Compagnie Generale des Etablissements Michelin (MGDDY) AI Stock Analysis

• Market Cap: $23.12B
• Dividend Yield: 4.6%
• Average Volume (3M): 10.83K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.42
• Revenue Growth: -3.09%
• EPS Growth: -17.42%
• Country: US
• Employees: 118,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.69
• Shares Outstanding: 1,419,576,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 10,826
• PEG Ratio: -2.78
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 10.90
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $17.00 ▲(6.78% Upside)

The overall stock score for MGDDY is primarily influenced by its solid financial performance, despite some concerns over debt and cash flow. The valuation is attractive, with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which could pose short-term risks.

Compagnie Generale des Etablissements Michelin Business Overview & Revenue Model

Company Description

Compagnie Generale des Etablissements Michelin (MGDDY), commonly known as Michelin, is a leading global tire manufacturer headquartered in Clermont-Ferrand, France. Established in 1889, the company operates in the automotive industry, primarily focusing on the design, production, and distribution of tires for a variety of vehicles, including cars, trucks, motorcycles, bicycles, aircraft, and heavy equipment. Michelin is renowned for its innovation in tire technology and its commitment to sustainable mobility solutions. The company also engages in publishing travel guides, hotel and restaurant guides, maps, and road atlases.

How the Company Makes Money

Michelin generates revenue primarily through the sale of tires. The company's revenue model is centered around manufacturing and distributing a wide range of tires for different types of vehicles and purposes. Key revenue streams include the sale of replacement tires for passenger vehicles, commercial trucks, and specialty tires for industries such as aviation, agriculture, and construction. Michelin also benefits from its Original Equipment Manufacturer (OEM) partnerships, supplying tires directly to automotive manufacturers. Additionally, the company earns revenue from its travel and lifestyle segment, which includes the publication of Michelin guides and maps. Michelin's focus on research and development, as well as strategic acquisitions and joint ventures, further supports its revenue growth and market expansion.

Compagnie Generale des Etablissements Michelin Financial Statement Overview

Summary

Compagnie Generale des Etablissements Michelin demonstrates solid profitability and operational efficiency, with stable margins and a strong return on equity. However, the recent increase in debt and challenges in free cash flow generation require careful monitoring.

Income Statement

The company's gross profit margin and net profit margin have remained relatively stable over the years, indicating steady profitability. However, there was a decline in total revenue from 2022 to 2023, suggesting challenges in growth. The EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

The debt-to-equity ratio has fluctuated, reflecting moderate leverage levels. Return on Equity (ROE) remains robust, indicating efficient use of equity. The equity ratio is stable, showing a balanced capital structure. However, the increase in total debt from 2023 to 2024 may pose potential risks if not managed well.

Cash Flow

The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. However, the free cash flow growth rate has been negative in recent periods, highlighting potential challenges in generating free cash flow. The free cash flow to net income ratio is positive, but it has shown a declining trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.74B	27.19B	28.34B	28.59B	23.80B	20.47B
Gross Profit	7.38B	7.75B	7.95B	7.54B	6.99B	5.71B
EBITDA	4.49B	4.83B	4.88B	4.95B	4.54B	3.40B
Net Income	1.56B	1.88B	1.98B	2.00B	1.84B	632.00M
Balance Sheet
Total Assets	35.55B	37.35B	35.20B	35.35B	34.70B	31.64B
Cash, Cash Equivalents and Short-Term Investments	3.52B	4.03B	2.80B	2.87B	4.81B	4.98B
Total Debt	7.50B	7.37B	6.24B	7.34B	7.82B	8.62B
Total Liabilities	17.82B	18.72B	17.24B	18.23B	19.73B	19.01B
Stockholders Equity	17.72B	18.63B	17.95B	17.11B	14.97B	12.63B
Cash Flow
Free Cash Flow	1.48B	2.07B	3.05B	-210.00M	1.20B	2.15B
Operating Cash Flow	3.38B	4.34B	5.29B	1.93B	2.91B	3.37B
Investing Cash Flow	-1.93B	-2.11B	-2.93B	-1.95B	-1.75B	-1.39B
Financing Cash Flow	-1.39B	-794.00M	-2.34B	-1.86B	-1.43B	1.34B

Compagnie Generale des Etablissements Michelin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGDDY, the sentiment is Neutral. The current price of 15.92 is below the 20-day moving average (MA) of 16.08, below the 50-day MA of 17.30, and below the 200-day MA of 17.79, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 68.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGDDY.

Compagnie Generale des Etablissements Michelin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$5.62B	13.27	8.96%	2.80%	-1.90%	-13.86%
ALV	74 Outperform	$9.22B	12.54	31.09%	2.42%	0.84%	26.17%
BWA	72 Outperform	$9.60B	71.91	2.24%	1.11%	0.08%	-83.69%
VC	71 Outperform	$2.90B	9.55	23.16%	0.25%	-4.03%	-39.51%
MGDDY	66 Neutral	$23.12B	13.50	8.49%	4.60%	-3.09%	-17.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GT	50 Neutral	$2.30B	―	-45.16%	―	-3.87%	-482.29%

Compagnie Generale des Etablissements Michelin Corporate Events

Michelin Reports Decline in First-Half 2025 Earnings

Compagnie Generale des Etablissements Michelin SCA, commonly known as Michelin, is a leading tire manufacturer based in France, specializing in the production and distribution of tires for various vehicles, including passenger cars, trucks, and specialty vehicles, as well as offering polymer composite solutions. In its latest earnings report for the first half of 2025, Michelin reported a 3.4% decline in sales to €13,028 million compared to the same period in 2024. This decline was primarily driven by a 6.1% drop in tire volumes, offset partially by a favorable price-mix effect and growth in non-tire sales. The company faced challenges in the Original Equipment segment across all regions except China, where government incentives bolstered demand. Despite these challenges, Michelin maintained its strategic focus on high-value products and segments, such as 18-inch and larger tires, which contributed positively to the price-mix effect. The company’s operating income decreased by 23.6% to €1,200 million, reflecting lower sales volumes and increased raw material costs. Looking ahead, Michelin remains committed to its strategic priorities, focusing on technological leadership and expanding its presence in high-growth segments, while navigating the ongoing economic uncertainties.