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Compagnie Generale des Etablissements Michelin (MGDDY)
OTHER OTC:MGDDY
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Compagnie Generale des Etablissements Michelin
(OTC:MGDDY)
Rating:69Neutral
Price Target:
$20.50
▲(10.04%Upside)
Compagnie Generale des Etablissements Michelin (MGDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.16B
Dividend Yield4.06%
Average Volume (3M)4.70K
Price to Earnings (P/E)13.0
Beta (1Y)0.47
Revenue Growth-4.01%
EPS Growth-4.43%
CountryUS
Employees118,400
SectorIndustrials
Sector Strength86
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.52
Shares Outstanding1,411,494,500
10 Day Avg. Volume14,101
30 Day Avg. Volume4,700
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)0.54
Price to Sales (P/S)0.00
P/FCF Ratio-44.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Compagnie Generale des Etablissements 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 MoneyMichelin generates revenue primarily through the sale of tires and related products across various segments including passenger vehicles, commercial trucks, motorcycles, and specialty vehicles like aircraft and agricultural machinery. The company also earns from its travel-related publications and digital mobility services. Michelin's revenue model is augmented by its global presence, extensive distribution network, and strategic partnerships with automotive manufacturers, which ensure a steady demand for its products. Additionally, Michelin invests in research and development to innovate and improve its offerings, thereby maintaining its competitive edge and driving sales.
Compagnie Generale des Etablissements Michelin Earnings Call Summary
Earnings Call Date:Feb 12, 2025
(Q2-2024)
| % Change Since: 12.36%|
Next Earnings Date:Jul 24, 2025
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.Q2-2024 Updates
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.
Cash Flow Generation
Generated a strong cash flow of EUR 669 million before acquisition, driven by disciplined budget business management.
Environmental Achievements
Reduced CO2 emissions (Scope 1 and 2) by 7.2% and water withdrawal by 6.3% versus the first semester of 2023.
Record Operating Margin
Achieved 13.2% operating margin, a record high, with a EUR 100 million increase in segment operating income like-for-like.
Positive Mix Improvement
Achieved a strong 1.9% mix improvement, more than offsetting negative price effects from indexation clauses.
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.
Negative Pricing Impact
Pricing was negatively impacted by 0.8% due to indexation clauses in the contractual business.
Market Distortions
Distorted markets due to strong inflows of budget tires, particularly in passenger car and light truck segments.
Currency Headwinds
Negative currency effects impacted top-line results, notably from currencies like the Turkish lira and Japanese yen.
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
The company shows solid profitability with stable margins and a strong return on equity. However, the increase in debt and challenges in free cash flow generation present potential risks.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.73
Positive
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.70
Positive
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.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 | 7.54B | 6.99B | 5.71B |
| EBITDA | 4.83B | 4.88B | 4.95B | 4.54B | 3.44B |
| Net Income | 1.88B | 1.98B | 2.00B | 1.84B | 632.00M |
Balance Sheet | |||||
| Total Assets | 37.35B | 35.20B | 35.35B | 34.70B | 31.64B |
| Cash, Cash Equivalents and Short-Term Investments | 4.03B | 2.80B | 2.65B | 4.81B | 4.98B |
| Total Debt | 7.37B | 6.24B | 7.34B | 7.82B | 8.62B |
| Total Liabilities | 18.72B | 17.24B | 18.23B | 19.73B | 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 | 2.15B |
| 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 Generale des Etablissements Michelin Technical Analysis
Positive
18.63
Price Trends
18.47
Positive
17.84
Positive
17.45
Positive
Market Momentum
>-0.01
Negative
52.77
Neutral
96.98
Negative
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 18.63 is above the 20-day moving average (MA) of 18.52, above the 50-day MA of 18.47, and above the 200-day MA of 17.45, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 96.98 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.76B | 28.40 | 5.38% | 1.25% | -8.23% | -52.61% | |
75 Outperform | $5.54B | 12.14 | 10.00% | 2.97% | -3.15% | -6.70% | |
75 Outperform | $9.10B | 13.56 | 28.71% | 2.38% | -2.29% | 35.00% | |
70 Outperform | $9.99B | 14.46 | 11.37% | 3.10% | -0.74% | -13.75% | |
69 Neutral | $26.16B | 12.99 | 10.41% | 4.06% | -4.01% | -4.43% | |
65 Neutral | $10.77B | 15.80 | 5.51% | 1.90% | 3.03% | -26.66% | |
61 Neutral | $3.24B | 13.52 | 5.06% | ― | -5.43% | ― |
* Industrials Sector Average
Performance Comparison
MGDDY
Compagnie Generale des Etablissements Michelin
18.63
0.08
0.43%
ALV
Autoliv
117.74
12.74
12.13%
BWA
BorgWarner
35.32
4.31
13.90%
GT
GoodYear Tire
11.34
0.48
4.42%
LEA
Lear
103.58
-6.79
-6.15%
LKQ
LKQ
38.68
-1.86
-4.59%
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.