Positive
Negative
Strong Segment Operating Income
Segment operating income reached 13.2% of sales in H1, showing an improvement from 12.1% in H1 2023.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for Michelin (ML.PA), the company's executives provided robust guidance for the remainder of the year. They projected a segment operating income exceeding EUR 3.5 billion at constant exchange rates and free cash flow surpassing EUR 1.5 billion before acquisitions. In H1 2024, Michelin achieved a 13.2% operating income margin, up from 12.1% in H1 2023, driven by a 1.9% improvement in mix and a strong cash flow generation of EUR 669 million. The company maintained a focus on value-driven approaches and geographical segmentation, with a notable contribution from its Connected Solutions in the road transportation segment. Additionally, Michelin highlighted a favorable operating cost environment, with benefits from raw materials, energy, and seafreight, although labor costs continue to rise. Despite a challenging environment with inflated markets due to Asian tire imports, Michelin's strategic focus on high-value segments and geographies supported its strong financial outlook.Compagnie Generale des Etablissements Michelin Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
76
Positive
Cash Flow
66
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 | 7.54B | 6.99B |
| EBITDA | 4.65B | 4.83B | 4.88B | 4.95B | 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 | 34.70B |
| Cash, Cash Equivalents and Short-Term Investments | 3.97B | 4.03B | 2.80B | 2.87B | 4.81B |
| Total Debt | 6.61B | 7.37B | 6.24B | 7.34B | 7.82B |
| Total Liabilities | 16.94B | 18.72B | 17.24B | 18.23B | 19.73B |
| 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 Generale des Etablissements Michelin Technical Analysis
Positive
18.58
Price Trends
18.34
Negative
17.54
Positive
17.70
Positive
Market Momentum
-0.27
Negative
55.44
Neutral
69.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGDDY, the sentiment is Positive. The current price of 18.58 is above the 20-day moving average (MA) of 17.00, above the 50-day MA of 18.34, and above the 200-day MA of 17.70, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGDDY.
Compagnie Generale des Etablissements Michelin Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.33B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.60B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
72 Outperform | $24.49B | 11.96 | 9.30% | 4.61% | -3.09% | -17.42% | |
69 Neutral | $8.26B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $11.33B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
43 Neutral | $2.02B | -1.47 | -42.27% | ― | -3.87% | -482.29% |
* Consumer Cyclical Sector Average
MGDDY
Compagnie Generale des Etablissements Michelin
17.86
2.03
12.85%
ALV
Autoliv
110.51
33.10
42.76%
BWA
BorgWarner
54.96
29.65
117.17%
GT
GoodYear Tire
7.05
-2.01
-22.19%
LEA
Lear
124.75
50.63
68.30%
VC
Visteon
97.02
30.58
46.02%
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.