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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:68Neutral
Price Target:
$20.00
▲(26.58% Upside)
The overall stock score of 68 reflects solid financial performance with stable profitability and operational efficiency. However, technical indicators suggest a bearish trend, and the increase in debt and challenges in free cash flow generation are potential risks. The stock's valuation is reasonable, with an attractive dividend yield providing a positive offset.
Compagnie Generale des Etablissements Michelin (MGDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.37B
Dividend Yield4.79%
Average Volume (3M)12.74K
Price to Earnings (P/E)13.2
Beta (1Y)0.45
Revenue Growth-3.09%
EPS Growth-17.42%
CountryUS
Employees118,400
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.69
Shares Outstanding1,411,497,600
10 Day Avg. Volume22,844
30 Day Avg. Volume12,741
Financial Highlights & Ratios
PEG Ratio-2.78
Price to Book (P/B)1.21
Price to Sales (P/S)0.83
P/FCF Ratio10.90
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit4.29
Enterprise Value/Ebitda7.05
Forecast
1Y Price Target
$20.00Price Target Upside26.58% Upside
Rating ConsensusHold
Number of Analyst Covering1
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. 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 Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Feb 16, 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.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
Compagnie Generale des Etablissements Michelin demonstrates solid profitability and operational efficiency, with stable margins and a strong return on equity. While the balance sheet reflects a balanced capital structure, the recent increase in debt requires careful monitoring. Cash flow management shows potential weaknesses, particularly in free cash flow generation, which could impact future financial flexibility.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 | 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
Negative
15.80
Price Trends
18.03
Negative
18.29
Negative
17.78
Negative
Market Momentum
-0.67
Positive
28.65
Positive
16.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGDDY, the sentiment is Negative. The current price of 15.8 is below the 20-day moving average (MA) of 17.39, below the 50-day MA of 18.03, and below the 200-day MA of 17.78, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 28.65 is Positive, neither overbought nor oversold. The STOCH value of 16.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.31B | 13.25 | 31.09% | 2.50% | -0.98% | 21.64% | |
78 Outperform | $3.15B | 11.02 | 22.96% | 0.24% | -3.26% | -45.84% | |
71 Outperform | $5.34B | 11.73 | 9.51% | 3.10% | -3.12% | -8.23% | |
68 Neutral | $22.37B | 13.17 | 8.49% | 4.79% | -3.09% | -17.42% | |
67 Neutral | $9.26B | 45.71 | 3.66% | 1.17% | -2.12% | -69.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $1.95B | 4.83 | 8.37% | ― | -4.52% | ― |
* Consumer Cyclical Sector Average
MGDDY
Compagnie Generale des Etablissements Michelin
15.80
-1.97
-11.09%
ALV
Autoliv
117.97
23.84
25.33%
BWA
BorgWarner
42.59
8.74
25.82%
GT
GoodYear Tire
6.86
-1.39
-16.85%
LEA
Lear
99.46
-2.39
-2.35%
VC
Visteon
113.78
26.26
30.00%
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.